Labour MP Markus Campbell-Savours has been suspended from the parliamentary party after openly rebelling against Chancellor Rachel Reeves's plans to impose inheritance tax on agricultural property.
A Budget Rebellion Splits Labour
The dramatic suspension followed a Commons vote on Tuesday 3rd December 2025, where the backbencher voted against the government's Budget resolution. Dozens of other Labour MPs chose to abstain, delivering a fresh blow to the Chancellor and highlighting deep internal divisions over the so-called 'family farm tax'. The government's measures ultimately passed with a majority of 145, securing 327 votes to 182.
Mr Campbell-Savours told the House he had "deep concerns" about the changes to Agricultural Property Relief (APR). He revealed that during the election campaign, he and other Labour candidates had reassured farmers based on public commitments from the then shadow environment secretary that APR would not be touched. "I was one of those Labour candidates, and it's for that reason I'll be voting against," he stated, adding he could not break his word to his community.
Farmers Fear 'Inhumane' Impact
The controversy stems from last year's budget, which proposed a 20% inheritance tax rate on agricultural land and businesses valued over £1 million. Despite a concession in this Budget making any unused £1 million APR allowance transferable between spouses, the farming community remains fiercely opposed.
Labour backbenchers echoed the fears of groups like the National Farming Union (NFU). Samantha Niblett, MP for South Derbyshire, argued that most farmers are "not wealthy land barons" but operate on tiny profit margins, now facing unexpected bills. Terry Jermy, MP for South West Norfolk, criticised the policy for failing to tackle "abuse by the celebrities and the billionaires" who buy farmland for tax avoidance.
NFU President Tom Bradshaw called the policy "inhumane and cruel," warning it traps the elderly and terminally ill with no ability to plan. He praised the Labour MPs who rebelled or abstained as true representatives of the rural working people.
Government Defends 'Fair Way Forward'
Facing intense questioning in the Commons, Treasury Minister James Murray defended the reforms. He insisted the changes represented a "fair way forward" and a generous relief that also raised money for public finances. He highlighted the spousal transfer concession as a key improvement, maintaining the Chancellor had made fair choices to protect public services.
However, with the Prime Minister Sir Keir Starmer facing criticism and the trust of the farming community said to be broken, the rebellion over agricultural inheritance tax signals a significant rural challenge for the Labour government that shows no sign of abating.
