Northumberland MP criticised by farmer over inheritance tax back-track

Speaking in Parliament, Labour MP Mr Smith called on the Government to reconsider the changes amid concerns the plans would impact family farms.

However, in December, he voted down a Conservative motion that would have scrapped the so-called family farm tax and backed the Government’s budget earlier in the year that introduced the policy.

Tory councillor Mark Mather represents the Wooler ward in Mr Smith’s constituency and is a tenant farmer. He argued the MP should have listened to residents’ concerns in the first place.

Cllr Mather said: “I don’t know what he’s playing at. Why come out now? How can we trust him? This has put people through months of sheer hell.

“Why didn’t he just listen in the first place? At the end of the day, the MP is elected by the people of the constituency to represent them, he’s not employed by the Government.

“This is not about political point scoring, it’s about right and wrong and he has been sat on the wrong side of the fence. He should be representing the people of the area.”

The Government has previously claimed that “most estates” would not be impacted by the proposals, which would see inherited agricultural assets worth more than £1m incur a tax of 20% – half the standard rate of 40%. Previously, these assets were exempt.

Speaking in parliament, Mr Smith suggested that the policy be “recalibrated” to better serve the aims set out by Government – to “stop the super-wealthy from minimising their tax liabilities by land banking with agricultural land”.

The Government insist that the policy will better target the relief to make them fairer and protect family farms. Data shows that the largest 117 claims accounted for 40% of the total value of agricultural property relief, costing the taxpayer £219 million.

A spokesman for the Government said: “It is not fair for a very small number of claimants each year to claim such a significant amount of relief, when this money could better be used to fund our public services.”

Mr Smith was contacted for comment but declined to provide one.