‘Town hall rebellion’ against the ‘family farm tax’ GROWS ahead of crunch vote in Commons today
Local authorities across Britian are condemning Labour’s ‘family farm tax’ in what is being called a ‘town hall rebellion’, piling the pressure on Labour MPs ahead of a crunch vote in the Commons today.
Cornwall and Buckinghamshire Councils have already passed motions rejecting Chancellor Reeves’ plans to slap 20 per cent death duties on farmers’ assets over £1million.
The move prompted 20,000 farmers to gridlock central London on November 19 in protest, but the government doubled down on its position arguing it was a ‘fair and balanced’ approach to fill the £22billion black hole.
Fallout from the policy has rumbled on and, in a worrying turn of events for Labour, local authorities are taking it upon themselves to publicly condemn the tax and lobby for its scrapping.
This week North Northamptonshire Council and the London Assembly will debate motions to drop the ‘family farm tax’, while Suffolk and Portsmouth’s local authorities will do the same later this month.
While these bodies have no power over UK government legislation, they represent yet another headache for Labour on the issue of farmers’ inheritance tax.
Critics have wondered whether the £500million per year the Treasury hopes to raise from the policy is worth the negative press, with some pointing out that figure will only fund the NHS for one day and five hours and is 50 times smaller than their Employers’ NI hike.
The Countryside Alliance, a rural campaign group opposing the tax, describe the ‘town hall rebellion’ as a ‘critical stand for the future of British agriculture.’
Its director of external affairs, Mo Metcalf-Fisher, said: “These changes [to farmers’ inheritance tax arrangements] present a major threat to the future of British farming.
“We are grateful to councils taking a stand and urge Assembly Members and councilors regardless of political party to add their voices to the growing opposition.
“There is still time for the Chancellor, Rachel Reeves, and the Treasury to rethink this disastrous policy.”
This comes as Kemi Badenoch’s Conservatives use their opposition day debate today to put forward a motion that would cancel controversial changes to agricultural property relief announced at the Budget.
Opposition day votes are not binding but provide an opportunity for debate on Government policy.
The vote will force Labour MPs in rural constituencies- many who will have had no idea of Reeves’ inheritance tax raid before the budget was released- to support or oppose the raid publicly.
By supporting it, they risk enraging rural constituents and damaging often slim majorities, but the alternative is to defy the government and risk having the Labour whip withdrawn, something Starmer has shown he is not afraid to do.
Susan Hall, a Conservative member of the London Assembly, has urged her Assembly colleagues to support her motion ahead of a vote on Thursday 5 December.
The motion calls on mayor Sadiq Khan and the Greater London Authority to lobby the Labour government to reinstate 100% reliefs under agricultural property relief (APR) and business property relief (BPR).
Ms Hall criticised the tax, stating: “The family farm tax threatens the future of British farming and our food security.
“Despite all the warnings from rural stakeholders and experts, Rachel Reeves and the Treasury just aren’t listening.
“Farmers work tirelessly day-in, day-out, in all weather conditions, and against countless barriers, to put food on the plates of family dinner tables and restaurants across London.
“Our capital is dependent on farmers to help fuel its citizens with their healthy, seasonal, and sustainable produce.
“I hope that all Assembly Members, regardless of political party, back this motion to send Rachel Reeves a message, before it’s too late.”
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There are currently 11 Labour members, eight Conservatives, three Green, two Liberal Democrats and one Reform.
This comes after another protest has been scheduled for December 11 in the UK’s four capitals.
Tractors are set to descend on Whitehall once more with the lead campaigner, warning ‘expect chaos’ and ‘nothing is off limits’.
Responding, a Defra spokesperson said: “Our commitment to farmers remains steadfast – we have committed £5 billion to the farming budget over two years, including more money than ever for sustainable food production, and we are developing a 25-year farming roadmap, focusing on how to make the sector more profitable in the decades to come.
“Our reform to Agricultural and Business Property Relief will impact around 500 estates a year.
“For these estates, inheritance tax will be at half the rate paid by others, with 10 years to pay the liability back interest free.
“This is a fair and balanced approach which fixes the public services we all rely on.”