High Peak MP delivers on farming promise

Jon Pearce MP has welcomed today’s government announcement to increase the thresholds for Agricultural Property Relief (APR) and Business Property Relief (BPR).

He has described the move as an important step in protecting family farms and rural businesses across High Peak. 

Under the changes, the APR and BPR threshold will increase from £1 million to £2.5 million when the reforms are introduced in April 2026. This will allow spouses or civil partners to pass on up to £5 million in qualifying agricultural or business assets between them before paying inheritance tax, on top of existing allowances. 

As a result of the reforms, the number of estates claiming agricultural property relief (including those also claiming business property relief) affected in 2026–27 will halve, falling from 375 following Budget 2025 to 185. Around 85 per cent of all estates claiming agricultural property relief in 2026–27, including those also claiming business property relief, are forecast not to pay any additional inheritance tax as a result of these changes. 

Since his appointment as Parliamentary Private Secretary to the Prime Minister in September 2025, Jon has raised the concerns of local farmers directly at the heart of government, drawing on all of the conversations he has had with his neighbours in Hope Valley and farmers across High Peak, as well as regular discussions with the NFU. 

At the time of his appointment, Jon said his new role would give High Peak a direct line into the heart of government. He has used that access to ensure the voices of local farmers were properly heard at the very top of the Government. 

Under the previous Conservative government, more than 12,000 farmers left the industry nationally, with many families locally facing rising costs and growing uncertainty about the future. Jon has been clear that reform must strike the right balance: protecting working family farms while ensuring fairness across the tax system. Those calling for a full reversal of the policy are effectively arguing that the very wealthiest estates should not pay their fair share. In 2021–22, the benefits of agricultural property relief were heavily concentrated, with the largest 7 per cent of claims (117 estates) accounting for 40 per cent of the total cost to the Exchequer - £219 million in inheritance tax foregone. 

Jon also pointed to the contrast between those engaging seriously with farmers’ concerns and those who are not. Last week, Nigel Farage was allocated a question on farming at DEFRA Oral Questions but did not attend. 

At the same time, Jon highlighted the Conservatives’ record on farming while in government. They broke commitments made to farmers and failed to spend £300 million of the farming budget. During their time in office, food inflation reached 19.1 per cent, squeezing both farming businesses and family budgets. This occurred while the current Shadow DEFRA Secretary was serving as Financial Secretary to the Treasury. 

Jon has held repeated meetings with representatives from the National Farmers Union and with High Peak constituents to understand how the proposed changes could affect individual farms and family businesses. He has thanked everyone who has written in or spoken with him directly to share their family circumstances and concerns. 

Jon Pearce MP said: 

“When I was appointed Parliamentary Private Secretary in September, I explained that it would reduce how much I could publicly say and do, but would allow me to take the issues that matter to us in High Peak to the very heart of Government. 

One of those issues, particularly across farms in the Hope Valley, where I live, and across High Peak, was the proposed changes to inheritance tax. I have always supported the principle of the policy because it is not right that millionaires and billionaires - including people like James Dyson - can buy up large areas of farmland to avoid paying inheritance tax, pushing up land prices and making it harder for working farmers to compete. 

My concern has always been about getting the balance right and ensuring the thresholds are set at a level that protects local family farms. I have done exactly what I said I would do. I have made that case to government ministers and discussed the issue with the Prime Minister. I am delighted that this morning we have announced that the thresholds will be raised so that farmers will be able to inherit at least £2.5 million tax free but up to £5 million plus if inheriting a farm that has been owned by both their parents. This change will target the tax at the very very wealthiest estates in the UK and protect our local family farms.” 

Jon added that anyone affected by the changes who would like support or guidance is encouraged to contact his office, saying: 

“As we head into Christmas, I want to thank our farmers for everything they do, not just to keep us fed, but for keeping our rural communities thriving and safe. I look forward to continuing to represent them at the heart of government.”