I stood beside thousands of anxious farmers – this Budget must give them hope

Agriculture underpins Scotland. It sustains thousands of rural businesses, supports 130,000 jobs in our wider food and drink sector, and plays a huge role in delivering climate and nature outcomes. But none of that is possible without one essential thing: profitable, resilient family farms.

Right now, too many of those families are worried – not just about extreme weather, volatile markets, or rising regulation, but about the future of their farms if the UK Government presses ahead with changes to Inheritance Tax. It has become the defining concern.

Our message to the Chancellor could not be clearer: change the proposals regarding APR and BPR - and end the uncertainty that has left families fearing for the future of their businesses. As I said in Westminster earlier this year, and I’ll say again now: the proposals are ill thought out, misguided, and will cause long-term damage to food production and rural communities.

I will never forget standing on top of that combine in Whitehall, looking out at thousands of farmers from across the UK – anxious, united, determined. The emotion that day was palpable. These were not people defending loopholes. They were families defending their livelihoods, their heritage, and their hopes for the next generation. That’s what APR and BPR safeguard. Undermine them, and you undermine the backbone of our rural economy.

Reforming the tax system is one thing. Doing so at the expense of productive agriculture is quite another. If the Government wants a thriving rural economy, food security, and vibrant communities, then protecting family farms must be a fundamental priority. That is why urging the UK Government to change their proposals on APR and BPR remains our top ask for this Budget.

But removing this threat is only the first step. This Budget must recognise agriculture as the strategic national asset it is. That means three things. First, amend the proposals on APR and BPR. There are alternatives which would generate the required revenue for Treasury without impacting the viability of family farms.

Second, address measures that tackle the cost burden on rural businesses and reconsider the reclassification of Double Cab Pick-Up trucks. Labour shortages, energy bills, interest rates and input inflation continue to erode margins. Targeted steps to ease these pressures would make a real difference to farm viability.

Third, reverse recent changes to National Insurance Contributions (NICs) and allow an exemption for smaller businesses and maintain reduced rates of fuel duty for red diesel used in agricultural production. Scotland’s farmers and crofters are hardworking, resilient, and proud of what they do. We will continue to deliver for Scotland – but we cannot do it alone. This Budget must show leadership, protect family farms and give rural Scotland the confidence it needs to invest in its future.

Andrew Connon is President, NFU Scotland