Reeves hit with Labour revolt on farms tax raid as backlash mounts against Budget
Rachel Reeves has been hit with a Labour revolt on the farms tax as anxiety rises over her Budget.
A slew of MPs pleaded with the government to review its inheritance tax assault as the fiscal package went through the Commons last night.
Labour backbencher Markus Campbell-Savours actively rebelled to vote against the plan, while dozens more appear to have deliberately abstained.
Although the scale of the government's majority meant the measure was not in any real danger of defeat, it underlines the growing unrest among Keir Starmer's troops.
MPs argued most farmers are 'not wealthy land barons', and the the policy failed to tackle 'abuse by the celebrities and the billionaires' who buy farmland to avoid paying a full inheritance tax bill.
But Treasury minister James Murray insisted the changes are a 'fair way forward'.
Labour backbencher Markus Campbell-Savours actively rebelled to vote against the plan, while dozens more appear to have deliberately abstained
A slew of MPs pleaded with the government to review its inheritance tax assault as the fiscal package went through the Commons last night
Speaking in the Budget debate, Mr Campbell-Savours - who represents Penrith and Solway - said he had deep concerns about the proposed changes to agricultural property relief (APR).
'Members across the House have made the case against these changes, changes which leave many, not least elderly farmers, yet to make arrangements to transfer assets, devastated at the impact on their family farms,' he said.
'Many farmers feared this was coming. Some transferred in advance. Others contacted Labour candidates who reassured them, based on public commitments from the then shadow secretary of state for Defra, that APR would not be touched.
'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 said he wants to be able to walk around his community 'knowing I did all I could for them', and could not do so if he broke his word.
MPs voted 327 to 182, majority 145, in support of the Government's plans.
In the Budget, the Chancellor announced that any of a £1million APR and business property relief allowance that goes unused will be transferable between spouses and civil partners.
But farming communities have been up in arms about the raid, which introduces a 20 per cent rate on agricultural land and businesses worth more than £1 million.
Samantha Niblett, Labour MP for South Derbyshire, welcomed concessions for married couples in the Budget but said: 'I do plead with the Government to look again at APR inheritance tax.
'Most farmers are not wealthy land barons, they live hand to mouth on tiny, sometimes non-existent profit margins.
'Many were explicitly advised not to hand over their farm to children, (but) now face enormous unexpected tax bills.
'We must acknowledge a difficult truth: we have lost the trust of our farmers, and they deserve our utmost respect, our honesty and our unwavering support.'
Terry Jermy, Labour MP for South West Norfolk, said Ms Reeves's Budget has failed to tackle the 'abuse by the celebrities and the billionaires' who buy farmland to avoid paying a full inheritance tax bill.
Labour MP Chris Hinchliff asked Treasury minister James Murray whether the Government would 'take immediate action' if changes to agricultural property relief led to farm closures.
Mr Murray replied: 'The changes that we've set out to agricultural property relief are a fair way forward.
But farming communities have been up in arms about Rachel Reeves' raid, which introduces a 20 per cent rate on agricultural land and businesses worth more than £1 million
'They represent generous relief to people whilst raising money for the public finances, and at this Budget, the Chancellor announced that any unused £1 million allowance for the 100 per cent rate of agricultural property relief and business property relief will be transferable between spouses and civil partners.'
Mr Murray insisted the Chancellor 'took fair choices on tax, that protected investment in our public services and that made our economy more secure'.
Before the Budget vote, the National Farming Union (NFU) called on Labour MPs to abstain and 'show that they truly back the working people of the countryside'.
NFU president Tom Bradshaw said: 'Without change, the family farm tax will trap the most vulnerable members of our community, the elderly and terminally ill, with no ability to plan. It's inhumane and it's cruel.'
