Kemi Badenoch, the new leader of the Conservative Party, has vowed to reverse Labour’s “cruel family farms tax” if the Tories return to power. Speaking at her first Prime Minister’s Questions, Mrs Badenoch pressed Sir Keir Starmer on the impact of the Chancellor’s inheritance tax changes on the agricultural sector.
The Tory leader told the House of Commons: “What does he say to farmers who are facing uncertainty about their futures as a result of the increased taxes announced by the Chancellor? I am very clear that we would reverse Labour’s cruel family farms tax. What can he say now to reassure the farming community who provide security for the whole nation?”
Sir Keir responded by highlighting the £5 billion in additional funding for farming over the next two years included in last week’s Budget. However, he acknowledged that the “vast, vast majority of farmers will be unaffected” by the inheritance tax changes.
Under the Budget measures unveiled last week, land holdings and other farming assets worth more than £1 million will be subject to a 20 per cent death duty from April 2026. Agricultural land was previously exempt from inheritance tax to encourage farmers to pass on land to their children.
Farmers have warned that Labour’s tax raid will force asset-rich but cash-poor families to sell up in order to afford the tax bill. Mrs Badenoch made clear the Conservatives would take a different approach, pledging to reverse the policy if they return to government.
