Labour averts revolt by MPs as tractor protests drive climbdown on farm tax

It was concern about farmers that made us change our plans, not the threat of backbench rebellion, says No 10

- Catherine Neilan

The government has narrowly averted a major showdown with its own MPs, including a clutch of threatened resignations in the next few weeks, after watering down its plans to impose inheritance tax on smaller farms.

The Department for Environment, Food & Rural Affairs (Defra) revealed just before Christmas that the threshold for the new tax was being raised from £1m to £2.5m.

As a result, the number of estates that will be affected in the first year after the new tax kicks in from April has halved to around 185, down from 375, according to official estimates.