MPs welcome farm tax U-turn

WEST MPs of all political stripes have reacted to the Government's surprise partial climbdown over inheritance tax on farms.

- RICHARD BACHE

A major farming tax protest in London. MPs, from left to right below, Sadik Al-Hassan, Tessa Munt, Roz Savage and John Glen

Labour's watered-down plans will see the relief threshold for farmers raised from £1 million to £2.5 million.

This comes after months of protests and warnings over farmers contemplating suicide to avoid the taxes as they pass their businesses from generation to generation.

Tessa Munt, the Lib Dem MP for Wells and the Mendip Hills, said: "I've been proud to stand with Somerset farmers to protest against the family farm tax.

"That the threshold will be raised from £1m to £2.5m is welcome progress. But the tax must still be scrapped. With LibDem colleagues I'll continue to fight for this."

Her Lib Dem counterpart for Thornbury and Yate, Claire Young, said: "This is yet another chaotic and last minute U-turn from the Government.

"Farmers have been put through so much uncertainty and anguish as a result of these plans."

Labour MP for North Somerset Sadik Al-Hassan meanwhile said: "Since the first budget there was a need for changes to Inheritance Tax thresholds (IHT) and it is one of the reasons I joined the Labour Rural Research Group.

"It is important to recognise the amazing work and support by the NFU both locally and nationally

"A big thank you to all the hardworking farmers in North Somerset who have talked with me over the past year and a half who have given me the evidence to raise with Government.

"This change is not a reversal of IHT and will not cover every farm estate but I believe we have finally struck the right balance."

West Tory MPs were more critical of how Labour has handled the process.