News in brief:
January 2026

In the days leading up to Christmas, a wave of reports, consultations and announcements were unveiled by the government. From the long-awaited Farm Profitability Review, which had been promised before Christmas and was finally unveiled hours before Parliament went into recess, to unexpected surprises such as a surprise concession from the government on its controversial proposed changes to inheritance tax. As 2026 begins, we look back at new developments ushered in during the last days of 2025…

IHT threshold announcement

After months of protests, the government unexpectedly backed down on 23 December and awarded farmers an early Christmas present in the form of a change to the zero-rate inheritance tax threshold for APR and BPR. The government says the move to shift the threshold from £1m to £2.5m (£5m for married couples), will greatly reduce the number of estates affected by the reforms. Environment Secretary Emma Reynolds said the government acted after listening closely to farmers across the country. “Farmers are at the heart of our food security and environmental stewardship, and I am determined to work with them to secure a profitable future for British farming,” she added. “It’s only right that larger estates contribute more, while we back the farms and trading businesses that are the backbone of Britain’s rural communities.” The change will be introduced through an amendment to the Finance Bill 2025, taking effect from 6 April 2026.

Profitability report unveiled

The long-awaited Farm Profitability Review, commissioned by the government and led by Baroness Minette Batters, was finally released on 18 December. Ms Batters’ remit was to examine why farm profitability has declined across multiple sectors and to identify practical steps government and industry could take to improve margins, resilience and long-term sustainability. In total, the review makes 57 recommendations to help improve long-term profitability, resilience and investment across agriculture. Alongside the review, the government also announced the creation of a new Farming and Food Partnership Board which will be chaired by Defra Secretary Emma Reynolds, with Farming Minister Dame Angela Eagle as her deputy. It will bring together senior figures from farming, food production, retail and government, to address long-standing barriers to investment and productivity from farm to fork.

Biodiversity Net Gain changes

Changes to Biodiversity Net Gain (BNG) were proposed in December as part of wider reforms to the National Planning Policy Framework. More housing developments will be exempt from rules requiring developers in England to improve wildlife habitats, in a bid to help the government achieve its target of building 1.5 million new homes in this Parliament. Mark Russell, National Joint Lead for Natural Capital at Carter Jonas, said: “The key BNG issue is whether the system is delivering real and measurable improvement in the long term. The biodiversity market undoubtedly has strong growth potential but it is challenging to scale, so the government’s decision to concentrate delivery on larger, and therefore fewer projects, could knock confidence in the fledging BNG market. However, small sites must be seen in the context of outcomes rather than just volume. Although they play a key cumulative role in housing delivery, the biodiversity gains achieved at a small scale are often marginal, frequently involving fractional units and, overall, a limited scope for meaningful improvement. As national infrastructure requirements come on stream and potentially the voluntary environmental offset market continues to grow, habitat banks may need to refocus but will continue to provide positive environmental landscape change in a challenging but growing market."

Further proposed planning changes

The consultation on reforms to National Planning Policy Framework has suggested further changes that will make it easier for farmers to secure approval for new agricultural buildings. If proposed changes to the Principle of Development are secured, local planning authorities will be expected to approve all agricultural developments in rural areas, except in exceptional circumstances. National Pig Association chief executive Lizzie Wilson says: “Planning is key to so many of the different challenges farmers face, whether it’s improving animal welfare or environmental sustainability and helping us to deliver on government ambitions around water quality. Any changes that unblock the planning system and help farmers meet these challenges are welcome, and we are pleased that these proposals seem to go some way towards achieving that.”

UK farming urged to move beyond survival mode

The 2026 Oxford Farming Conference report, UK Agriculture: Grasping the Opportunities, calls for urgent action to move the UK’s farming and agri-food sector from survival mode to a mission-driven, opportunity-focused sector capable of thriving in an increasingly complex, brittle and volatile world. The report, which is based on discussions with 25 leaders, influencers and disruptors from across the UK and global agrifood industries, argues that incremental change is no longer enough in a world shaped by instability and rapid disruption. The analysis explores what a positive future for UK agriculture could look like — and what interventions are needed to achieve it. Dr Louise Manning, author of the report, says: “The message is clear: change is not optional. To thrive, not merely survive, UK agriculture must become agile, robust and opportunity driven.”

Livestock worrying bill receives Royal Assent

Landmark legislation giving the police greater enforcement powers in instances of livestock worrying has received Royal Assent. The Dogs (Protection of Livestock) (Amendment) Act increases penalties and enables the police to take advantage of scientific advancements by taking DNA samples or mouth impressions from dogs they suspect of worrying livestock, as well as ensuring offenders can be ordered by the courts to pay the costs incurred by seizing and detaining a dog. “This is a huge victory for the farming community and a moment of real relief for livestock keepers across the country,” says NFU Vice President Rachel Hallos. “This Act will make a real difference in safeguarding livestock and giving farmers greater confidence, meaning that rather than suffering with the emotional and financial toll of this crime, farmers can instead focus on investing in their business and providing the healthy, affordable and environmentally friendly food for the nation we know the public love."