Inheritance Tax reforms a ‘lose-lose’, says HTA

According to the Horticultural Trades Association (HTA), the proposed changes to Inheritance Tax (IHT) reliefs would result in a net loss for the Exchequer of £36 million in net tax revenues from the environmental horticulture sector, by 2030 – directly refuting the economic rationale for the reforms.

New data from an economic impact analysis report, commissioned by the HTA from CBI Economics reveals that the inheritance tax reforms, would risk widespread disruption to jobs, investment, and essential environmental infrastructure – directly contradicting the government’s goal of promoting growth and increasing tax revenue.

The analysis indicates that the changes will not generate revenue but would instead lead to a reduction of £60 million in the UK’s environmental horticulture sector, with broader economic losses amounting to £143 million due to decreased industry activity.

Data projections indicate potential loss of 1,295 direct job losses (full-time equivalent) across HTA member businesses, rising to 2,529 jobs across the wider economy

In light of the evidence, the HTA is urgently calling on the government to reconsider the proposals and to recognise the critical role the horticultural sector plays not just in the economy, but in delivering environmental and social benefits to communities across the UK.

The HTA findings are reinforced by a broader warning issued by Family Business UK and 31 other trade associations, highlighting the severe consequences for SMEs and long-standing family firms nationwide.

Direct industry risk

In terms of a direct threat to horticultural businesses, the data indicates that 69% of HTA members expect to be affected by changes to Business Property Relief (BPR) and 40% anticipate an impact from changes to Agricultural Property Relief (APR) – impacting investment, workforce and business operations.

• 55% said they would pause or cancel critical investments in future growth and green infrastructure.
• 27.5% indicated plans to downsize their business operations.
• 48% said they would reduce their workforce or pause recruitment.

“This research unequivocally shows that the government’s proposed Inheritance Tax changes are a classic lose-lose. They will not only fail to raise the intended revenue but will actively cost the country vital jobs, investment, and growth. It’s deeply illogical. Our family-run horticultural firms are the very backbone of the green economy, delivering essential benefits for our economy, environment, communities, and public health and wellbeing.

“These proposals risk uprooting the sector at every level, leaving it with fewer resources to invest in the UK’s green infrastructure. Economically, socially, and environmentally, it simply doesn’t make sense for the country to be worse off and the Exchequer to receive less tax. The government must urgently rethink this misguided approach,” said Fran Barnes, Chief Executive of the HTA.

Horticulture is the cornerstone of the UK’s green economy, underpinning the nation’s green infrastructure – from nurseries providing trees for planting targets to businesses maintaining public spaces and private gardens. These reforms put all this at risk, concludes the HTA.