Labour urged to scrap ‘vindictive’ farm tax as Tories set to force vote
Labour MPs are being urged to back scrapping the “vindictive” changes to inheritance tax (IHT) on farms, as the Conservative Party prepares to bring a vote on the issue.
Tory MPs are set to use their opposition day debate on Wednesday, December 4, to insist Parliament hold a vote on Labour’s controversial move for farmers to pay more IHT on land.
In Chancellor Rachel Reeves’ first Budget, she announced plans for changes to agricultural property relief (APR) and business property relief (BPR), which the Tories say could see farming families face tax bills of up to millions of pounds.
Shadow environment secretary Victoria Atkins said: “Labour’s vindictive family farm tax threatens to destroy British farming as we know it.”
She added: “Next week, Labour MPs have a choice to make. Will they vote to axe the tax, and save the family farm?
Or will they turn their backs on rural communities and back the Budget of broken promises?”
Kemi Badenoch’s Conservative Party has argued that farmers are often asset-rich and cash-poor, with some earning annual incomes of just £20,000.
They warn rural business owners and food producers will be forced to sell off land, with no guarantee that it will continue to be used for food production and British farming.
Figures from the National Farmers Union (NFU) suggest that three quarters of farmers will be affected, the Tories said.
Analysis by the Country Land and Business Association (CLBA) suggests the average 250 acre arable farm will have to sell 20 per cent of its land to pay Labour’s IHT bill, they added.
Atkins continued: “Last week, thousands of farmers descended on Westminster to try and make the government listen.
“So far, they’ve refused. Labour MPs now have a chance to back British farming.”
But a Labour spokesperson told the Express that the Conservatives “forced over 12,000 farmers and agricultural businesses out of business”.
They added: “They sold farmers out in trade deals, left them facing spiralling energy bills and failed to spend £300m earmarked for farmers – leaving them out of pocket as the money sat idly in the Treasury’s coffers.
And a government spokesperson told the paper ministers’ “commitment to farmers remains steadfast ”.
They said: “Our reform to agricultural and business property relief will impact around 500 estates a year.
“For these estates, inheritance tax will be at half the rate paid by others, with 10 years to pay the liability back interest free.
“This is a fair and balanced approach which fixes the public services we all rely on.”