Labour MP Henry Tufnell has openly opposed his party’s plan to impose inheritance tax on farms, warning it could disproportionately impact small, family-run holdings.
His stance follows mounting protests from farmers, business leaders, and supermarkets, as well as concerns raised by fellow MPs ahead of an upcoming vote on the policy.
The proposed removal of Agricultural Property Relief (APR), set to take effect in April 2026, was announced by Chancellor Rachel Reeves as a measure to generate £500 million annually.
However, critics argue that the change could disrupt rural economies, raise food security concerns, and put older farmers in difficult financial positions.
MP Calls for Amendments as Rural Concerns Intensify
Tufnell, the newly elected MP for South and Mid-Pembrokeshire, has urged the government to reconsider aspects of the policy. Speaking to Sky News, he stressed that many affected farms are not large estates but small, family-owned operations.
He suggested increasing the £1 million threshold and introducing an amnesty or transition period for older farmers, who may struggle to transfer their holdings in time to avoid the tax.
The issue has resonated across rural Labour constituencies. Marcus Campbell-Savours, MP for Penrith and Solway, has vowed to vote against the measure unless it is significantly amended. Meanwhile, Steve Witherden, MP for Montgomeryshire and Glyndwr, previously described the proposal as “the straw that broke the camel’s back”.
According to the National Farmers’ Union (NFU), the tax could affect tens of thousands of farms, despite government claims that the top 7% of relief claimants account for 40% of total exemptions.
Supermarkets, including Tesco, Aldi, and Lidl, have also expressed concerns about the potential impact on food supply chains and agricultural investment.
Labour’s Position Under Scrutiny Amid Political Tensions
The backlash places pressure on Keir Starmer and Rachel Reeves, who have defended the policy despite protests in Westminster and across rural areas.
The Chancellor insists the move is designed to prevent tax loopholes benefiting wealthy landowners, rather than penalising smaller farms. According to government estimates, farms owned by couples with children could still qualify for exemptions up to £3 million.
However, political tensions have been heightened by accusations of inconsistency within Labour ranks. During the election campaign, Tufnell assured voters there were no planned changes to inheritance tax.
Additionally, reports surfaced that a portion of his family’s Gloucestershire farm was transferred to his brother before the policy was announced, sparking scrutiny. He has dismissed any suggestion of prior knowledge as “completely preposterous“.
With the tax reform vote nearing, dissent within Labour is becoming more evident. Reports suggest that around 30 rural MPs have engaged in discussions with Treasury ministers, hinting at potential divisions within the party.
