Labour is set to axe the family farm inheritance tax in October Budget as Burnham eyes a 'cheap' win over Starmer's legacy

From the Newshound archive · first published 20 September 2026.

Andy Burnham's No 10 is actively considering scrapping the hated family farm inheritance tax at the October 28 Budget, with the £300 million-a-year cost reportedly described internally as a relatively modest price to pay. Abolishing the levy would hand a symbolic victory to Jeremy Clarkson, who led mass farmer protests in Whitehall. A Labour source said the move would 'scrape the barnacles off the Starmer boat' and help Burnham distance himself from his predecessor.

The tax, introduced in Rachel Reeves's 2024 Budget, forces families to pay a 20 per cent levy on farm assets over £1 million when passing land to children.

A second option — raising the threshold to £5 million — is also being considered, though critics warn it would still leave many family farms facing crippling bills.

Burnham allies see abolition as key to winning over 135 'grumpy' rural Labour MPs sitting on 'wafer-thin majorities' ahead of the next election.