Labour MPs have refused to support the Chancellor’s tax on family farms.
The motion to increase inheritance tax on farms saw 32 Labour MPs abstain in the House of Commons on Tuesday, just a week after Rachel Reeves laid out her make-or-break budget.
The proposed policy aimed to impose a 20% inheritance tax rate on agricultural assets valued at more than £1 million.
The vote allowed MPs to share their stance on Agricultural Property Relief (APR), and saw 327 MPs in support. This marked a sharp decline from the 371 who had supported the previous proposal.
Although the vote would not formally enact any changes in law, a rebellion of this scale does indicate unrest on the back benches.
One of the Labour MPs to vote against the motion was Markus Campbell-Savours, who represents Penrith and Solway.
Mr Bradshaw insisted the Chancellor needed to pay attention to the rebellion, and told The Telegraph: “The next step is removing the impact of this unjust and unfair policy on the most vulnerable members of our community.”
The president of the National Farmers’ Union, Tom Bradshaw said: “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.”
The plan to impose the increased tax on farms has been met with concerns from struggling farmers who fear their businesses won’t be able to handle the rising costs, and may potentially force them to sell their land to make ends meet.
The policy was met with protest in London last week, which resulted in five arrests after policeput conditions on them driving their their tractors in Whitehall just 24 hours before the demonstration.
Rising taxes on farmers have significant real-world consequences, as seen when 78-year-old farmer John Charlesworth took his own life in November 2024, citing fear of rising inheritance taxes as a contributing factor.
The dissent was met with support from the government opposition. The shadow environment secretary, Victoria Atkins, said: “I commend the Labour MPs who did not vote for Labour’s family farm and family business taxes tonight.
“Shockingly, 314 Labour MPs, including the current Defra Secretary of State and farming Minister, put their own jobs first and voted for the death tax, more farm closures and higher food prices.”
