The government’s budget plans to impose sweeping inheritance tax changes on agriculture have prompted open resistance from its own rural MPs, delivering another political headache for Chancellor Rachel Reeves at the close of budget proceedings in Parliament.
During the final day of Commons debate, a bloc of Labour backbenchers from countryside constituencies broke with the party leadership over proposals to impose a 20% levy on farm estates valued above £1 million from April. The measures, often referred to by critics as the “family farms tax,” have triggered mounting unrest across the sector.
Tens of thousands of farmers have already travelled to London in protest, warning the reforms could force small and medium-sized holdings into liquidation. Many argue the tax burden would render family-run farms financially unviable, with long-held land at risk of being sold to meet liabilities.
The brewing discontent translated into direct parliamentary resistance during a series of votes on Tuesday night. The inheritance tax proposal was put before MPs just after 8pm in the fifth of seven end-of-debate divisions. While the government secured passage, Labour’s internal divisions were laid bare.
The government’s budget plans to impose sweeping inheritance tax changes on agriculture have prompted open resistance from its own rural MPs, delivering another political headache for Chancellor Rachel Reeves at the close of budget proceedings in Parliament.
During the final day of Commons debate, a bloc of Labour backbenchers from countryside constituencies broke with the party leadership over proposals to impose a 20% levy on farm estates valued above £1 million from April. The measures, often referred to by critics as the “family farms tax,” have triggered mounting unrest across the sector.
Tens of thousands of farmers have already travelled to London in protest, warning the reforms could force small and medium-sized holdings into liquidation. Many argue the tax burden would render family-run farms financially unviable, with long-held land at risk of being sold to meet liabilities.
The brewing discontent translated into direct parliamentary resistance during a series of votes on Tuesday night. The inheritance tax proposal was put before MPs just after 8pm in the fifth of seven end-of-debate divisions. While the government secured passage, Labour’s internal divisions were laid bare.
Dozens of Labour MPs abstained, despite party pressure, and one backbencher — Borders MP Markus Campbell-Savours — voted against his own government alongside opposition MPs. Labour’s vote tally dropped sharply, falling from 371 earlier in the evening to 327. The government ultimately carried the motion by 327 votes to 182, a majority of 145.
Pressure from farmers intensifies
The National Farmers Union (NFU) had urged Labour MPs to withhold their support, publicly encouraging abstentions ahead of the vote.
“To Labour MPs: We ask you to abstain on Budget Resolution 50,” the union said in a direct appeal.
“With your help, we can show the government there is still time to get it right on the family farm tax. A policy with such cruel human costs demands change. Now is the time to stand up for the farmers you represent.”
After the vote, NFU president Tom Bradshaw praised those MPs who refused to back the policy.
“The MPs who have shown their support are the rural representatives of the Labour Party. They represent the working people of the countryside and have spoken up on behalf of their constituents.
“It is vital that the chancellor and prime minister listen to the clear message they have delivered this evening. The next step in the fight against the family farm tax is removing the impact of this unjust and unfair policy on the most vulnerable members of our community.”
Rebellion from the countryside
Several Labour MPs broke ranks publicly during the debate.
Mr Campbell-Savours warned the changes could devastate longstanding agricultural families.
“There remain deep concerns about the proposed changes to agricultural property relief (APR).
“Changes which leave many, not least elderly farmers, yet to make arrangements to transfer assets, devastated at the impact on their family farms.”
Newly elected MP for South Derbyshire, Samantha Niblett, who abstained, described widespread alarm in rural communities.
“I do plead with the government to look again at APR inheritance tax.
“Most farmers are not wealthy land barons, they live hand to mouth on tiny, sometimes non-existent profit margins. Many were explicitly advised not to hand over their farm to children, (but) now face enormous, unexpected tax bills.
“We must acknowledge a difficult truth: we have lost the trust of our farmers, and they deserve our utmost respect, our honesty and our unwavering support.”
Growing list of abstentions
Labour MPs from rural constituencies who did not vote included:
Tonia Antoniazzi (Gower), Julia Buckley (Shrewsbury), Jonathan Davies (Mid Derbyshire), Maya Ellis (Ribble Valley), Anna Gelderd (South East Cornwall), Ben Goldsborough (South Norfolk), Alison Hume (Scarborough and Whitby), Terry Jermy (South West Norfolk), Jayne Kirkham (Truro and Falmouth), Noah Law (St Austell and Newquay), Perran Moon (Camborne and Redruth), Samantha Niblett (South Derbyshire), Jenny Riddell-Carpenter (Suffolk Coastal), Henry Tufnell (Mid and South Pembrokeshire), John Whitby (Derbyshire Dales), Steve Witherden (Montgomeryshire and Glyndwr) and Amanda Hack (North West Leicestershire).
Warning signs for party leadership
Although Labour secured the vote, the revolt has sent a warning signal to both Chancellor Reeves and Prime Minister Sir Keir Starmer. Many of the dissenting MPs were newly elected representatives from traditionally rural seats — a sign that the government’s authority in the countryside may already be under strain.
The votes mark the clearest internal challenge yet to the chancellor’s budget, underscoring growing unease within Labour over policies that risk alienating rural voters barely months into office.
Adapted From:
VARIOUS SOURCES
