'It is not good enough for Rachel Reeves to tinker with awful tax grab... she must drop it altogether

CHANCELLOR Rachel Reeves has been urged to U-turn on her inheritance tax raid on farmers instead of merely tweaking the hated policy, as reportedly planned.

- By Katie Harris Senior Political Correspondent

The Government is said to be looking at changes to its so-called family farm tax ahead of next month's Budget in order to reduce the impact on small farms.

Discussions have reportedly focused on increasing the £1million threshold of combined agricultural and business property, or £3m for couples, above which farmers face paying a 20% rate of inheritance tax from April - having previously been exempt from paying any. One option would involve raising the limit to £5m before the standard 40% inheritance tax rate applies.

The Department for Environment, Food and Rural Affairs is understood to be drawing up a list of proposals to submit to the Treasury ahead of the Autumn Budget on November 26.

Disaster

But the Tories, who have pledged to reverse the tax if they win the next election, said it should be abandoned. Shadow Environment Secretary Victoria Atkins said: "Labour's family farm tax is a disaster for the people who put food on our tables and for us all.

"The UK is already in a food and farming emergency, with record farm closures and climbing food prices.

"It is not good enough for Rachel Reeves simply to tinker with this awful tax grab - she should drop it altogether.