South West Norfolk Labour MP, Terry Jermy, breaks party ranks to question changes to agricultural relief to farmers
A Norfolk Labour MP has broken party ranks to cast doubt on the Government’s assurances to farmers.
Terry Jermy, Labour MP for South West Norfolk, questioned the accuracy of figures used to justify changes to agricultural relief for inheritance tax announced in the budget.
The new rules mean people inheriting assets of more than £1 million can expect to pay significantly more, which industry experts warn could push future generations to quit the farming business.
Mr Jermy said he wanted reassurances that chancellor Rachel Reeves has done her sums right after claiming around three-quarters of farmers will pay nothing in inheritance tax as a result of the changes.
The chancellor revealed in the autumn Budget that she will reform agricultural property relief (APR) from April 2026.
Farming assets under £1 million will not be affected but those over the threshold will now face a 20 per cent inheritance tax bill.
Speaking in the House of Commons, Ms Reeves said: “This will ensure that we continue to protect small, family farms, with three-quarters of claims unaffected by these changes.”
Farmers say the actual figure will be much higher and believe the changes could put hard-working family businesses under threat.
Prime Minister Kier Starmer has defended the decision and insists the “vast majority of farms and farmers” will not be affected by changes to APR in the budget.
But Mr Jermy has cast doubt that only three-quarters of inheritance claims will be impacted.
He said: “I support reform of APR but want reassurance on the scale of the impact and confirmation that the figures are accurate.
“However, it is clear that more people fear they will be impacted than actually is the case and I want the Government to provide greater clarity on the proposals to reassure farmers.
“We need to address the tax loophole that is being abused by certain celebrities and billionaires, such as Jeremy Clarkson, but cannot risk family farms being caught up in the changes.”
