The government has pushed ahead with its controversial “family farm tax” plans after comfortably winning the vote on Resolution 50 of the Finance Bill, despite intense last-minute lobbying from the NFU urging Labour MPs to abstain.
Resolution 50 — the measure limiting agricultural and business property relief from inheritance tax — came under intense scrutiny throughout the debate on Tuesday evening (2 December). The vote was held during consideration of the wider Finance Bill as it continues its passage through parliament.
Although not binding, the result, 327-182, a majority of 145, signalled Westminster’s willingness to advance a 20% levy on farm estates valued above £1 million from April 2026 — a change that farm groups say could force multi-generational holdings to sell land simply to cover unexpected tax bills.
The policy has triggered widespread anger across the countryside, with thousands of farmers protesting in London last week. The NFU had appealed to Labour MPs to abstain from the vote, arguing there was still time for ministers to amend the proposal before it became law.
During the debate, several Labour MPs openly criticised the plans. Backbencher Markus Campbell-Savours warned: “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.”
Samantha Niblett, Labour MP for South Derbyshire, who later abstained, urged ministers to reconsider. “Most farmers are not wealthy land barons, they live hand to mouth on tiny, sometimes non-existent profit margins,” she told MPs.
“Many were explicitly advised not to hand over their farm to children, (but) now face enormous, unexpected tax bills. We must acknowledge a difficult truth: we have lost the trust of our farmers, and they deserve our utmost respect, our honesty and our unwavering support.”
A number of Labour MPs from rural and semi-rural constituencies chose not to vote, including representatives from areas such as Gower, Shrewsbury, Mid Derbyshire, the Ribble Valley, South Norfolk, Cornwall, Pembrokeshire and Montgomeryshire — a sign of growing unease on the Labour benches.
Public opposition to the policy continues to build. More than 275,000 people have signed petitions calling for changes, while trade groups representing around 160,000 family businesses have written to the chancellor warning of the damage the tax could inflict on rural economies. Independent tax specialists have also recommended a more targeted approach.
Before the vote, NFU President Tom Bradshaw said it was a crucial moment for MPs to demonstrate support for rural communities. He warned that without changes, the policy would “trap the most vulnerable members of our community, the elderly and terminally ill, with no ability to plan. It’s inhumane, and it’s cruel.”
Bradshaw had called on Labour MPs to abstain as a clear signal to ministers, and urged constituents in Labour-held seats to contact their MPs directly.
While yesterday’s vote does not finalise the policy, the level of dissent is expected to place further pressure on the government as the Finance Bill progresses to later stages.
