Labour MPs have refused to support Chancellor Rachel Reeves' proposed increase in inheritance tax on family farms, with 32 abstaining in a House of Commons vote on Tuesday. The motion, which aimed to impose a 20% inheritance tax rate on agricultural assets above £1 million, passed with 327 MPs in favour, down from 371 who supported a previous proposal.
The rebellion signals unrest on the backbenches, though the vote does not formally change the law. Markus Campbell-Savours, Labour MP for Penrith and Solway, was among those who voted against the motion. The National Farmers' Union president, Tom Bradshaw, said the rebellious MPs represent 'the working people of the countryside'.
The policy has sparked concern among farmers who fear it could force them to sell land to meet rising costs. A protest in London last week led to five arrests after police imposed conditions on tractor drivers. In November 2024, 78-year-old farmer John Charlesworth took his own life, citing fear of rising inheritance taxes as a contributing factor.
Shadow environment secretary Victoria Atkins commended Labour MPs who opposed the tax, while noting that 314 Labour MPs, including the Defra Secretary, voted for what she called a 'death tax' that could lead to more farm closures and higher food prices.
