Labour MP Markus Campbell-Savours suspended after rebelling against Reeves’ tractor tax
Labor MP Markus Campbell-Savours has been suspended after rebelling against the government’s plans to impose an inheritance tax on farmers.
Dozens of Labor MPs abstained from the Commons vote, while Mr Campbell-Savours, who backed down, voted against, voicing “deep concerns” about the impact of the measures on farmers.
It comes after the National Farming Union (NFU) called on Labor MPs to abstain from the vote and “show that they truly support rural workers”.
Backbenchers argued that most farmers were “not rich land barons” and said the measure failed to prevent “exploitation by celebrities and billionaires” who buy farmland to avoid paying the full inheritance tax bill.
But Treasury Secretary James Murray insisted the government’s changes to the Budget were “fair progress”.
MPs voted in support of the government’s plans by 327 votes to 182, with a majority of 145.
Speaking at the House of Commons Budget debate on Tuesday, Mr Campbell-Savours said: “There are deep concerns about proposed changes to agricultural property relief (APR).
“Members in Parliament have filed a lawsuit against these changes, which have resulted in many people, particularly older farmers, not yet making arrangements to transfer assets due to the impact on family farms.
“Many farmers feared this would happen. Some transferred in advance. Others contacted Labor candidates who reassured them, based on public commitments from the then Defra shadow secretary of state that APR would remain untouched.
“I was also a Labor candidate and will therefore be voting against the Budget resolution that made these changes possible.”
Mr. Campbell-Savours said he wanted to be able to move around his community “knowing that I did what I could for them” and that he couldn’t do that if he didn’t keep his word.
In the Budget the chancellor announced that £1 million of unused APR and business property relief allowance could be transferred between spouses and civil partners.
But the move has not stopped criticism from the farming community, which has fiercely opposed the changes since they were proposed in last year’s budget, with the introduction of a 20 per cent rate for farmland and businesses worth more than £1 million.
Samantha Niblett, Labor MP for South Derbyshire, welcomed concessions to married couples in the Budget but said: “I would like to ask the government to take another look at APR inheritance tax. Most farmers are not rich land barons; they scrape by on small, sometimes non-existent profit margins. Many have been expressly advised not to pass their farms on to children (but) now they face huge windfall tax bills.”
South West Norfolk Labor MP Terry Jermy said Ms Reeves’ Budget failed to tackle the “exploitation of celebrities and billionaires” who buy farmland to avoid paying the full inheritance tax bill.
Chris Hinchliff, Labor MP for North East Hertfordshire, asked Treasurer James Murray whether the government would “take immediate action” if changes to agricultural property relief lead to farm closures.
Before the vote, NFU president Tom Bradshaw said: “Without change, the family farm tax will trap the most vulnerable members of our community, the elderly and the terminally ill with no ability to plan. This is inhumane and cruel.”
The whip was reinstated last month after four Labor MPs – Neil Duncan-Jordan, Chris Hinchliff, Brian Leishman and Rachael Maskell – were suspended for repeated rebellions against the government.
The backbenchers were suspended from office after all four voted against Labour’s welfare reforms, as part of a wider rebellion that led to the changes being delayed in July.
At the time, Ms Maskell, MP for York Central, claimed she was suspended from office for “defending my constituents” over the plans.
