Scottish Conservatives have urged Prime Minister Andy Burnham to reverse controversial inheritance tax changes affecting farms and family businesses when his government delivers its first Budget this autumn.

The party has written to the Prime Minister ahead of the Budget on 28 October, warning that farming faces what it describes as a “once in a generation crisis”.

The letter, signed by all Scottish Conservative MPs and MSPs, calls for the changes to Agricultural Property Relief and Business Property Relief to be fully reversed.

The Conservatives have branded the measures the “Family Farm Tax” and claim more than 6,000 agricultural businesses have ceased trading since the changes were announced in October 2024.

They also claim one in four family farms have reduced their workforces and that three in five agribusinesses expect to cut capital investment by as much as 20 per cent as they prepare for potential future inheritance tax liabilities.

The party argues that reducing investment across agriculture will have consequences extending beyond individual farms, particularly for rural employment, food security and businesses dependent on the farming economy.

Burnham has previously indicated a willingness to look again at the inheritance tax changes, and the Conservatives are now pressing him to use his first Budget to reverse them completely.

Harriet Cross, Scottish Conservative MP for Gordon and Buchan said:

“The farming sector is facing a once in a generation crisis because of Labour’s damaging Family Farm Tax.

“More than 6,000 agricultural businesses have ceased trading and one in four have reduced their workforces since these cruel inheritance tax changes were announced.

“Farmers used to invest billions into growing the wider rural economy, but because of Labour’s anti-farming policies this is a luxury many can no longer afford.

“Andy Burnham should grow a backbone and use his first budget to fully reverse the farming inheritance changes.”

Scottish Conservative leader Russell Findlay MSP said:

“One in four family farms have already cut jobs because of Labour’s Family Farm Tax.

“If Andy Burnham refuses to scrap this spiteful tax it will sound the death knell for many Scottish farms and further harm our food security.

“Burnham claims to be listening.

“If so, he needs to do the right thing and get rid of the Family Farm Tax and the Family Business Tax.”

The argument over Agricultural Property Relief and Business Property Relief will now follow Burnham towards his first Budget, with the Conservatives making clear they intend to keep pressure on the government over the impact of the changes on Scotland’s farming and rural communities.