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A newly elected Labour MP has gone public with his objections to the government’s proposed farm tax, saying it would “penalise” small farms in rural communities.

Henry Tufnell, MP for South and Mid-Pembrokeshire, told Sky News he and other colleagues had informed ministers it’s not only wealthy landowners who would be affected by the decision to levy inheritance tax on farms worth more than £1m.

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It comes as farmers gather in central London again today, although without their tractors, to protest the changes.

The controversial decision to remove Agricultural Property Relief was announced by Rachel Reeves at last year’s budget and is due to take effect in April 2026.

It has seen a growing backlash from farmers, as well as supermarkets Tesco, Aldi and Lidl, who have raised concerns about food security, and business group the CBI, which last week said it would hit growth.

Mr Tufnell is the third Labour MP to speak out, and it’s understood more could follow, as a vote on the change looms in the coming months.

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Starmer abandons visit after farmer protest

‘We have to stand up’

After making representations to Treasury ministers behind the scenes, Mr Tufnell is calling for the threshold for levying the tax to be raised.

He also wants an amnesty or transition period for older farmers who may not be able to pass farms on to their children in time to avoid it.

“Me and a number of other MPs who are part of this new, broader, coalition within the Labour Party have to stand up and inform government that this is affecting our constituents,” he said.

Farmers ‘critical’ to boost growth

“It’s affecting the fabric of the society within those rural communities and that’s why we were elected,” he added.

He said the tax relief for farmers had “encouraged them to die in their boots” – and farmers in their 70s and 80s had been put “in this incredibly difficult position” as they could not plan for the change.

“The policy needs to be improved,” he added, saying farmers are “critical” not just for the government’s growth agenda, but also hitting its environmental targets.

Read more:
What’s the beef with farmers’ inheritance tax?

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Why should farmers be taxed more?

A broken election promise?

Mr Tufnell, 32, narrowly won the seat from Conservative former cabinet minister Stephen Crabb, having told constituents during the election campaign that no changes to inheritance tax were planned.

His is one of 59 rural constituencies which are among the 100 most marginal wins for Labour.

The MP, who lives in Pembrokeshire, has faced questions after it was revealed last year that a portion of the land on the 2,200 acre Gloucestershire farm belonging to his parents Mark and Jane, worth a reported £20m, had been passed to his brother Albermarle just before the budget.

It means if Mark Tufnell lives for another seven years, no inheritance tax – which would be levied at a rate of 20% – would be paid on that part.

Mr Tufnell reiterated to Sky News he had no inkling of the change, which was not in Labour’s manifesto, saying it’s “completely preposterous” to suggest a backbencher would know in advance.

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Farmer explains how tax will hit him

‘Dyson and Clarkson should pay more’

Mr Tufnell couldn’t say where the threshold should be set, but said it’s something the government should discuss with farming unions.

The government says with tax reliefs that apply to farms owned by couples with children, the threshold could be up to £3m.

“I completely agree James Dyson and Jeremy Clarkson should pay more,” he said.

‘Huge concerns’

The MP acknowledged there have been “issues” with people “dodging tax” and around how the relief “artificially inflates the price of land”.

“But I’ve been engaging extensively with my constituents in Pembrokeshire, speaking to individual farmers in beef, dairy, poultry, on small-scale family farms, and they’ve got huge concerns,” he said.

“It’s not about me and my family. I appreciate that I come from a farming family. But fundamentally I’m standing up for my constituents on a constituency matter and that’s the issue here.”

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Jeremy Clarkson tells govt to ‘back down’

‘The straw that broke the camel’s back’

A group of some 30 rural Labour MPs deeply concerned about the impact of the policy are understood to have held meetings with Treasury ministers in the past month.

Steve Witherden, MP for Montgomeryshire and Glyndwr, and on the left of the party, said in January the proposed changes “feel like the straw that broke the camel’s back”.

Marcus Campbell-Savours, MP for the rural constituency of Penrith and Solway, said he planned to vote against the government’s plans in their current form and would seek “important amendments.”

The chancellor insisted at the October budget that the changes, which the government estimated would save £500m a year, would “ensure we continue to protect family farms”.

She said the top of 7% of claims currently account for 40% of the total tax relief, but the National Farmers Union claim the figures are “misleading” and tens of thousands of farms could be affected.

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Labour deputy leadership candidate accuses opponent’s team of ‘throwing mud’ and briefing against her

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Labour deputy leadership candidate accuses opponent's team of 'throwing mud' and briefing against her

Lucy Powell has accused Bridget Phillipson’s team of “throwing mud” and briefing against her in the Labour deputy leadership race in a special episode of Sky’s Electoral Dysfunction podcast.

With just days to go until the race is decided, Sky News’ political editor Beth Rigby spoke to the two leadership rivals about allegations of leaks, questions of party unity and their political vision.

Ms Powell told Electoral Dysfunction that through the course of the contest, she had “never leaked or briefed”.

But she said of negative stories about her in the media: “I think some of these things have also come from my opponent’s team as well. And I think they need calling out.

“We are two strong women standing in this contest. We’ve both got different things to bring to the job. I’m not going to get into the business of smearing and briefing against Bridget.

“Having us airing our dirty washing, throwing mud – both in this campaign or indeed after this if I get elected as deputy leader – that is not the game that I’m in.”

Ms Powell was responding to a “Labour source” who told the New Statesman last week: “Lucy was sacked from cabinet because she couldn’t be trusted not to brief or leak.”

Ms Powell said she had spoken directly to Ms Phillipson about allegations of briefings “a little bit”.

Bridget Phillipson (l) and Lucy Powell (r) spoke to Sky News' Beth Rigby in a special Electoral Dysfunction double-header. Pics: Reuters
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Bridget Phillipson (l) and Lucy Powell (r) spoke to Sky News’ Beth Rigby in a special Electoral Dysfunction double-header. Pics: Reuters

Phillipson denies leaks

But asked separately if her team had briefed against Ms Powell, Ms Phillipson told Rigby: “Not to my knowledge.”

And Ms Phillipson said she had not spoken “directly” to her opponent about the claims of negative briefings, despite Ms Powell saying the pair had talked about it.

“I don’t know if there’s been any discussion between the teams,” she added.

On the race itself, the education secretary said it would be “destabilising” if Ms Powell is elected, as she is no longer in the cabinet.

“I think there is a risk that comes of airing too much disagreement in public at a time when we need to focus on taking the fight to our opponents.

“I know Lucy would reject that, but I think that is for me a key choice that members are facing.”

She added: “It’s about the principle of having that rule outside of government that risks being the problem. I think I’ll be able to get more done in government.”

👉 Click here to listen to Electoral Dysfunction on your podcast app 👈

Insider vs outsider

But Ms Powell, who was recently sacked by Sir Keir Starmer as leader of the Commons, said she could “provide a stronger, more independent voice”.

“The party is withering on the vine at the same time, and people have got big jobs in government to do.

“Politics is moving really, really fast. Government is very, very slow. And I think having a full-time political deputy leader right now is the political injection we need.”

The result of the contest will be announced on Saturday 25 October.

The deputy leader has the potential to be a powerful and influential figure as the link between members and the parliamentary Labour Party, and will have a key role in election campaigns. They can’t be sacked by Sir Keir as they have their own mandate.

The contest was triggered by the resignation of Angela Rayner following a row over her tax affairs. She was also the deputy prime minister but this position was filled by David Lammy in a wider cabinet reshuffle.

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UK tax authority doubles crypto warning letters in crackdown on unpaid gains

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UK tax authority doubles crypto warning letters in crackdown on unpaid gains

UK tax authority doubles crypto warning letters in crackdown on unpaid gains

HMRC sent nearly 65,000 warning letters to crypto investors last year, more than double the previous year, as the UK steps up efforts to trace undeclared capital gains.

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‘Additional resources’ offered by govt to reverse ban on Maccabi Tel Aviv fans at Villa game

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'Additional resources' offered by govt to reverse ban on Maccabi Tel Aviv fans at Villa game

The government says it is exploring what “additional resources and support are required” to allow “all fans” to attend Maccabi Tel Aviv’s match against Aston Villa next month.

Supporters of the Israeli side have been told they are not allowed to attend November’s game in Birmingham after a decision by Birmingham’s Safety Advisory Group (SAG).

The group – made up of local stakeholders, including representatives from the council, police and event organisers – said the decision was due to a high risk of violence based on “current intelligence and previous incidents”.

Politics live: MPs react to Maccabi Tel Aviv fan ban

The decision has been criticised across the political spectrum, with Sir Keir Starmer describing it as a “wrong decision” while Tory opposition leader Kemi Badenoch called it a “national disgrace”.

In a statement on Friday night, a government spokesperson said: “No one should be stopped from watching a football game simply because of who they are.

“The government is working with policing and other partners to do everything in our power to ensure this game can safely go ahead, with all fans present.

“We are exploring what additional resources and support are required so all fans can attend.”

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Birmingham residents react to the Maccabi fan ban

Meanwhile, Home Secretary Shabana Mahmood said: “Antisemitism is a stain on our society that shames us all. Every football fan, whoever they are, should be able to watch their team in safety.

“This government is doing everything in our power to ensure all fans can safely attend the game.”

The prime minister’s spokesman previously said Sir Keir would “do everything in his power to give Jewish communities the security they deserve”.

Read more:
Why are fans banned – and has this happened before?
How this raises questions about one of the UK’s biggest cities

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Badenoch: Fan ban a ‘national disgrace’

The Home Office offered to provide more police for the event, while Culture Secretary Lisa Nandy and Communities Secretary Steve Reed also intervened.

However, senior police insisted the ban was necessary and cited clashes and hate crime offences committed when the Israeli team travelled to Amsterdam to play Ajax last year.

The Aston Villa vs Maccabi Tel Aviv match – set to take place on Thursday 6 November – is a Europa League fixture.

UEFA, which runs the tournament, had urged UK authorities to ensure away fans could attend.

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