MP to 'keep pressure up' on farming inheritance tax

Derbyshire Dales MP John Whitby has promised to keep pushing the government to rethink its plans to tax inherited farm land.

He and other fellow Labour backbenchers from rural areas abstained in a post-Budget vote on the changes last week. Another Labour MP, Markus Campbell-Savours, was suspended after voting against the government.

Ministers have said taxing estates worth more than £1m at a rate of 20% is a fair way to raise money to fund public services.

But the change has prompted widespread protests, with many farmers arguing it will make their businesses unviable.

Whitby, who is a member of the Rural Research Group of Labour backbenchers, which has been campaigning for changes, told the BBC he was "frustrated, absolutely" that behind-the-scenes lobbying had not been more successful.

He said he had had one-to-one meetings with the prime minister, the chancellor, the environment secretary and civil servants about the issue.

Whitby said "there was a concession" from the government as it was announced in the Budget that unused parts of the £1m allowance could be transferred to spouses and civil partners.

"I appreciate it's not enough. It's helpful, definitely, and a sign that some of the lobbying we did has made some difference.

"But we'd like to go further," he added.

The government first announced the changes in last year's Budget and they are due to come into effect in April 2026.

The Treasury has previously insisted "three quarters of estates will continue to pay no inheritance tax at all", while the remaining quarter would "pay half the inheritance tax that most people pay".

Ministers have also said payments can be spread over 10 years, interest-free.

However, Whitby said the change would affect the "vast majority of productive farmers".

"I've got no problem with inheritance tax as a concept. But we're a progressive party, we should be taxing those who can afford to pay it. We are very concerned that farmers can't afford to pay it," he said.

Asked why he had abstained rather than voting against the policy, Whitby, who has a majority of just 350, said he did not want to lose the whip.

"I do feel genuinely that I can be more useful to my constituents and the farmers if I'm in the tent.

"It's about doing the right thing. I may be here for one term, I don't know. I would rather do what is right," he said.

Two other Labour MPs from the county, Mid Derbyshire's Jonathan Davies and South Derbyshire's Samantha Niblett, also chose not to support the measure.

Niblett said the government had "lost the trust of our farmers".

The National Farmers' Union, which opposes the changes, had been urging Labour MPs to abstain.

NFU President Tom Bradshaw said MPs who abstained showed "they cannot support this pernicious policy".

The Conservatives and Lib Dems both oppose the government's proposals, with Tory shadow environment secretary Victoria Atkins saying she commended the Labour MPs who did not vote for the measure in the Commons.

Lib Dem environment spokesperson Tim Farron said: "Tinkering around the edges of the family farm tax will do nothing to reduce the devastating impact on many family businesses and will lead to many closing their farm gates for the last time."

And Sarah Dines, former Conservative MP for Derbyshire Dales, said: "Too bad our Labour MP did not have the courage to vote against the family farm tax, letting down our rural constituency.

"I had hoped for more on this seminal issue for the Dales."

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