Chancellor Rachel Reeves has been hit by a significant internal rebellion, as Labour MPs representing rural constituencies refused to back the government's contentious plan to impose inheritance tax on farmers.
Budget Vote Exposes Deep Labour Divisions
The mutiny unfolded during the final day of the Commons debate on the budget on Tuesday 2 December 2025. Dozens of Labour backbenchers declined to support the measure, with Borders MP Markus Campbell-Savours becoming the sole Labour member to vote against the government. He was joined by Conservative MPs in opposition.
The controversial policy, dubbed the "family farms tax", proposes a 20% levy on farm estates valued at more than £1 million, effective from April. The prospect has mobilised tens of thousands of protesters to descend on Westminster, with small farmers fearing crippling bills that could force them to sell their land permanently.
NFU Plea Sparks Widespread Abstentions
The scale of discontent was laid bare in the fifth of seven budget votes. While the government comfortably won the vote by 327 to 182, a majority of 145, Labour's support plummeted. The party's vote count slumped from 371 in an earlier vote on tax changes to just 327, a drop of 44 votes indicating a significant number of abstentions.
This mini-mutiny followed a direct plea from the National Farmers Union (NFU), which urged Labour MPs to abstain on Budget Resolution 50. The NFU argued the policy had "cruel human costs" and demanded change.
After the vote, NFU president Tom Bradshaw stated: "The MPs who have shown their support are the rural representatives of the Labour Party. They represent the working people of the countryside and have spoken up on behalf of their constituents." He called on the Chancellor and Prime Minister to listen to the clear message sent.
MPs Voice Constituents' Fears
During the debate, MPs articulated the profound anxiety in the farming community. Markus Campbell-Savours highlighted "deep concerns about the proposed changes to agricultural property relief (APR)," noting the devastating impact on elderly farmers yet to arrange asset transfers.
Samantha Niblett, the Labour MP for South Derbyshire who abstained, made an emotional appeal: "I do plead with the government to look again at APR inheritance tax. Most farmers are not wealthy land barons, they live hand to mouth... We must acknowledge a difficult truth: we have lost the trust of our farmers."
The list of Labour MPs from rural seats who did not vote in favour included:
- Tonia Antoniazzi (Gower)
- Julia Buckley (Shrewsbury)
- Torquil Crichton (Western Isles)
- Jonathan Davies (Mid Derbyshire)
- Maya Ellis (Ribble Valley)
- Anna Gelderd (South East Cornwall)
- Ben Goldsborough (South Norfolk)
- Alison Hume (Scarborough and Whitby)
- And numerous others from Cornwall, Norfolk, Suffolk, Pembrokeshire, and Derbyshire.
A Clear Warning to Starmer and Reeves
While the government's majority remained secure, the rebellion serves as a stark warning to Chancellor Rachel Reeves and Prime Minister Keir Starmer. It demonstrates that newly elected Labour MPs from rural "shire" constituencies are prepared to defy the party whip when they believe a policy fundamentally threatens the livelihoods of their constituents.
The episode underscores the challenging balance the Labour government must strike between its fiscal objectives and the practical realities of supporting the agricultural sector, a key pillar of the rural economy. The fight over the family farms tax is unlikely to subside, with pressure mounting for a government rethink.
