Inheritance Tax

Debate between Dan Tomlinson and Markus Campbell-Savours

Wednesday 14th October 2026 Commons Chamber

[Dan Tomlinson]

We will vote against the Opposition motion this evening. The responsible approach that this Government are taking stands in stark—

[Markus Campbell-Savours]

I ask the Minister to please not let the Opposition distract us from what can be done. The SFI debacle the other day demonstrated that farmers are struggling. There is an opportunity to do the right thing at the Budget. He must not let the party that wants to give tax benefits to the owners of £175 million penthouses distract us. There is something in what the Conservatives have written about farm taxes, but it is very different from the wider issue they have raised in this daft motion.

[Dan Tomlinson]

I thank my hon. Friend for his continued advocacy for the farmers in his constituency and across the country. Labour Members engaged constructively with me, the then DEFRA Minister and the then Prime Minister on the issue of the threshold in the inheritance tax changes for farms and businesses, and we made a change late last year to reflect the conversations and concerns on the Government Benches and the representations received then.

On the changes for residential property, it is worth noting before the House that independent analysis has shown that such changes could cost £10.8 billion a year once behavioural effects, which the Opposition did not cost, are taken into account. That means that there is a massive £5 billion black hole in their plans. That shows, as I think the whole House can agree, that the Opposition simply have not learned from the Liz Truss debacle, which pushed up interest rates and the cost of mortgages for constituents of mine in Chipping Barnet and for people across the country. We will not make the mistake that the Opposition made.

The changes on agricultural property relief and business property relief introduced in April this year are expected to raise around £300 million a year while offering protection for family farms and businesses. Through 100% relief on the first £2.5 million of qualifying agricultural and business assets, a couple can pass on up to £5 million of assets between them tax-free, in addition to existing allowances such as the nil rate band.

As we reach 7 pm, I think I should come to a conclusion. To fix our economy for the long term, we must ignore the fantasy economics and the unfunded commitments of the Conservatives, which will lead to economic ruin. Instead, we will stay focused on maintaining the resilience of our economy, where GDP growth has been revised up and we now have the highest growth in the G7, where living standards are rising after they fell in the previous Parliament, where investment is up in the public sector and the private sector, and where productivity is rising at its fastest rate, outside of the pandemic, in more than a decade.

We will reject this motion this evening because we reject tax cuts for those in £10 million homes being paid for by cuts to our public services, including the NHS, police and local government up and down the country. Instead, we on this side of the House will stay focused on delivering good growth in every postcode and, as someone once said, hope in every heart.

Question put.