Gainsborough's MP challenges PM on farm inheritance tax

Gainsborough's MP has challenged Sir Keir Starmer to look into the full impact of the inheritance tax on farmers announced in the budget last week.

Under plans inheritance tax will be charged at 20% on agricultural assets above £1 million, although Chancellor Rachel Reeves has said that in some cases the threshold could in practice be about £3 million.

While the 20% figure still represents a relief of 50% compared to the standard rate, farming unions and opposition parties have criticised the move, arguing that it will make British farms uncompetitive.

In the spirit of compromise will he listen to the evidence

Sir Edward Leigh asked if the Prime Minister would take into account the evidence about the impact of last week's announcement in the budget.

He told the House of Commons: "If the evidence mounts from experts in organisations such as the NFU that smaller family farms of average size - 250 acres - are going to be severely impacted by this tax."

"In the spirit of compromise will he listen to the evidence - keep an open mind - and perhaps be prepared to raise the thresholds to preserve our family farms?"

We have taken a fair and balanced approach

The Prime Minister responded:

"We are listening to farmers and the Environment Secretary and the the Treasury minister has met with the NFU on Monday of this week."

"We have taken a fair and balanced approach."

"The vast majority of farms will not be affected by this."

"Having grown up in a rural communities I know that rural communities also need an NHS that's back on its feet - they also need schools that their children can go to and homes their families can afford to live in."

"But we will continue to talk to the NFU and others."

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