Labour rebels oppose farm inheritance tax change, citing broken promises and rural harm.

Rural Labour MPs, including Markus Campbell-Savours and Tim Farron, rebelled against Chancellor Rachel Reeves’ plan to limit inheritance tax relief on farms to £1 million, citing broken election promises and fears of harming struggling family farms. The policy, which imposes a 20% tax on estates over that threshold, passed 327 to 182, but dozens of Labour MPs abstained or opposed it, highlighting deep party divisions. The National Farmers’ Union and farming groups warn the change could force land sales, threaten food security, and damage rural livelihoods, especially for low-income farmers. The Office for Budget Responsibility’s revised fiscal outlook has also cast doubt on the policy’s financial justification, fueling calls for reconsideration.