Welcome…
Alex Robinson Partner and Head of Agriculture
It is a tumultuous time for everyone connected with farming. From the Autumn budget APR bombshell, followed by the suspension of SFI without notice, to the global market turmoil caused by President Trump’s tariffs, the outlook for a sector that relies on stability for long-term planning is decidedly bumpy. At least we have had a drier spring this year – admittedly a mixed blessing for arable farmers, but a relief for livestock farmers after battling through last year’s spring deluge.
As you might expect, I’ve spent a lot of time this year talking to other professionals about the impact of government changes on our farming clients and how to help them keep their businesses viable. Unfortunately, there are no easy answers, but unwelcome as these changes are, they should encourage necessary discussions about the farm’s future. As Siobhan Sibley points out on page 4 in her review of the APR changes, and in my comments on the SFI suspension on page 11, this is the time to reflect and consult on how to mitigate the effects on your farm.
The scourge of fly-tipping continues apace. On page 6 Stuart Miles and Richard Phillips give much needed advice on prevention strategies, what you can do if you suffer an incursion by illegal fly-tippers on your land, and the importance of working with your local authority and rural crime team.
If you employ seasonal workers, make sure that you carry out the right checks: our immigration team has recently helped a client who fell foul of the rules after unwittingly employing seasonal workers via an unlicensed gangmaster, narrowly avoiding a substantial fine. In other employment-related
news, Gemma Clark explains on page 8 how service occupancy agreements work when you provide an employee with accommodation as a necessary part of their job.
We know how important diversification is to farm incomes so it is disappointing that, in an effort to counter the shortage of suitable rental properties, the tax advantages of furnished holiday lets have been abolished. However, there are steps you can take to mitigate the financial effects of the change so do take advice. The same applies to the proposed change to MEES where the government is consulting on measures to upgrade rented properties to an EPC C rating – which may be a challenge for some older properties.
Do you have potential development land? If so, Rebecca Mushing’s article on the new Planning and Infrastructure Bill, which seeks to remove hope value when land is compulsorily purchased for education or healthcare purposes, is required reading on page 12
Finally, our news roundup covers the changes to employers’ NICs, and the national minimum wage and statutory payment increases; the news of the appointment of a Tenant Farming Commissioner; Labour’s new deal for farming – which may ring hollow at the moment; and Oxbury Bank’s launch of its Transition Loan Facility for farmers wanting to invest in sustainable farming practices.
As ever, I hope you find some, if not all, of the articles useful and do please contact me if you have any queries.
Dates for your Diary
At the time of going to print, all the events listed below indicated that they were going ahead. Please check their websites for the most up to date information.
May
Alcester Food Festival
17 May
Alcester alcesterfoodfestival.org.uk
Kenilworth Show
31 May
Stoneleigh Park Estate, Kenilworth kenilworthshow.co.uk
June
Cereals
11 – 12 June
Heath Farm, Leadenham, Lincolnshire cerealsevent.co.uk
Royal Three Counties Show
13 - 15 June
The Three Counties Showground, Malvern royalthreecounties.co.uk
Cotswold Show & Food Festival
28 – 29 June
Cirencester Park, Cirencester cotswoldshow.co.uk
July
Groundswell
2 – 3 July
Lannock Manor Farm, Hitchin groundswellag.com
The Game Fair
25– 27 July
Ragley Hall, Alcester thegamefair.org
August
Blakesley Show
2 August
Blakesley Heath Farm, Maidford, Northants theblakesleyshow.co.uk
Chatsworth Country Fair
29 – 31 August
Chatsworth House, Derbyshire chatsworth.org
September
Moreton-in-Marsh Show
6 September
Moreton-in-Marsh, Gloucestershire moretonshow.co.uk
UK Dairy Day
10 September
The International Centre, Telford ukdairyday.co.uk
Dealing with the post-budget APR shockwave
The farming sector’s immediate response to the Chancellor’s decision to remove APR from farming assets over £1million was one of dismay, swiftly followed by condemnation. Furthermore, the Treasury’s assessment that fewer than 30% of farms would be affected, appeared wildly at odds with Defra’s own figure of 66%. Despite the obvious anxiety that Rachel Reeves’ announcement caused, it is essential to remember that these proposals, even if implemented in full, will not take effect until April 2026, giving farmers time to plan. However, some positive news did emerge from the budget: APR will extend to land managed under an environmental scheme.
Planned changes
Currently, all land (and ‘character-appropriate’ farmhouses) used for agricultural purposes can be passed on free of inheritance tax providing it is part of a working farm, either owner-occupied for a minimum of two years, or tenanted for seven years (on a tenancy that began on or after 1 September 1995).
From April 2026, the following changes apply:
1. 100% combined APR and BPR will only be available on qualifying assets up to £1m. Assets exceeding this limit will be subject to an effective IHT rate of 20% IHT. CGT will continue to be rebased. Any IHT payable can be paid, interest-free, over a ten-year period.
2. The nil rate band, residence nil-rate band, transfers between spouses and the seven-year rule around gifts will not change.
3. Trusts have always been a valuable tool for succession planning but the rules around their eligibility for IHT are also changing. Each individual trust set up before the budget remains eligible for the £1m allowance if the donor dies after April 2026. However, for trusts created after 30 October 2024, the £1m allowance would be divided between them all. A technical consultation exploring options for implementing the changes ended on 23 April; the government response is expected towards the end of the year.
It is worth noting that gifts made into a lifetime trust created after 30 October 2024 will trigger a 10% IHT entry charge on assets over £1m. The seven-year rule will apply on exit charges i.e. no tax is payable if the donor survives their gift by seven years but if they die within seven years, another 10% will be due on the assets over £1m with the same result as if no trust had been made. It is also worth remembering that agricultural assets in a trust attract a 3% charge every 10 years.
How much can be passed on?
The government claims that, when all allowances are counted, the ‘average’ farm will be will able to pass on £3m before IHT kicks in is rather disingenuous. This figure only applies to couples with children who jointly own their farm. The £1m allowance applies to an individual, rather than a farm, so each spouse can pass on their £1m allowance plus their £325k nil rate band and £175k residence nil rate band (if they have direct descendants) making a total of £3m between them. However, note that the £1m allowance is not transferable between spouses. Without direct descendants, a couple could pass on £2.65m, and for someone who is not married, and with no direct descendants, the most they could pass on (say to a nephew or niece) is £1.325m.
Take time to plan
Despite the natural inclination to take immediate action, this is a time for calm reflection. It is more likely than not that most affected farms and estates will be able to mitigate some, if not all, their IHT liability, bearing in mind that there will not be a one-size fits all solution. Indeed, for some families, the new rules may galvanise them into implementing recommendations that have been gathering dust or, for others, encourage conversations about succession planning that should have been had many years ago. Regardless, this is definitely time to accept that planning for the future needs to be an essential agenda item for every business meeting.
What to do next
The first task should be to assess your likely exposure to IHT under the new regime and then consider how you might meet any IHT liability. There are options but it’s important to remember that not all will work in all situations.
One approach might be to gift land to the next generation. Again, we would urge caution as this will not be the right solution for every farm. In essence, gifts of land made during your lifetime will not be subject to IHT providing you survive for seven years (and the three-year tapering remains in place). However, you must not retain any interest in that gift otherwise you will fall foul of the ‘gift with reservation of benefit’ rules. An example would be gifting the farmhouse to the next generation but retaining sole occupation without payment of a market rent. Other solutions being widely mooted include equalisation of the farming assets between spouses, and another is insurance but, again, professional advice should be taken as it can be expensive and not universally applicable.
Given that intensive lobbying to persuade the Treasury to review the new APR rules have come to nought, our advice is to plan on the assumption that the government will not row back on its decision. Start with undertaking a thorough review of your current position, including reviewing your will(s), partnership agreement and the farm’s ownership structure, with all your professional advisers working together. This will give you an all-round view of your business and help to devise a tax-efficient approach that will underpin the long-term survival of your farm.
Siobhan Sibley, Senior Associate, Private Client
Fly tipping: no let up
Many people will remember the egregious fly tipping of tonnes of household and building detritus in Watery Lane near Lichfield in January 2024 making the lane impassable for several days for local residents, businesses and emergency services. Although this episode was particularly outrageous, it presaged a 6% country wide increase in fly tipping incidents on public land during 2024. There is no equivalent record for the amount of fly tipping on private land occurring in the same period but a CLA member survey revealed that almost all respondents had suffered from fly tipping of whom 75% reported significant financial detriment from having to clean it up.
If you discover fly tipping –report it
Fly tipping is illegal so apprehending fly tippers is potentially dangerous.
If you encounter someone fly tipping, exercise caution and call 999 with your location. If you can photograph the incident and make a note of the vehicle registration without compromising your safety, then do so. If dealing with the aftermath of fly tipping, dispose of it using a licensed carrier once you’ve informed your local authority.
Although landowners are not obliged to report fly tipping on their land to their local authority, most local authorities are keen to record as much information as possible about fly tipping and its associated costs so they can monitor the scale of the activity. The Environment Agency only needs to be informed if the waste is hazardous, poses a pollution risk, or is over 20 tonnes. The NFU is also encouraging the reporting of fly tipping via a form on their website to add weight to their campaign to make tackling this crime a priority.
Prevention is better than cure
Clearly the logistical difficulty of securing a farm boundary cannot be underestimated and it is difficult to deter the organised criminal fly tipper. However, there are some things you can do to deter the casual fly tipper:
• Secure access points using immoveable objects such as large logs, rocks and earth mounds, fences and other barriers.
• Securely lock gates - but do not impede rights of way.
• Erect ‘No Tipping’ signs with threats of prosecution.
• Remove fly tipped waste quickly before it attracts others to follow suit.
• Liaise with neighbours to identify and block any weak, accessible spots on your boundaries.
• Use CCTV and lighting if feasible
Legal remedies
A landowner can apply for an urgent interim injunction if they can prove they have an ongoing problem with fly tipping or if they can prove a high risk of it occurring (such as a neighbour’s land being affected). Photographs provide good evidence. Assuming an order is granted, it should be clearly displayed so that no fly tipper is in any doubt that a breach constitutes contempt of court, leading to fines, confiscation of vehicles or other assets, and potentially imprisonment.
Because of the nature of this type of crime, dealing with the scourge of fly tipping is not straightforward. Putting prevention measures in place, particularly if your land is at high risk of incursion, is the first step, alongside working with your local authority and rural crime team. Using an injunction successfully will depend on the circumstances but can provide a powerful deterrent. Our rural litigation team is on hand to advise on the most appropriate route.
Stuart Miles, Senior Associate
Richard Phillips, Senior Paralegal Rural property disputes
Employing seasonal workers and not falling foul of modern slavery
An article in The Grocer in December 2024 articulated the concerns of many that the Seasonal Worker Scheme was not working as well as it needed to, particularly disappointing for a sector that has waited a long time for a new scheme. Sponsor licences have been revoked; human rights issues have been raised, with accompanying calls for higher wages; and legal claims lodged. Amid growing concerns that seasonal workers are facing increasing levels of abuse, farmers and growers find themselves at the sharp end of increasing enforcement powers as exploitative practices are revealed. Sometimes the unwary suffer more than the unscrupulous.
Government determined to tackle exploitation
Some growers want to change the way the scheme operates, including extending the maximum period that workers can stay from the current six months to nine, and to recruit directly rather than via the Defra-approved scheme operators. This latter suggestion has provoked fears that exploitation will become more widespread, something that concerns various bodies including the Gangmasters & Labour Abuse Authority (GLAA), which issues licences to those supplying workers to the agricultural sector.
According to the GLAA, charging recruitment fees, use of unlicensed gangmasters, sub-standard accommodation and financial exploitation (such as inadequate pay and withheld wages) are the most frequent complaints from seasonal workers. These allegations are supported by a recent report from the Seasonal Worker Interest Group, which revealed widespread evidence of serious abuse amounting to modern slavery including trafficking, debt bondage, forced labour, racism, and threats of being sent home.
We have had to advise some farmers and growers who, having failed to conduct the correct right to work checks after using unlicensed gangmasters to recruit their workforce using false documentation, faced fines running into thousands of pounds. Reputations are at risk: Home Office inspectors can arrive in marked vans with police escorts, and word soon spreads - local media is notably quick to arrive to capture the scenes. The Government is using enhanced powers to tackle immigration crime, including misuse of the Seasonal Worker Scheme; a blitz on illegal working has already resulted in almost a thousand employers’ premises being raided.
Employers can protect themselves by following the rules and staying alert. Organisations like the Modern Slavery Intelligence Network can help farmers combat the scourge of modern slavery within their businesses, wider sector and supply chains.
Recruiting seasonal workers?
Know your responsibilities
Seasonal Worker Visa scheme eligibility: One of the Defra-approved operators must sponsor anyone who does not have automatic immigration permission to work in the UK (which, post-Brexit, includes most EU, EEA and Swiss nationals who arrived after 31 December 2020). The current scheme (extended to 2029) enables 43,000 sponsored
seasonal workers to work in the horticulture sector for a maximum of six months in any 12-month period, and 2,000 in the poultry industry (between 2 October and 31 December only). Visa applications can be made up to three months before the work start date. The Certificate of Sponsorship assigned by the approved sponsor specifies the job description and its time restriction.
Right to work checks. Employers must conduct right-to-work checks to confirm a worker’s eligibility to work in the UK, which includes checking their identity documentation and keeping a record of the right-to-work check. Failure to carry out proper right-to-work checks correctly can result in a fine if there is illegal employment. Imprisonment is a real prospect for employers who deliberately or negligently employ illegal workers.
Contract of employment. Employers must provide a contract of employment for every worker within two months of them starting work. This must, as a minimum, detail rates of pay, working hours (no more than 48 hours unless otherwise agreed), time off and holidays, and where the work is based.
Pay: Employers must pay their workers the minimum wage and give them a pay slip showing net pay plus all agreed deductions for accommodation, transport, food or other costs.
Helpline: All workers are entitled to information about how to get help if they feel they are being exploited, such as the Modern Slavery and Exploitation Helpline.
The future of the scheme
Despite the electorally popular promise to use Brexit to “take back control of our borders”; it is increasingly clear that it has achieved the reverse with lower EU migration having been overtaken by a sharp rise in migration from across the globe. Mindful of the electorate’s priorities, the government has promised to “control our borders and make sure British businesses are helped to hire Brits first.” This will continue to impact the horticultural and agriculture sector as the current scheme ends in the expectation that automation and recruitment of UK citizens will, eventually, obviate the need to recruit overseas workers, a wish that is viewed with considerable scepticism by those in the industry. In the meantime, farmers and growers will have to continue navigating the complex rules around hiring overseas workers and not falling foul of the regulations governing their employment. Our business immigration team will be happy to help with any queries and concerns.
Matthew Davies, Partner & Head of Business Immigration
Service occupancy agreements
A service occupancy agreement is, to all intents and purposes, a licence to live in a property provided specifically as part of a person’s employment, such as a farm worker. The term normally extends for as long as that person is employed; if the person leaves their job, they will also have to leave the property. This is unlike an assured
There are three principal differences between an assured shorthold tenancy and a service occupancy agreement:
Rent
Someone living in a property under a service occupancy agreement will not pay rent as it is part of their employment contract and thus part of their overall package. An employer wishing to deduct a licence fee from their employee’s salary should take legal advice before doing so as taking payment is contrary to such an arrangement.
By contrast, a tenant under an assured shorthold tenancy will be legally obliged to pay an agreed rent at an agreed time.
Termination
Under a service occupancy agreement, the tenant will have to leave if they leave their job or if they decide to live elsewhere. Employers can also issue a notice to quit which may be used if they need their employee to move into different premises rather than wanting to terminate their employment contract.
shorthold tenancy which is granted for a fixed term. For employers who value employees living on the premises, a service occupancy agreement whereby the house goes with the job is a much more flexible way of managing the property. Note that tax and NIC are payable by the employer on the value of the benefit.
Control
In order to ensure that a service occupancy agreement is just that, it must be aligned with the employment contract of the person living in the property. Beware inadvertently granting a service tenancy which is where an employee lives in a property provided by their employer, but their occupation is not closely linked to their need to live in it.
Key points to consider in a service occupancy agreement
The critical point is to link the employee’s contract of employment with the service occupancy agreement. If the link is open to question, outline clearly why the employee needs to live in the property. Include a clause that allows you to terminate the licence, as needed, without terminating the employment contract. Make it expressly clear that this is a service occupancy agreement and not a tenancy agreement. Set out the notice terms if you need to ask the employee to leave the property, for instance if it is sold. This can be with immediate effect or a after specified notice period. Finally, seek legal help before drafting such an agreement so that the contract matches your objectives.
Gemma Clark, Associate, Employment
Furnished holiday cottages –abolition of tax advantages
As we noted briefly in our autumn edition of Law & Land, one of the final actions of the last government was to abolish the tax advantages for furnished holiday lettings (FHL) to bring them into line with other rental properties. Labour has pressed on with these new measures which came into effect in April 2025. The new rules apply to all FHLs and are designed to encourage more long-term lets to help counter the shortage of suitable rental properties. Even those holiday lets that would not be suitable for long term rent, such as many of those on farms, will still be caught by the new rules.
What are the changes?
Interest payments: the tax relief on the interest on any mortgage or other loan taken out against the property will be restricted to the basic rate of tax i.e. 20%, rather than the owner’s marginal rate of tax.
Pensions: income from FHLs no longer counts as relevant earnings for pension payments.
Capital allowances rules: owners of FHLs will not be able to claim capital allowances against expenditure on plant and machinery used in the FHL. Any relief on fixtures and fittings will be restricted to ‘replacement of domestic items relief’.
CGT reliefs: the capital gain from selling a FHL cannot be rolled over into other qualifying assets (such as a new holiday cottage) and they no longer qualify for Business Asset Disposal (BADR) relief (unless the dwelling ceased to be a holiday let before the 1 April deadline in which case it may qualify for BADR). Holdover relief is also abolished so any gifting of a FHL to the next generation will be accompanied by a CGT bill.
What you need to do now
Although farmers with holiday lets will see a larger tax take, there is some merit in having a more simplified, streamlined financial administration as the accounting rules will be similar to those for other property lettings.
Additionally, any losses incurred can be offset against profits from any other property income.
However, we strongly recommend taking professional advice on how to mitigate the financial effects of the changes.
Alex Robinson Partner & Head of Agriculture
Minimum Energy Efficiency Standards (MEES) – changes ahead
A government consultation issued in February 2025 sought views on the proposed changes to the energy efficiency regulations as they affect private rented property. The private rented sector (PRS) has been subject to MEES since 2018, which requires all properties to have a minimum Energy Performance Certificate of E, subject to a valid exemption.
What are the proposed metrics?
Currently a property’s energy usage is the basis for an EPC rating. The new basis for assessing MEES will rest on three metrics designed to maximise the overall energy efficiency of the building and reduce its running costs: fabric performance, smart readiness and the heating system.
Fabric performance
This will be the primary standard to meet as it is the most likely to deliver cost savings for tenants. As the name suggests, this covers insulation, draught proofing, double glazing and anything else that will improve the thermal properties of the building.
Smart readiness
This metric will judge the degree to which a building’s energy efficiency can be improved by using tools such as solar panels, battery storage and smart meters.
Heating system
This looks at the energy costs per sqm of the building and considers the energy costs for heating, hot water, lighting, pumps, fans and anything else needing an energy source. This may also include energy requirements of cooking appliances. Possible measures could include better insulation, more efficient gas boilers, and solar panels.
What will landlords be required to do?
The consultation proposes three options for setting the standard against these metrics. The government’s preferred option is for landlords to invest in loft and cavity wall insulation, double glazing and the like (the fabric performance metric). After doing everything possible under this metric, landlords can then choose to invest in either the smart readiness metric or the heating
The government is proposing to strengthen these regulations further by introducing new metrics against which to judge a building’s energy efficiency. If adopted, these higher standards (which have been likened to meeting an EPC C) will affect farming businesses that have converted redundant farm buildings into rentable dwellings.
system metric depending on which would be most appropriate for the property. New or newly converted properties will probably meet the fabric performance standard, leaving landlords to choose between investing in either the smart readiness or heating system standard.
Financial obligations and timings
Currently, the amount landlords are required to spend to reach the minimum EPC ‘E’ is capped at £3,500 (including VAT). Under these new proposals, given that the investment requirements are greater, it is proposed that the investment cap should be £15,000 (including VAT) per property but this would not be linked to inflation. Properties that would cost more than the £15,000 cap to upgrade would be exempt and the government is proposing extending the exemption period to 10 years (up from the current five years). In terms of timing, the government is proposing that new tenancies must achieve EPC ‘C’ by 2028 and existing tenancies by 2030 but with transitional arrangements in place.
Will the adoption of new standards improve rentability?
It would be naïve to ignore the impact on tenants of the rise in the cost of living, of which household bills play a significant part. Upgrading properties to a standard that results in lower bills for tenants will almost certainly make them considerably more rentable. However, with many farm budgets so constrained, the proposed increase in the investment cap may render any upgrading unaffordable. The consultation closed at the beginning of May so we will report back on the government’s response later this year.
Alex Robinson, Partner & Head of Agriculture
Shock at overnight suspension of SFI
After the Chancellor announced a radical change to APR and IHT in October, we should probably have braced for further unexpected policy switches. Nonetheless the overnight closure of the SFI24 scheme on 11 March, without the promised six weeks’ notice, was a major shock. Breaching the budget’s cap was the given reason but the sudden axing of the scheme has left many farming businesses’ budgeting in serious disarray. The government responded to criticism by announcing that a new budget and reformed scheme would be announced in the summer Spending Review, but it will not open until 2026. The CLA estimates that fewer than half of eligible farms are in the SFI scheme, well short of the 70%+ that Defra had originally envisaged would take advantage by 2027, the end of the transition period.
Existing agreements will be honoured
In the meantime, what we do know is that the 37,000 SFI agreements already in place will continue to receive payments under the terms of their three (or more limited five-year) agreement. Agreements should also have been offered to those who had already applied before the 11 March cut-off, providing their application was eligible, and to anyone who had been prevented from submitting their application due to an IT problem, or were still waiting for their requested ‘assisted digital’ support from the RPA.
In a new development (12 May), following the threat of litigation over the lack of notice, Defra has reopened the scheme to those people who had started the application process after 12 January but had not completed it before 11 March. The RPA will contact eligible applicants (believed to be around 3000 people) to submit their applications within six weeks (although certain restrictions will apply).
Revised SFI offer aimed at least profitable farms
The general view is that the revised offer (SFI25) will offer fewer actions and will be aimed at those farms that find it harder to turn a profit and can deliver more environmental benefits. The implication is that any universality suggested by the breadth of the actions on offer under SFI24 is unlikely to continue so more productive / profitable farms will have to rethink their long-term business plans. Given the inflationary pressures on farm budgets, we’re already seeing farmers abandoning plans to implement environmentally friendly practices in favour of intensifying production.
Criticism deflected
At Westminster, MPs’ impassioned pleas to reconsider were deflected. Criticism poured in from all corners of the industry. Simon Britton, Head of agri-consultancy at Knight Frank spoke for many when he commented, “A scheme intended to provide stability during the transition has instead created further uncertainty, raising serious concerns about the government’s approach to agricultural policy.” The government seems to have forgotten that farming operates on a long planning cycle and this decision is not helped by the fact that delinked BPS payments are also being reduced this year by 76% for those receiving less than £30k, and by 100% for amounts about £30,000.
Please get in touch if you have any questions about restructuring the business to meet these new challenges. We are always happy to work with other professional advisers to arrive at the right solution for individual farming operations.
Alex Robinson, Partner & Head of Agriculture
How will planning reforms affect farmers?
The government’s commitment to building 1.5m homes over the course of this Parliament and to speed up some 150 outstanding planning decisions on critical infrastructure, is encapsulated in the Planning & Infrastructure Bill (PIB) which was introduced in March and underpinned by the new National Planning Policy Framework (NPPF) published in December 2024. Several aspects of the Bill will affect farmers including the removal of hope value when land is compulsorily purchased, and the introduction of environmental delivery plans (EDPs) which will require land for mitigation.
Some background – the new National Planning Policy Framework
The NPPF sets out the government’s planning policies, which, in turn, guide local authorities’ local plans. The new framework establishes mandatory (rather than advisory) targets for housebuilding and introduces a new ‘grey belt’ category. Given that the ambitious housing targets will require extensive acreage, the NFU had originally proposed that food production should be a ‘weighted economic argument’ when considering land for development. This proposal failed to make the final cut and any reference to agricultural land and farming in the NPPF is limited to an observation that where ‘significant development of agricultural land is demonstrated to be necessary, areas of poorer quality land should be preferred to those of a higher quality.’ Although agricultural land won’t be considered ‘grey belt’ the shift in emphasis will make it easier for farmland to be designated for non-agricultural development.
Hope value goes in compulsory purchase
To speed up delivery of local development, the Planning & Infrastructure Bill, in its current iteration, will allow greater delegation of certain planning applications to planning officers. In keeping with local accountability, and of particular importance to farmers, the Bill will allow local planning authorities, parish, town or community councils to remove the hope value from compensation payments where land is compulsory purchased for affordable housing, regeneration, or educational or health-related needs. At present, the removal of hope value from a compulsory purchase of land can only be approved by the Secretary of State.
Although the housing minister maintained that brownfield and ‘grey belt’ land would be targeted first, agricultural land adjacent to existing communities will almost certainly come into the equation, particularly if not enough land comes forward voluntarily. This may result in farmers having to sell at agricultural value rather than market value, thus going against the principle of equivalence i.e., that compulsory purchase should not leave a landowner in a worse position.
Private capital markets v. Environmental Delivery Plans
The Planning & Infrastructure Bill will allow for Natural England (NE) to manage a new Nature Restoration Fund which will be funded by a levy on developers. This fund will be used to support Environmental Delivery Plans (EDPs) drawn up by NE, which are designed to deliver large scale mitigation projects such as addressing nutrient neutrality and the specific environmental impact a particular development will have. Payment of the levy into the Fund will discharge a developer’s obligation, with the onus on NE to deliver the mitigation. The focus is on delivering environmental mitigation at scale, suggesting that considerable amounts of farmland may be required to achieve results. The government proposes that work on EDPs will start now so that they can be launched as soon as the Bill is enacted which could be another two years away.
What is not clear is how existing mitigation projects, funded by credits purchased by developers on the private market, and delivered by landowner and farmerled groups, will continue to operate once the EDPs are up and running. It also appears that if an EDP is not delivering the promised benefits, it can be scrapped, unlike private mitigation projects which are contractually determined over a set period with an agreed payback period. There is also a question mark over the future of BNG as there is no mention of it in the Bill.
‘Not targeting agricultural land’
The Minister for Housing has reiterated the need to ‘unlock land in the right places…. We are not setting out to target agricultural land and will ensure prime agricultural land and food security is protected.’
Balancing competing interests is the motivation behind the proposed Land Use Framework so it will be interesting to see if cross-departmental decision-making over land use is fair, or if the need to build trumps all other considerations. Please contact our planning team if you have questions over how the Planning & Infrastructure Bill may affect your farming operation.
Rebecca Mushing, Head of Planning
Rises to NICs, wage and statutory rates 2025/2026
From 1 April 2025:
• National Living Wage:
£12.21 per hour for all those aged 21 and over, an increase from £11.44
• National Minimum Wage:
£10 per hour (from £8.60) for those aged 18 – 20
£7.55 per hour (from £6.40) for those aged 16 - 17 and apprentices
From 6 April 2025:
• Increase in employer NICs: Employers’ NICs will increase to 15% and the threshold from which those payments are made will decrease from £9,100 to £5,000.
The Employment Allowance, allowing eligible small businesses to reduce their NIC liability, is increasing from £5000 to £10,500.
Statutory benefit payments will increase as follows from 6 April 2025:
• Statutory maternity, paternity, adoption, shared parental, parental bereavement, and neonatal care pay will increase to £187.18 (from £184.03) per week (or 90% of the employee’s average weekly earnings, whichever is lower). The lower earnings limited to qualify for these payments increases to £125.
• Maternity allowance (for those not qualifying for Statutory Maternity Pay) also increases to maximum of £187.18 (from £184.03) per week (or 90% of the employee’s average weekly earnings, whichever is lower).
• Standard statutory sick pay (“SSP”) rises to £118.75 (from £116.75). The lower earnings limit to qualify for SSP increases to £125.
Tenant Farming Commissioner to be appointed
The appointment of an independent Tenant Farming Commissioner was a core recommendation of the Rock Review. Following a call for evidence as part of its response to the Rock Review, the government has confirmed that it will appoint a Commissioner. Their role will be to improve collaboration between tenant farmers, landlords and their advisers, following the standards laid down in the Agricultural Landlord and Tenant Code of Practice by ‘providing a trusted and confidential point of contact for tenants, landlords or advisors who have concerns about poor behaviour.’ An appointment should be confirmed shortly.
Land Use Framework consultation
Originally recommended in the Dimbleby Review, the government launched a ‘national conversation’ in January (concluded on 25 April) to garner views on land use in England and how to align competing interests so that a finite resource is used as efficiently as possible. Sponsored by Defra, the intention is to develop a cross-departmental approach to land use, encapsulated in a Land Use Framework, so that decisions relating to food production, housing, energy, nature, recreation, and infrastructure are taken holistically rather than set against each other. Despite assurances that such a framework would not be prescriptive, there are fears that if key objectives (relating to, say, the environment, energy infrastructure, or housing targets) are not met, this will result in landowners being told what to do with their land. We will keep this under review.
New deal for farming
In his speech to the Oxford Farming Conference, Steve Reed committed Defra to a 25-year roadmap based on three principles:
• food security
• making farming profitable
• food production working in harmony with the environment
Packaged as a ‘new deal for farmers’, various measures were announced including buying British for public sector catering contracts; putting British farmers first in trade negotiations; cutting energy bills; improving supply chain fairness; and a £50m flood resilience task force.
Planning reforms to support food production were also mentioned to make it easier for farmers to build new on-farm infrastructure for both growth and diversification.
New funding for environmental improvements
Oxbury Bank has launched a new Transition Loan Facility for farmers wanting to invest in sustainable farming practices with the aim of reducing carbon emissions and improving soil. According to the bank, the Oxbury Transition Facility will not only provide the funds but it will also help farmers to measure the success of their improvements. It has emphasised that the initiative will be farmer-led, enabling customers to use the facility in whichever way they feel would work best for their farm. For farmers who have already started the transition process, the facility will be available for up to six years, giving them time to implement their plans; for those farmers yet to start the process, a two-year facility will be offered to help them plan and then launch the changes they want to make. This facility will be available in conjunction with other financing initiatives including government grants.
Further policies announced at the NFU Conference in February included
• extending the seasonal worker visa route until 2029
• a £110m funding injection for the Farming Innovation Programme
• a £30m increase in Higher Level Stewardship payments for upland farms
• confirmation of grants for new equipment via the Farming Equipment and Technology Fund
• a £200m investment to improve animal disease resilience
Mr Reed made no mention of the APR changes at the conference despite promising to ‘put money into the pockets of British farmers’ by ‘making farming more profitable.’
Meet the team
Alex Robinson Farms & Estates alexandra.robinson@wrighthassall.co.uk 01926 883009
Richard Dundee Estate & Succession Planning richard.dundee@wrighthassall.co.uk 01926 880748
Helen Turner-Smith Agricultural real estate helen.turner-smith@wrighthassall.co.uk 01926 883064
Katie Alsop Agriculture Disputes & Litigation katie.alsop@wrighthassall.co.uk 01926 883035
Karen Brennan Matrimonial karen.brennan@wrighthassall.co.uk 01926 880724
Wright Hassall Olympus Avenue, Leamington Spa, Warwickshire, CV34 6BF DX742180 Leamington Spa 6 T: 01926 886688 F: 01926 885588 wrighthassall.co.uk
Neal Patterson Farms & Estates neal.patterson@wrighthassall.co.uk 01926 880713
Hannah Lloyd Estate & Succession Planning hannah.lloyd@wrighthassall.co.uk 01926 880752
Fern Colwill Rural Residential Property fern.colwill@wrighthassall.co.uk 01926 883044
Rebecca Mushing Planning & HS2 Advisory rebecca.mushing@wrighthassall.co.uk 01926 883076
Tina Chander Employment tina.chander@wrighthassall.co.uk 01926 884687
This newsletter does not constitute legal advice. Specific legal advice should be taken before acting on any of the topics covered.