Inheritance Tax

Victoria Atkins Excerpts

Wednesday 14th October 2026 Commons Chamber

[Victoria Atkins (Louth and Horncastle) (Con)]

As I have listened to this debate today, I too have been reminded of the chilling words describing Labour MPs by their own Work and Pensions Secretary:

“Every meeting I have is ‘who can we tax in order to pay benefits to others’.”

This debate today once again sets out the battle of ideas between the welfare party and the Conservatives. This is the eighth vote the Conservatives have forced on the family farm and family business taxes since the disastrous first Labour Budget of broken promises. In that time, we have seen off a Prime Minister, a Chancellor and two DEFRA Secretaries of State, and discovered that one DEFRA Minister views black Labradors, warm ale and pubs as a far-right fantasy.

We have also shown the power of rural and coastal communities, because through their protests here and across the country, the heartrending stories we have heard from families of the terrible discussions and decisions they have had to make in order to avoid this vindictive death tax, as set out eloquently by my hon. Friend the Member for Keighley and Ilkley (Robbie Moore), and the pressure we have exerted here in Westminster, we forced the Government into one of their most humiliating U-turns. There have been many, but this one was humiliating: their partial U-turn on these vindictive taxes.

We are forcing another vote today, ahead of Budget, because we know the damage that these vindictive taxes continue to cause to the rural economy. We know that this Government have overseen the highest number of farms closing on record in a year—shameful. The Financial Secretary did not admit that.

We also know, as my hon. Friend the Member for Dumfries and Galloway (John Cooper) has set out, that the 10-year payment scheme that the Government keep talking about applies only if the estate is able to make the first payment within six months of the death, probate having been settled. Does anyone know of such a scenario in their own constituencies? This means that the 10-year payment plan is nothing but warm words from those on the Treasury Bench. It is an absolutely impossible condition to fulfil for the overwhelming majority of family farms and businesses that will be hit by these taxes.

The Financial Secretary also did not acknowledge that investment in rural economies has dropped off a cliff. [Interruption.] He is not listening, but he might want to do so. In a recent Country Land and Business Association survey, nearly nine in 10 rural family businesses stated that they have paused investment; in fact, 85% say that the current threshold of which the Financial Secretary is so proud is not enough to cover the value of their business, given the cost of machinery and livestock and the other business costs imposed by this Government. Of course, two pubs are also closing every day under this Government. In short, rural communities cannot afford Labour.

Despite their protestations over the past two years, every single Labour MP has voted for the family farm tax and the family business tax multiple times; only one had the courage to vote for his constituents. There is one other who did not: the Prime Minister, because he was not in Parliament at the time of the other votes. He knows that Labour has a rural problem, though. He has said that he recognises that the Government have a

“long way to go to build back trust”

with the farming community across the country.

It is therefore a shame that today of all days, the Prime Minister has put another tax on family farms—the fertiliser tax. And every Labour MP voted for it. Again, the Work and Pensions Secretary was right. This is another hammer blow to British farming, only weeks after the shambolic handling of the sustainable farming incentive, the collapse of the Government’s environmental policy and the Prime Minister’s botched response on how his deal with the EU will, in fact, favour foreign farmers over British farmers and hand control over our food laws to the European Union.

In the battle of ideas today, we have heard some superb speeches from the Conservatives Benches. My hon. Friend the Member for Central Suffolk and North Ipswich (Patrick Spencer) painted a picture of the many local pubs and black Labradors in his Suffolk constituency—the DEFRA Minister may wish to take note. My hon. Friend the Member for Bromley and Biggin Hill (Peter Fortune) set out sound economic analysis, even if he admitted that his cricketing skills are not quite what they should be. My hon. Friend the Member for Mid Bedfordshire (Blake Stephenson) set out a description of the Labour party that I think hits home almost as much as the words of the Work and Pension Secretary: Labour is the party that taxes aspiration. This vote tonight is the proof of that.

My hon. Friend the Member for Bridgwater (Sir Ashley Fox) made an excellent intervention about the fact that the tax focuses only on British family farms and family businesses and does not affect foreign owners of farmland. Perhaps the Minister will explain how it is fair that foreign farmers should not pay this tax but British farmers should do so.

We heard other excellent speeches, including by my hon. Friends the Members for South West Hertfordshire (Mr Mohindra), for Keighley and Ilkley (Robbie Moore), for Rutland and Stamford (Alicia Kearns), for Farnham and Bordon (Gregory Stafford), for South West Devon (Rebecca Smith), for Solihull West and Shirley (Dr Shastri-Hurst), for Broxbourne (Lewis Cocking), and for Runnymede and Weybridge (Dr Spencer), who described Labour’s approach to taxation as “asset stripping our country”.

Let me turn to some of the speeches from the Labour Benches. We heard from the hon. Member for Welwyn Hatfield (Andrew Lewin), who by the way voted for the family farm and family business tax seven times—tonight will be an eighth—and the hon. Member for Macclesfield (Tim Roca), who only voted for it three times. I am sure his farmers are so happy about that. Both of them asked, “What can be done to help those who are not yet on the housing ladder?” I am delighted to tell them that the Conservative party has the answer. We will be scrapping—

[Tim Roca]

Will the shadow Minister give way?

[Victoria Atkins]

No, if the hon. Gentleman sits down—[Interruption.] I have some words about his AI-generated speech in a moment.

The Conservatives have the answer: we will scrap stamp duty on primary residences. That is how we help people back on the housing ladder. The hon. Member for Macclesfield also described his own constituents who want to pass on their family homes or family businesses to their children as the “idle rich”. I hope that was just the AI.

[Tim Roca]

Will the shadow Minister give way?

[Victoria Atkins]

I will, and I genuinely hope that he will explain his “idle rich” comment. Go on.

[Tim Roca]

I was quoting Churchill, in particular from a lecture given by Professor Daunton at Gresham College in 2021, when he directly quoted Churchill when he was Chancellor of the Exchequer as a Conservative.

[Victoria Atkins]

That will not plough any furrows with the farmers in the hon. Gentleman’s constituency whom he has just described as the “idle rich”. What is more, he has got his figures wrong. He keeps throwing these figures around, but in fact that Tax Policy Associates think-tank that so many Labour colleagues seem to rely on has said that by the end of this decade one in six families will pay inheritance tax—many of them in his constituency, which I know well.

The hon. Member for St Austell and Newquay (Noah Law) voted for the family farm and family business tax only a mere six times—he missed one of them—but he had the bright idea that farmers should get life insurance and planning advice. How on earth are farmers in his constituency on an income of around £20,000 a year going to afford that? It is yet more business taxes.

We also heard a reliance on Dan Neidle and his organisation Tax Policy Associates. I merely make the point, so that it is open and transparent, that Dan Neidle is a senior member of the Labour party and served for three years on its disciplinary committee.

The Conservatives are setting out the tough decisions to cut spending and help hard-working families up and down the country invest in their businesses and homes, ready to hand over to their families. People who have worked hard, paid their income tax, lived within their means and saved have not done so in order for the current Labour Chancellor to tax that all over again. They have done so because they have a deep desire to leave something to help the next generation prosper when they are no longer here.

[Dr Arthur]

Where domestic properties are concerned, of course more people are getting drawn into paying the tax because the thresholds have been frozen. I am sure that the Minister who came to the House in 2022 to say that the rates at that time were to be frozen until 2028 is currently at the Opposition’s Dispatch Box.

[Victoria Atkins]

I am so glad that the hon. Gentleman has brought that up, because not only did his first Chancellor extend the freeze, but she dragged pensioners into it. It is literally the worst of all words.

Let me reiterate the point I just made, because it is an important one. Under this Government, one in six families will be liable to pay inheritance tax by 2030. That means many more constituents being liable to pay the tax. The hon. Member for St Austell and Newquay said that our idea to axe inheritance tax on the family home was bonkers. I hate to break it to him, but Austria, Portugal, Sweden, Norway, Australia, Canada and New Zealand have all done the same.

The reason why we are doing it, and why this is so important, is that we know it is families who build this country; it is families who put down roots. They build a home, they run a farm or they start a business, and they bring prosperity and vibrancy to our villages and our towns. So I make the promise that the Conservatives will axe these taxes if Labour does not does so at the Budget, because only the Conservatives are the party of the family home, the family business and the family farm, and only the Conservatives will get Britain working again.