Farmer dismay as most Labour MPs back ‘family farm tax’

Farm leaders and opposition MPs have expressed their dismay at Labour MPs who voted en masse in Westminster last night (2 December) in favour of the “family farm tax”, though a significant number did not register a vote.

The vote for so-called “Budget Resolution No 50″ – limiting agricultural and business property relief from inheritance tax – was held as part of a debate on the Finance Bill, which is making its way through parliament.

See also: Farm IHT reforms face fresh scrutiny after deficit shrinks

Despite last-minute pleas from the NFU and other industry stakeholders for Labour MPs to at least abstain in the vote, the resolution was passed by a massive 322 votes for to 182 against.

Just one Labour MP – Markus Campbell-Savours, who represents the rural constituency of Penrith and Solway – voted against the government.

There were, however, 86 Labour MPs who did not register a vote, and the NFU estimates that 30 of them did so as a conscious decision to abstain.

MPs from all other parties (except Sinn Fein, which never participates in parliament) voted against the tax, due to be levied at 20% on farm assets above £1m from next April.

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Commenting on the vote, NFU president Tom Bradshaw said: “I’d like to thank all the Labour MPs who have stood up to show that they cannot support this pernicious policy.

“These MPs are the rural representatives of the Labour Party. They represent the working people of the countryside and have spoken up on behalf of their constituents. It is vital that the chancellor and prime minister listen to the clear message they have delivered this evening.

“The next step in the fight against the family farm tax is removing the elderly and terminally ill from the eye of the storm of this unjust and unfair policy.”

Conservative shadow Defra secretary Victoria Atkins also commended those Labour MPs who did not vote for the family farm tax.

“Shockingly, 314 Labour MPs, including the current Defra secretary of state [Emma Reynolds]  and the farming minister [Dame Angela Eagle], put their own jobs first and voted for the death tax, more farm closures and higher food prices,” she said. 

“Trust in this weak government has crumbled.”

Countryside Alliance director of external affairs Mo Metcalf-Fisher said rural constituents with Labour MPs would expect them to “stand up and be counted” when government policy threatens to negatively affect the countryside.

“It is right that a significant number chose not to back the government tonight,” he said.

“If the Labour Party are serious about holding on to their rural seats, they are going to need to urgently reset their relationship with the countryside and pursue policies that actually help rural people.”

Liberal Democrat rural spokesman Tim Farron said he was “gutted” that so many Labour MPs toed the party line.

“The tax will hammer many farmers earning below the minimum wage and will reduce the amount of food the UK can produce. It is cruel and stupid.”

The Finance Bill still has several stages of parliamentary process to complete before it takes effect next April, providing some scope for amendments to be considered.