PMQs: Conservative leader Kemi Badenoch to reverse Labour's 'cruel family farm tax'

Kemi Badenoch said Labor would reverse its “cruel family farm tax” as farmers warned the plan would “destroy much of the countryside”.

The new Conservative leader used his first Prime Minister’s Questions to ask Sir Keir Starmer how he would help farmers facing uncertainty after last week’s budget.

Chancellor Rachel Reeves announced Last Wednesday, 20% inheritance tax (50% off normal inheritance tax) was to apply to farms worth more than £1 million from April 2026, from which they were previously exempt.

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The announcement caused controversy, with farmers’ unions and Opposition critics claiming it would make Britain more dependent on imports and that food prices would rise as they would have to sell land to pay the tax.

Some have accused the government of failing to understand how farming works because most farms are asset-rich but cash-poor.

Ms Badenoch said her party would reverse the plan and asked the government to “reassure” farmers concerned about the move.

He told the House of Commons: “I’m very clear that we will reverse Labour’s draconian family farm tax.”

The Conservative Party leader added: “We heard him repeating lines on TV about fixing the foundations etc.

“What can he say now to reassure the farming community that ensures the security of the entire nation?”

Sir Keir replied: “I’m glad you’re training farmers because last week’s budget allocated £5 billion for farming over the next two years.

“This is the largest single increase, in contrast to the £300 million underspent under the last government.

“But when it comes to inheritance, the vast majority of farmers will not be affected by this, as he knows very well; as they know very well.”

Earlier in the day, Welsh Secretary Jo Stevens told the House of Commons that couples would be able to pass farms worth up to £3m to their children tax-free due to other tax reliefs.

But that did nothing to calm the emotions, with around 50 farmers protesting outside the Northern Farming Conference in Hexham, Northumberland, where agriculture minister Daniel Zeichner will be speaking on Wednesday.

One farmer said he was worried about “making it to the next harvest” due to cuts in unlinked payments, while another said the inheritance tax bill would be pushed “to a very high level” with “massive repercussions for the next generation”.

Iain Brown, 50, whose farm is in north Northumberland, told PA his message to ministers was: “Don’t be afraid to row back because you’re going to have to do it or you’ll destroy much of the countryside.

“It will change incredibly and fall into the hands of big corporations that don’t care.”

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