Keir Starmer faces town hall rebellions over ‘unnecessary’ inheritance tax raid on farmers

Keir Starmer has come under fire for the controversial inheritance tax raid on farmers (Image: Getty)

Town halls across Britain have rebelled against the family farm tax imposed by Rachel Reeves at the Budget.

Under the changes, which come into force in April 2026, farms worth more than £1million — which are currently exempt from inheritance tax — will be subject to a 20% levy.

Several of the 30 councils that have voted through motions opposing the hike include areas with newly elected Labour MPs.

Councillors in Northumberland, Suffolk, and Norfolk are among those putting pressure on their Labour representatives.

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Mo Metcalf-Fisher, director of external affairs at the Countryside Alliance, said: “We warned that the rebellion against this unnecessary, divisive and disruptive tax hike on farmers would grow in the new year and we are in talks with councillors from across the UK about more joining.

“Having councils, many in areas covered by Labour MPs, openly revolting against the Treasury is a bad look for Rachel Reeves and , both of whom seem unwilling to get experts around the table to find a way out of this mess.

“We all know the policy is broken and that it threatens our food security and all that the rural community is asking for is an urgent rethink, so family farms aren’t thrown under the bus.

“It is bizarre that Labour would pursue a long battle with the countryside, particularly when the general public are so overwhelmingly supportive of farmers and opposed to this policy.”

Rural groups argue that the £1million threshold will hit the majority of working family farms instead of targeting wealthy landowners seeking to avoid inheritance tax. Many farmers are asset-rich but cash-poor.

The Daily Express has started its Save Britain’s Family Farm crusade, demanding that the Government U-turns on its controversial policy.

Farmers will continue their mass protests on Friday when they park their tractors outside supermarkets and talk to members of the public about the issue.

Where motions have been debated and voted, tractor demonstrations have often taken place outside council offices.

This includes Morpeth, the home of Northumberland County Hall, where councillors this week voted overwhelmingly to reject the policy.

Environment Secretary Steve Reed last week apologised to farmers over decisions the Government “had to take” to fix the public finances.

Labour has insisted the decision was necessary to fill the £22billion black hole left by the . The deny such a funding gap was left behind.

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