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Burnham eyes 'cheap' win by scrapping family farm tax ahead of October budget, insiders reveal

From the Newshound archive · first published 20 September 2026.

Burnham eyes 'cheap' win by scrapping family farm tax ahead of October budget, insiders reveal

Andy Burnham is expected to perform a U-turn on the despised family farm inheritance tax in the October 28 budget, with axing the levy reportedly set to cost a relatively modest £300million. The move would reportedly let Burnham "scrape the barnacles off the Starmer boat" and win over 135 "grumpy" rural Labour MPs clinging to wafer-thin majorities. The tax has forced farmers to pay a 20 per cent levy on assets over £1million passed to their children, sparking mass protests in Whitehall. Raising the threshold to £5million is also reportedly being considered, though it would reportedly still saddle family farms with staggering bills.

Burnham's own economic guru, former Goldman Sachs chief economist Jim O'Neill, has warned Chancellor John Healey to rule out further tax rises entirely, saying more levies on business would choke growth.

The Treasury is reportedly in 'meltdown' after fiscal headroom shrank from £23billion to just £5billion, with Healey reportedly stress-testing income tax rises that would breach Labour's own manifesto.

MoreThe TimesReeves saw the EU as the answer. Is Andy Burnham still interested?The ScotsmanWhy Andy Burnham's desire to be more than 'first among equals' could be his biggest blunderGB NewsLabour ‘to U-turn on family farm tax’ as Andy Burnham eyes ‘cheap’ winGB NewsAndy Burnham told he's ‘missed his chance’ to call early General Election as tax hike fears set inGB NewsAndy Burnham's economic guru instructs Labour to rule out tax rises at Budget and scrap triple-lockGB NewsAndy Burnham must offer Britain more than Starmerism with better PR, writes Paul EmberyDaily Mail NewsAndy Burnham is 'plotting an early election' in desperate bid to get mandate for income tax hike
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