North-east Tory urges Labour MPs to ditch ‘family farm tax’

Harriet Cross says Commons' vote is opportunity for MPs on all sides of the House to reject PM's 'cruel and shameful demands'.

By Keith Findlay

December 3 2024, 2:03 pm

The 'family farm tax' proposals have caused outrage in the UK agriculture industry. Image: Shutterstock

Prime Minister Sir Keir Starmer is facing growing pressure to ditch the so-called “family farm tax”.

As many as 60 MPs from his party are expected to abstain in a vote on the controversial inheritance tax (IHT) proposals in the House of Commons tomorrow.

The Conservatives, led by Kemi Badenoch, are behind the move to force a vote.

According to the Tories, 114 rural MPs are under “intense pressure” from their constituencies.

MPs urged to ‘do what is best for farming’

Gordon and Buchan Conservative MP Harriet Cross said: “This vote is an opportunity for Labour MPs to put party politics aside and do what is best for farming and the UK’s food security.

“Since announcing the family farm tax, Keir Starmer has shown a despicable lack of empathy to our nation’s farmers.

“Now is the time for Labour to show they have finally listened to north-east farmers who have been betrayed and can no longer invest, while some will have to sell their farms that have been producing for generations.”

North-east MP Harriet Cross. Image: Scottish Conservatives

Ms Cross added: “Labour MPs must choose – will they save the family farm or turn their backs on rural communities by bowing down to Keir Starmer’s cruel and shameful demands?”

Chancellor Rachel Reeves announced the controversial changes to valuable IHT reliefs, including agricultural property relief, in her Autumn Budget.

From April 2026, farm assets worth more than £1 million passing from one generation to the next will be liable for IHT charged at a rate of 20%.

Farmers throughout the UK fear this will land younger generations with huge tax bills.

Protesters at a farming rally in London last month. Image: Shutterstock

Graeme Cran, associate director, private client, for finanncial services firm Azets in Aberdeen, said: “The sweeping changes to IHT rules have caused considerable frustration, particularly among those who have meticulously planned their estates in accordance with longstanding legislation.”

More than 175,000 people sign petition against ‘family farm tax’

A petition was launched by the Tories, urging Labour to ditch the proposals.

It has now gathered more than 175,000 signatures, with the number continuing to rise.

Treasury insists inheritance tax changes will have limited impact

According to the Treasury, the tax relief changes will affect just over a quarter of UK farms.

A government spokesman said: “We have been clear since this change was announced that around 500 claims of agricultural and business property Relief each year will be impacted.

“This is based off actual claims data.

“And even when inheritance tax does kick in, it is effectively at half the rate paid by others.”