A Norfolk MP has been called "out of touch" after claiming Labour's tax overhaul will not hit "proper farming families".
Ben Goldsborough, Labour MP for South Norfolk, has expressed his support for chancellor Rachel Reeves' plans to scrap the agricultural relief for inheritance tax.
It will mean people inheriting assets over £1m can expect to pay significantly more, which industry experts warn could push future generations to quit the farming business.
While Mr Goldsborough insists the policy is not "anti-farming", business owners have accused him of "entirely misunderstanding" the issue and say it will be a disaster for their livelihoods.
It comes on the day the EDP launches its Fair Deal for Farmers campaign demanding the government u-turns on agricultural property relief.
WHAT ARE THE CHANGES?
The chancellor revealed in the autumn budget that she will "reform agricultural property relief" from April 2026.
Farming assets under £1m will not be affected but those over £1m will now face a 20pc inheritance tax bill.
Ms Reeves, speaking in the House of Commons, said: "This will ensure that we continue to protect small family farms, with three-quarters of claims unaffected by these changes."
Farmers have criticised the plans and say this could put hard-working family businesses "under threat".
The ramifications could also push food prices up and destabilise the UK's supply chain, according to the National Farmer's Union.
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'NOT ANTI-FARMING'
Mr Goldsborough has defended the new policy and claims there has been "fearmongering" about what the changes will actually mean.
He cited the chancellor's claim that three-quarters of estates would be unaffected, although this has been disputed by industry leaders who believe "more than half" of farm businesses will be impacted.
He said: "The farmers I have spoken to recognise that the system needed reforming - it was being used by rogue actors looking for tax loopholes.
"These changes are designed to protect proper family farms and secure their future, but stop unscrupulous people from abusing the system.
"I think there has been a lot of fearmongering and when I have met union representatives in recent months this has not been their priority."
Critics of agricultural relief for inheritance tax say most recipients are not small farms, but rich families, without real connections to agriculture, who buy farmland to exploit the loophole.
However, Mr Goldsborough admitted that his constituents would be hit harder than those in other rural areas, due to high land values in south Norfolk.
He said: "We needed to make tough choices and I wish we had inherited a better situation from the previous government.
"But these changes aren't going to happen overnight and I will keep banging the drum for farming families. I want to take their views to the top of the table."
'COMPLETELY OUT OF TOUCH'
Mr Goldsborough's comments have been met with disbelief from industry leaders, who say he has "entirely misunderstood" the problem.
Kit Papworth, director of contract farming business LF Papworth Ltd, said: "He is completely out of touch - this is absolutely an attack on the small family farm.
"There has been such huge uproar because families who have worked hard to build something from nothing will have to sell up after this generation.
"Labour have misunderstood what the average small family farm looks like. Farmers are already squeaking because there is no money left to pay the bills - this tax will make many small businesses completely unviable."
Nick Deane, a NFU Norfolk representative who farms at Hoveton, disputed Mr Goldsborough's claims that the issue is not a "key priority" for the farming community.
He said: "These tax reliefs are essential for family farm businesses and should not be regarded as a loophole. If there are loopholes, the government has the ability to close them through legislation rather than instigating a blanket tax on all farms.
"This is not a tax on the richest people in society. This is a tax on hard working family farms and puts the future of many farm businesses under threat."
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'DEATH KNELL'
Political figures across Norfolk have criticised the decision to scrap the agricultural relief for inheritance tax.
Jerome Mayhew, Conservative MP for Broadland and Fakenham, believes the budget changes will "spell the end of family farms".
He said: "Ben Goldsborough claims that 'proper farming families' will not be hit by the tax changes. It goes to show Labour has no understanding of farming in Norfolk.
"These changes have the power to wipe out farms right across the country, and particularly here in rural Norfolk. If their tax hikes go ahead, they will be the death knell of family run farms and Labour aren’t being honest about it."
James Wild, Conservative MP for North West Norfolk, said: "Labour's family farm tax shows a contempt for the rural way of life and farmers who work to build and maintain a farm to pass on to the next generation.
"Mr Goldsborough's claims that this is about closing a 'loophole' are nonsense - this relief is a policy designed to protect Britain's family farms from being sold and broken up."
Rupert Lowe, Reform UK MP for Great Yarmouth and a farmer himself, said: "What Mr Goldsborough says is nonsense. Just look at the fury from the farming community, this will affect decent men and women who want to pass their farm down to their children.
"MPs should speak to farmers in their constituencies and ask if they have hundreds of thousands of pounds sitting in the bank ready to pay Labour's new farm tax. They won't.
"This is being forced on a farming community that is already on its knees."
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