Rachel Reeves Faces Labour’s Rural Revolt Over Farmers’ Inheritance Tax

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ago 49 minutes

Rachel Reeves Faces Labour’s Rural Revolt Over Farmers’ Inheritance Tax

Chancellor Rachel Reeves is facing significant opposition from Labour MPs in rural areas regarding inheritance tax on farmers. The debate centers around a proposed 20% tax on farm estates valued over £1 million, set to take effect in April. This policy has ignited protests in London, drawing thousands of farmers who are concerned about the impact on small family farms.

Labour’s Rural MPs Demand a U-Turn

During the closing day of a Commons budget debate, Labour backbenchers called for a reconsideration of the controversial inheritance tax proposal. Many MPs abstained from voting on the measure, reflecting growing dissent within the party.

Voting Outcomes and Impacts

Labour’s vote dropped from 371 in the initial tax vote to 327.
The government won the vote 327-182, securing a majority of 145.

Among those who voted against the tax were MP Markus Campbell-Savours and multiple Conservative members. His participation in the vote indicated the seriousness of the concerns held by rural representatives.

Pressure from the National Farmers Union

The National Farmers Union (NFU) issued a call for Labour MPs to abstain from the vote in order to challenge the policy effectively. NFU President Tom Bradshaw stated that it is crucial for rural representatives to voice the sentiments of their constituents.

Bradshaw emphasized the importance of taking action against the tax, which disproportionately affects vulnerable farmers. He argued that it is essential for the Chancellor and the Prime Minister to heed the message from these rural MPs.

Concerns Over Agricultural Property Relief

Deep concerns about changes to agricultural property relief (APR) were voiced during the debate. Many farmers, particularly the elderly, express anxiety about the implications of the tax on transferring farm assets to the next generation.

Samantha Niblett, MP for South Derbyshire, highlighted the precarious financial situation many farmers face. She pointed out that most farmers do not live lavishly, but rather struggle with minimal profit margins. Niblett urged the government to reconsider the APR inheritance tax, acknowledging that the party has lost the trust of the farming community.

Absent MPs from Rural Areas

Several Labour MPs from rural constituencies did not vote during the key decision, including:

Tonia Antoniazzi (Gower)
Julia Buckley (Shrewsbury)
Jonathan Davies (Mid Derbyshire)
Maya Ellis (Ribble Valley)
Anna Gelderd (South East Cornwall)
Ben Goldsborough (South Norfolk)
Alison Hume (Scarborough and Whitby)
Terry Jermy (South West Norfolk)
Jayne Kirkham (Truro and Falmouth)
Noah Law (St Austell and Newquay)
Perran Moon (Camborne and Redruth)
Samantha Niblett (South Derbyshire)
Jenny Riddell-Carpenter (Suffolk Coastal)
Henry Tufnell (Mid and South Pembrokeshire)
John Whitby (Derbyshire Dales)
Steve Witherden (Montgomeryshire and Glyndwr)
Amanda Hack (North West Leicestershire)

The rising dissent among rural Labour MPs indicates a pivotal moment in the party’s approach to farming policies. As the discussions continue, the Chancellor will need to address the concerns of a constituency that feels increasingly alienated by proposed legislation.