Louth and Horncastle MP and Shadow Secretary for Rural Affairs says family farm tax should be scrapped

A local MP and Shadow Secretary of State for Environment, Food and Rural Affairs has argued her Labour counterpart should be "banging on the Chancellor's door," demanding the family farm tax be scrapped.

During a visit to Louth’s historic livestock market on Friday (April 4), long-serving Conservative MP Victoria Atkins criticised Defra Secretary Steve Reed for his stance on the issue.

Dubbing him “city Steve,” she pointed out he had visited only four farms since taking office after last July’s General Election.

Chancellor Rachel Reeves outlined changes to Inheritance Tax rules in her autumn budget, specifically affecting Agricultural Property Relief (APR) and Business Property Relief on farmland and business assets. Previously, farmland was largely exempt under APR, but from April 2026, agricultural assets worth over £1 million will be subject to a 20 per cent tax.

While visiting RAF Waddington in March, Mrs Reeves defended the decision, insisting: “We got the balance right in the budget.”

“I know there are a lot of people in the rural economy who feel very, very worried and despondent after some of the dreadful policies announced by the city-dwelling government,” said Mrs Atkins.

“I’m here partly to say that I get that — that we [The Conservative Party] will, for example, axe the family farm tax as soon as we can — but also to give them a bit of hope that if they can hang on through the next four years until the next election, we will do everything we can to help them and their businesses flourish.

"I know that local people are having incredibly difficult conversations across kitchen tables at the moment because people know if a loved one dies after this terrible Labour tax is imposed, they could be left with a tax bill of £100,000s or even £1 million. If you are on an income of £25,000 a year, there is simply no way you can pay that tax."

The MP for Louth and Horncastle said that one farmer had described to her that "Rachel Reeves is snatching away my home, my business, but also my children's future".

Mrs Atkins, who previously served as the Secretary of State for Health and Social Care under former Prime Minister Rishi Sunak, later pointed out the toll that this policy, among other factors, was having on farmers' mental health.

"What I have found so frustrating is that when I have tried to raise it in a sensitive and sensible manner with the Secretary of State about the genuine impact this is having on people's mental health, he gets angry with me for daring to ask the question rather than the consequences of this policy.

"City Steve should be banging on the Chancellor's door demanding that she change this tax and that she gives farmers a bit of a break. But, we've seen no sign of that. Since the General Election he's visited a grand total of four farms."

Mrs Atkins also claimed that Farming Minister Daniel Zeichner had not met with any farmers since the autumn budget, but Defra says this is not true, stating that he has met with more than 70 farmers since last July and visited 11 farms in total since taking office.

"It is so frustrating because they are not doing their jobs properly, which is listening to people — people affected by their dreadful plans — and then looking to see if there are alternatives," she continued.

Mrs Atkins highlighted that the town’s historic cattlemarket now not only acts as an integral part of Louth's identity, but also plays an important social role where farmers can meet friends, talk about ideas and access support services from the likes of the Lincolnshire Rural Services Network.

"It brings people in. It's a wonderful way of showing just how important agriculture is to our wonderful market town and of course we know that many of the cattle here will be served in our great local shops and restaurants."

When asked how US President Donald Trump's 10% tariff imposed on UK exports to the US would impact the country's farming sector — and farms in the Louth and Horncastle constituency — she expressed her hope that PM Keir Starmer could secure a good deal, but stressed it must be on terms that do not hurt British farming.

A Defra spokesperson responded: “The Secretary of State and Farming Minister have championed British farming from the moment they took office, speaking to thousands of farmers and holding regular meetings.

“We’re investing £5 billion into farming, the largest budget for sustainable food production in our country’s history. We are going further with reforms to boost profits for farmers by backing British produce and reforming planning rules on farms to support food production.”