Treasury ministers faced a barrage of criticism in the Commons this week as MPs from all parties demanded the chancellor scrap the government's inheritance tax proposals, warning it is already undermining farmers’ appetite to invest.
In the first Treasury questions of the new parliamentary session, ministers were pressed repeatedly to rethink the policy, with MPs citing the damaging effects already being felt across rural communities.
They warned that the proposal, due to take effect in April 2026, is eroding farmers’ confidence and urged the Chancellor Rachel Reeves to meet industry leaders without further delay.
The exchanges marked a fiery Commons debut for the new Treasury team, with farming voices amplified through coordinated cross-party pressure.
Calls for a rethink grew louder as MPs highlighted fresh evidence of deferred investment and deepening strain on farming families.
Backbenchers from both sides of the House cautioned that, unless reversed, the policy would cause lasting damage to British agriculture.
The debate was sparked by David Chadwick, Liberal Democrat MP, who asked whether the chancellor would meet with representatives of the farming community to discuss the tax. Despite repeated requests, the chancellor has yet to meet with the NFU.
Mr Chadwick went further, challenging the government by asking why “farmers are being forced to pay for bad governance.”
His intervention was quickly followed by Damian Hinds, Conservative MP, who pointed out that 80% of farmers have deferred investment since last year’s Budget.
He argued the policy should be reconsidered to support investment, productivity and economic growth.
John Cooper, also a Conservative MP, highlighted what he described as the “dreadful human impact” the tax is having on farming communities in his constituency.
He also cited a recent CenTax (Centre for the Analysis of Taxation) report, which recommended reforms be better targeted to protect working farms.
Adding to the pressure, Liberal Democrat Deputy Leader Daisy Cooper reiterated her proposal for a “family farm test,” modelled on policies in France and Ireland.
She argued such a measure would prevent big equity firms from buying land for tax advantages, while safeguarding family farms.
Despite the chorus of concern, Chief Secretary to the Treasury James Murray defended the government’s position, stating: “the government continues to believe that the approach we have set out is the right one.”
The exchanges underline the mounting unease in parliament about the consequences of the so-called 'family farm tax'.
With MPs speaking out on behalf of farmers across the UK, farming industry bodies, such as the NFU, insist the fight is far from over.
The union's Stop the Family Farm Tax campaign will now turn its focus to the Finance Bill, warning that — despite ministerial assurances — the policy threatens to do “great damage to British agriculture.”
