Starmer taken to task by Labour MP over farm tax

Sir Keir Starmer was confronted by a Labour MP over the government’s proposed inheritance tax changes for farming during a tense Commons Liaison Committee session, exposing mounting unrest on Labour’s rural benches over the “family farm tax”.

Lancaster and Wyre MP Cat Smith warned the prime minister that some farmers with terminal illnesses were contemplating taking their own lives ahead of the removal of key inheritance tax (IHT) reliefs.

She told MPs rural communities had “put their trust in Labour for the very first time in a very long time” at the 2024 election, only to feel “misled” by changes announced months later.

See also: Farmers to rally in London over IHT as Finance Bill returns

“Elderly farmers, or farmers with a terminal diagnosis, are in a position whereby if they die before April, their farm will pass to the next generation with no tax implications,” she said.

Ms Smith asked whether Sir Keir was “aware that some farmers who have a terminal diagnosis now are actively planning to expedite their own deaths” before the reforms take effect.

Cat Smith questioned the prime minister © Parliament TV

The prime minister replied: “I’ve had discussions with a number of individuals who have drawn all manner of things to my attention,” adding: “No, of course. But governments have to bring about sensible reform.”

He insisted the changes were justified, telling MPs: “I do understand the concern, and I met with the president of the NFU just last week, as I’ve met with him before, to run through the particular concerns they have.

“I do think on agricultural property relief, there had to be sensible reform. And I think this is sensible reform.”

Why, oh why, will the Prime Minister not change course?

Parliamentary Committees, MPs, farming stakeholders & our hard working farming community are all calling for his disastrous Family Farm Tax to be scrapped.

But the PM remains determined to push on – despite all warnings. pic.twitter.com/4MHECtFVxk

— Robbie Moore MP (@_RobbieMoore) December 15, 2025

Liberal Democrat MP Alistair Carmichael intervened, warning: “Nobody should be left feeling – as Cat Smith has just described – that they would be better off dying between now and next April.”

Challenging Sir Keir to drop the policy, he added: “You don’t have to listen to me… But why do you not listen to your own party colleagues?”

Sir Keir responded: “I do listen to party colleagues all the time.”

Alistair Carmichael © parliament TV

NFU meeting

The clash came after NFU president Tom Bradshaw met the prime minister on Friday (12 December).

Following that encounter, Mr Bradshaw said: “From Friday’s meeting, it is clear to me the prime minister is listening to the clear messages he is hearing from Labour MPs, and their constituents.

“There is still time to take action to remove those most at risk from the eye of this storm.”

However, anger within the farming community continues to grow.

Labour MPs ‘outed’

New lobbying group Farmers Take Action has begun publicly naming rural Labour MPs who voted with the government in favour of introducing the inheritance tax changes, warning that backing the policy risks damaging family farming and national food security.

Under the reforms, due to take effect from April 2026, agricultural landowners will face inheritance tax at an effective rate of up to 20% on estates above a £1m threshold.

With farmer protests set to continue in London today as the Finance Bill, which contains legislation to introduce the farm tax, returns to Parliament for its second reading, pressure is mounting on the prime minister to rethink a policy that many farmers believe threatens the future of the family farm.