Labour MP suspended after rebelling over farmer’s tax in Budget vote

Markus Campbell-Savours loses whip for voting against measure in Chancellor’s Finance Bill

A Labour MP has been suspended from the party after voting against the Chancellor’s family farm tax.

Markus Campbell-Savours, the MP for Penrith and Solway, lost the whip after he rebelled against Rachel Reeves’s plans to end the inheritance tax exemption on farms worth more than £1m.

He was the only Labour MP to vote against the proposals in the Chancellor’s Finance Bill on Tuesday night, but more than 30 of his party colleagues abstained.

In the debate, Mr Campbell-Savours said: “There remain deep concerns about the proposed changes to agricultural property relief (APR).

“Changes which leave many, not least elderly farmers, yet to make arrangements to transfer assets, devastated at the impact on their family farms.”

Kemi Badenoch, the Conservative Party leader, wrote on X:

Tom Bradshaw, the president of the National Farmers’ Union, said: “The MPs who have shown their support are the rural representatives of the Labour Party. They represent the working people of the countryside and have spoken up on behalf of their constituents.”

Mr Bradshaw demanded that the Chancellor take notice of the rebellion and added: “The next step is removing the impact of this unjust and unfair policy on the most vulnerable members of our community.”

MPs were asked to vote on sections of the Finance Bill on Tuesday. The vote was indicative of support and does not enact any changes in the law. However, the rebellion was a clear signal of unrest on the backbenches over the policy.

‘I’m not prepared to break my word’

In the vote on the change to APR, which was the fifth out of seven votes, 327 MPs backed the measure. That was a sharp fall from the 371 who had voted in favour of the previous proposal.

In the run-up to the debate, Mr Campbell-Savours said: “I’ve spent the past few weeks speaking with farmers in my constituency trying to understand the full impact of the inheritance tax proposals, knowing that I have months left to engage Defra [the Department for Environment, Food and Rural Affairs] and the Treasury and seek important amendments.

Let me be clear, if today was the real vote, I would vote against the Government’s plans. I’m no rebel. I’m a moderate – but during the election, I read what I thought were assurances from my party that we had no plans to introduce changes to APR.

“On this basis, I reassured farmers in my constituency that we would not. Now I simply am not prepared to break my word.

During the closing day of the Commons debate on the Budget, rural MPs from Labour’s backbenches demanded a rethink on subjecting British agriculture to inheritance tax.

Labour MPs who abstained included Henry Tuffnell, who represents Mid and South Pembrokeshire, and Samantha Niblett, of South Derbyshire.

In the wake of the Budget, Ms Niblett urged ministers to “look again at APR inheritance tax. Most farmers are not wealthy land barons, they live hand to mouth on tiny, sometimes non-existent profit margins”.

The plan to impose a 20pc inheritance tax rate on agricultural assets worth over £1m has proved controversial. Many farmers fear that their businesses will not survive the tax rise as they will have to sell land to pay tax bills.

Last week, farmers protested in London against the measures. Five were arrested after police withdrew permission for them to drive their tractors to Westminster with less than 24 hours’ notice.

‘No one’s listening to the farmers’

Victoria Atkins, the shadow environment secretary, described Mr Campbell-Savours as the “only Labour MP brave enough to vote against the family farm and family business tax”.

She added: “[Sir Keir Starmer] has now suspended him from Labour. They care more about their party than country.”

The rebellion comes as the agricultural community braces for the introduction of the new tax regime next April. In November 2024, farmer John Charlesworth, 78, of Barnsley, South Yorkshire, took his own life, with his family citing fear of inheritance tax increases as a contributing factor.

Graham Miles, the agricultural chaplain for Suffolk, said he hears regularly from elderly farmers who tell him their families “would be better off if I wasn’t here”.

He has asked Emma Reynolds, the Environment Secretary, to visit the farmers he works with to hear their grievances, but Defra has yet to confirm that she will come.

Mr Miles said: “No one’s actually listening to the farmers. They just want to have one of the ministers to come down and to talk to them and put their points across so the Government can see first-hand what’s going on.”

A government spokesman said: “We are deeply saddened by these tragedies within the farming community. We recognise that farmers and rural communities are facing immense pressures, and we are committed to ensuring they have access to the support they need, including through setting up mental health hubs.

“Ministers have been engaging with farming groups and representatives throughout the year to listen to their concerns and understand the difficulties they face.

“We remain committed to supporting British farmers and rural communities through these challenging times to ensure a strong and sustainable future.”