A newly elected Labour MP has gone public with his objections to the government’s proposed farm tax, saying it would “penalise” small farms in rural communities.
Henry Tufnell, MP for South and Mid-Pembrokeshire, told Sky News he and other colleagues had informed ministers it’s not only wealthy landowners who would be affected by the decision to levy inheritance tax on farms worth more than £1m.
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It comes as farmers gather in central London again today, although without their tractors, to protest the changes.
The controversial decision to remove Agricultural Property Relief was announced by Rachel Reeves at last year’s budget and is due to take effect in April 2026.
It has seen a growing backlash from farmers, as well as supermarkets Tesco, Aldi and Lidl, who have raised concerns about food security, and business group the CBI, which last week said it would hit growth.
Mr Tufnell is the third Labour MP to speak out, and it’s understood more could follow, as a vote on the change looms in the coming months.
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‘We have to stand up’
After making representations to Treasury ministers behind the scenes, Mr Tufnell is calling for the threshold for levying the tax to be raised.
He also wants an amnesty or transition period for older farmers who may not be able to pass farms on to their children in time to avoid it.
“Me and a number of other MPs who are part of this new, broader, coalition within the Labour Party have to stand up and inform government that this is affecting our constituents,” he said.
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Farmers ‘critical’ to boost growth
“It’s affecting the fabric of the society within those rural communities and that’s why we were elected,” he added.
He said the tax relief for farmers had “encouraged them to die in their boots” – and farmers in their 70s and 80s had been put “in this incredibly difficult position” as they could not plan for the change.
“The policy needs to be improved,” he added, saying farmers are “critical” not just for the government’s growth agenda, but also hitting its environmental targets.
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What’s the beef with farmers’ inheritance tax?
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A broken election promise?
Mr Tufnell, 32, narrowly won the seat from Conservative former cabinet minister Stephen Crabb, having told constituents during the election campaign that no changes to inheritance tax were planned.
His is one of 59 rural constituencies which are among the 100 most marginal wins for Labour.
The MP, who lives in Pembrokeshire, has faced questions after it was revealed last year that a portion of the land on the 2,200 acre Gloucestershire farm belonging to his parents Mark and Jane, worth a reported £20m, had been passed to his brother Albermarle just before the budget.
It means if Mark Tufnell lives for another seven years, no inheritance tax – which would be levied at a rate of 20% – would be paid on that part.
Mr Tufnell reiterated to Sky News he had no inkling of the change, which was not in Labour’s manifesto, saying it’s “completely preposterous” to suggest a backbencher would know in advance.
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‘Dyson and Clarkson should pay more’
Mr Tufnell couldn’t say where the threshold should be set, but said it’s something the government should discuss with farming unions.
The government says with tax reliefs that apply to farms owned by couples with children, the threshold could be up to £3m.
“I completely agree James Dyson and Jeremy Clarkson should pay more,” he said.
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‘Huge concerns’
The MP acknowledged there have been “issues” with people “dodging tax” and around how the relief “artificially inflates the price of land”.
“But I’ve been engaging extensively with my constituents in Pembrokeshire, speaking to individual farmers in beef, dairy, poultry, on small-scale family farms, and they’ve got huge concerns,” he said.
“It’s not about me and my family. I appreciate that I come from a farming family. But fundamentally I’m standing up for my constituents on a constituency matter and that’s the issue here.”
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‘The straw that broke the camel’s back’
A group of some 30 rural Labour MPs deeply concerned about the impact of the policy are understood to have held meetings with Treasury ministers in the past month.
Steve Witherden, MP for Montgomeryshire and Glyndwr, and on the left of the party, said in January the proposed changes “feel like the straw that broke the camel’s back”.
Marcus Campbell-Savours, MP for the rural constituency of Penrith and Solway, said he planned to vote against the government’s plans in their current form and would seek “important amendments.”
The chancellor insisted at the October budget that the changes, which the government estimated would save £500m a year, would “ensure we continue to protect family farms”.
She said the top of 7% of claims currently account for 40% of the total tax relief, but the National Farmers Union claim the figures are “misleading” and tens of thousands of farms could be affected.
