DUP Agriculture spokesperson Carla Lockhart has welcomed reports that Prime Minister Andy Burnham could revisit controversial inheritance tax changes affecting family farms ahead of the autumn Budget.

The Upper Bann MP said any move to alter the reforms introduced under his predecessor Sir Keir Starmer would be welcomed by farming families, including those in Northern Ireland.

Reports of a possible rethink have gathered pace in recent days, with government sources confirming that changes to inheritance tax are among possibilities being examined. No decision has been announced.

Changes to Agricultural Property Relief and Business Property Relief came into effect on 6 April 2026. Under the rules, 100% relief is available on up to £2.5 million of qualifying agricultural and business property, while qualifying assets above the available allowance receive 50% relief.

Unused allowance can be transferred from a deceased spouse or civil partner in qualifying circumstances, potentially increasing the available 100% relief allowance to £5 million. This sits alongside other inheritance tax allowances.

The £2.5 million figure represented an increase from the Government's original proposal for a £1 million allowance, announced in December 2025 following concerns raised by farmers and businesses.

Ms Lockhart said increasing the current £2.5 million individual threshold to £5 million would represent a significant improvement for family farms, particularly in Northern Ireland.

She said local farms are not on the same scale as many mainland holdings, but land values in Northern Ireland drive up the value of farm assets. Farmers are often asset rich but cash poor, with wealth tied up in land, buildings and machinery rather than available as cash for tax liabilities.

The Government has previously defended the revised arrangements, saying they are intended to raise revenue for public services while continuing to provide substantial inheritance tax relief. Its December 2025 assessment forecast that around 85% of estates claiming Agricultural Property Relief in 2026/27 would pay no more inheritance tax as a result of the reforms.

In a parliamentary answer on 18 September, the Government reiterated that a couple can pass on up to £5 million of qualifying agricultural and business assets between them before the reduced rate of relief applies, in addition to existing allowances such as the nil-rate band.

Farming organisations and political opponents have continued to argue that the changes could place additional financial pressure on family farms whose value is concentrated in land and other business assets.

Ms Lockhart said the Prime Minister should use the forthcoming Budget to address those concerns. She said the Government needs to recognise that food security is national security, and that encouraging investment, succession and continued food production should be at the heart of agricultural policy.

For now, the existing inheritance tax arrangements remain in force. Any decision to alter the policy would need to come through a further government announcement, with attention focused on whether the Prime Minister and Chancellor use the autumn Budget to make another change to the regime.