The government is facing calls from its own backbenches to reconsider controversial plans to impose inheritance tax on farmers, despite the proposals securing approval in a House of Commons vote.
Backbench Rebellion and Broken Promises
In a tense Budget debate on Tuesday 2 December 2025, Labour MPs voiced strong opposition to changes to Agricultural Property Relief (APR). Markus Campbell-Savours, the Labour MP for Penrith and Solway, stated he would vote against Chancellor Rachel Reeves's tax changes, citing a need to stand by his community. He revealed that many farmers had been reassured by Labour candidates before the election, based on public commitments from the shadow Defra secretary, that APR would remain untouched.
"I was one of those Labour candidates, and it’s for that reason I’ll be voting against the Budget resolution enabling these changes," Mr Campbell-Savours told the Commons. He expressed a desire to walk around his constituency "knowing I did all I could for them", a promise he felt would be broken by supporting the tax.
Protests and Warnings of a "Family Farm Tax"
The political discontent mirrors fury within the agricultural community. Farmers staged protests in Whitehall, London, on Budget Day, demonstrating against the inheritance tax reforms. The changes, first proposed last year, introduce a 20 per cent rate on agricultural land and businesses valued over £1 million.
The National Farming Union (NFU) had urged Labour MPs to abstain from the vote. NFU president Tom Bradshaw condemned the policy, warning it would create a "family farm tax" that traps elderly and terminally ill farmers with no ability to plan, calling the measure "inhumane and cruel".
Concerns Over Targeting and Fairness
Several Labour MPs argued the policy misses its intended target. Samantha Niblett, MP for South Derbyshire, pleaded with the government to look again, stressing that most farmers are "not wealthy land barons" but operate on tiny profit margins. Terry Jermy, MP for South West Norfolk, echoed this, stating the Budget failed to tackle "abuse by the celebrities and the billionaires" who purchase farmland primarily to avoid a full inheritance tax bill.
Despite the backlash, Treasury minister James Murray defended the reforms. He insisted the changes, which include making any unused £1 million APR allowance transferable between spouses and civil partners, represent a "fair way forward". He argued they provide generous relief while raising necessary funds for public finances.
The Vote and the Path Ahead
Ultimately, the government's plans were supported by the House. MPs voted 327 to 182, a majority of 145, in favour of the Budget resolution. However, the significant rebellion and heartfelt appeals from rural constituencies signal ongoing turbulence. The government now faces the challenge of implementing a tax it claims is fair, while attempting to rebuild trust with a farming community that feels betrayed and fears for its future.
