Inheritance tax row means no trust, says Labour MP

The relationship between the UK government and the farming sector has “completely broken down” in the row over inheritance tax changes, a Labour MP has said.

Henry Tufnell, the MP for Mid and South Pembrokeshire, said there was a “lack of trust and confidence”.

In a video posted on his Facebook account, he called for an “improvement to the policy” and said that the UK government should “bring the farming sector” with them.

The UK government said in a statement its commitment to farmers remained “steadfast”.

Tufnell said the farming sector was crucial for economic development and to meet environmental targets.

In Chancellor Rachel Reeves’ Budget on 30 October it was announced inherited agricultural properties worth more than £1m would be subject to inheritance tax at 20% from April 2026.

The government has said the changes will only affect the wealthiest 500 farms each year, but farming groups argue as many as 70,000 could be affected.

The Pembrokeshire MP is the latest Labour politician to criticise the changes, after Montgomeryshire and Glyndŵr’s Steve Witherden said the changes “risk having a deeply detrimental effect on working family farms”.

In his social media video, Tufnell said: “The relationship between the farming sector and the UK government has completely broken down.

“There’s a lack of trust and confidence, and its particularly around this issue around inheritance tax and the changes that were made in the budget in October.

“There needs to be a improvement to this policy because its so important that we as a government bring the farming sector with us.”

A government spokesperson said: “Our reform to Agricultural and Business Property Reliefs will mean three quarters of estates will continue to pay no inheritance tax at all, while the remaining quarter will pay half the inheritance tax that most people pay, and payments can be spread over 10 years, interest-free.

“This is a fair and balanced approach which helps fix the public services we all rely on.”

It recently emerged that Tufnell’s parents transferred ownership of their farm land to one of their sons days before changes to inheritance tax rules were announced.

On 10 October, 2024, his father and mother, Mark and Jane Tufnell, passed Upper Colne Farm and Stud to another son, Albermarle.

There is no suggestion the Tufnells have done anything unlawful.