Burnham floats £14bn capital gains tax raid to fund £600 handout as Farm Tax U-turn looms

From the Newshound archive · first published 21 September 2026.

Andy Burnham is considering a £14bn capital gains tax rise to fund a £600 direct payment to low earners, with the proposal emerging alongside separate reports that he is poised to scrap the hated Family Farm Tax at the October 28 Budget. Burnham's advisers believe ditching the farm levy — which would cost just £300m a year — is a cheap way to distance himself from Keir Starmer's legacy. The dual moves signal the Prime Minister is preparing a Budget designed to reset his government's image before the next election.

The Family Farm Tax, introduced by Starmer and Rachel Reeves, imposes inheritance tax on farm assets over £1m — sparking mass tractor protests in Westminster.

Burnham's team reportedly hope scrapping the levy will shore up 135 Labour MPs defending rural seats on wafer-thin majorities, with 43% of village residents reportedly saying Labour has 'waged war' on rural Britain.

Reform's Robert Jenrick warned that if Burnham fails to scrap the farm tax, 'Reform will' — raising the political cost of inaction.