Inheritance Tax

Debate between Ashley Fox and Blake Stephenson

Wednesday 14th October 2026 Commons Chamber

[Blake Stephenson]

I am impressed by the hon. Lady’s research between the intervention earlier by my right hon. Friend the Member for South West Wiltshire (Dr Murrison) and her making that point now. I might add that constituents on that street may have been duped by some Lib Dem bar graphs.

Mid Bedfordshire is a rural constituency with many farming families, as is the case right across the country. They were told in October 2024 that the Government were coming for the land that they have worked for generations. Thanks to their hard work, campaigning and pressure from the Opposition, the Government retreated last December and raised the threshold to £2.5 million. Those farming families are grateful for that, but it does not go far enough.

Despite debate after debate in this House, the Government still do not seem to understand that a farmer earning a small yield from land worth millions on paper only, cannot cover the inheritance tax liability unless they sell the land. If the Government would prefer farmers to sell their land rather than farming it, they should just say so. If not, they should acknowledge that the incentives their family farm tax creates are simply wrong. Under their plans, a 20% charge still applies on land that often yields only 1% or 2% a year, but that is vital for them to help feed the nation.

The rules have changed twice in 14 months. A farm or business succession cannot be planned over a generation when the tax rules change every Budget. The same is true of a family business. The engineering firm, the builder’s merchant, the garden centre—up and down the country, great family businesses cannot plan their succession when they do not have certainty in the rules.

[Sir Ashley Fox (Bridgwater) (Con)]

Does my hon. Friend agree that it is completely iniquitous that family farms have to pay inheritance tax on their assets, and yet if those assets were owned by a foreign company or individual, no inheritance tax would be paid? Why do this Labour Government want to single out British-owned family farms?

[Blake Stephenson]

My hon. Friend makes a superb point. The Conservative Benches find it beyond all comprehension as to why the Government would target small family businesses and farms in the way that they have. I thank my hon. Friend for making that point.

When an owner of a small business or a farm dies unexpectedly, the family should be focused on keeping the business going and the staff in work, not on raising a tax bill by selling off pieces of the business until there is nothing left. The Government cannot talk about growth and then take apart small businesses because an owner has died. That is completely the wrong approach.

What will we do in Government? A Conservative Government will abolish inheritance tax on the family home; that is the right thing to do. We will replace today’s complicated allowances with a single £500,000 allowance per person—£1 million per couple. We will restore agricultural and business property relief in full, so that no family farm or firm is broken up to fund Labour’s welfare spending.

The Prime Minister says we cannot have national security without social security—an absolutely shocking statement. But we cannot have either without economic security; without an economy where people create jobs, expand businesses, buy homes and feel the benefits of doing so. Our reforms would ensure that welfare works for British citizens, that people with lower-level mental health conditions get treatment rather than being written off with a cheque, that more assessments are done face to face, and that the obligation to look for work means something. Getting people into work is good for them, good for their families and good for the taxpayer.

In two weeks’ time the Chancellor will deliver his first Budget. I know that Conservative Members are really looking forward to that day. The Chancellor has a choice: he can keep taxing work, savings and inheritance—taxing everything people own that is not nailed down and more besides, perhaps; let us see—to pay for a welfare bill that is truly out of control, or he can change course, get a grip on spending and help to power the engines of growth that will make us all richer. I know which choice families in Mid Bedfordshire would make.