Terry Jermy MP casts doubt on Labour's assurances to farmers

Terry Jermy, Labour MP for South West Norfolk, questioned the "accuracy" of figures being used to justify changes to agricultural relief for inheritance tax announced in the Budget.

The new rules 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.

Mr Jermy said he wanted "reassurance" that chancellor Rachel Reeves has done her sums right after the government claimed around three-quarters of farmers will pay nothing in inheritance tax as a result of the controversial changes.

The changes could impact farms across Norfolk (Image: Ian Burt) WHAT ARE THE CHANGES? 

The chancellor revealed in the autumn Budget that she will reform agricultural property relief (APR) from April 2026.

Farming assets under £1m will not be affected but those over £1m will now face a 20pc inheritance tax bill.

Speaking in the House of Commons, Ms Reeves said: "This will ensure that we continue to protect small family farms, with three-quarters of claims unaffected by these changes."

READ MORE: Plummeting incomes illustrate 'stark' realities of farm finances

Chancellor Rachel Reeves (Image: PA) Farmers say the actual figure will be much higher and believe the changes 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.

Prime minister Kier Starmer has defended the decision and insists the "vast majority of farms and farmers" will not be affected by changes to APR in the budget. 

ARE THE FIGURES ACCURATE?

Terry Jermy, Labour MP for South West Norfolk, has cast doubt on his party's assertion that only three-quarters of inheritance claims will be impacted. 

Terry Jermy on a visit to Grange Farm (Image: Submitted) READ MORE: Driven young farmer fears ‘heartbreaking’ tax raid could threaten his career

He said: "I support reform of APR but want reassurance on the scale of the impact and confirmation that the figures are accurate.

"However, it is clear that many more people fear they will be impacted than actually is the case and I want the government to provide greater clarity on the proposals to reassure farmers, who have already endured so many challenges and uncertainty over many years.

"We need to address the tax loop hole that is being abused by certain celebrities and billionaires, such as Jeremy Clarkson, but cannot risk family farms being caught up in the changes."

This comes as new analysis by the Telegraph shows Mr Jermy as being among seven Labour MPs at risk of losing their seats owing to farmer-led backlash in rural constituencies. 

Mr Jermy won the South West Norfolk constituency from former prime minister Liz Truss by a majority of just several hundred votes at the General Election. 

ROW RAGES ON

Large demonstrations by farmers are expected in London today to urge backbench MPs such as Mr Jermy to stand up against the government's plans.

Celebrities including TV presenter and farmer Jeremy Clarkson are expected to join the rally.

Jeremy Clarkson outside The Squat Shop, on his farm, Diddly Squat, near Chipping Norton in the Cotswolds (Image: PA) READ MORE: Furious farmers gear up for mass Westminster rally against ‘devastating’ tax raid

Many of Mr Jermy's Labour colleagues have staunchly defended the policy changes, including Ben Goldsborough, MP for South Norfolk, who recently came under fire after claiming "proper farming families" would not be hit.

Kit Papworth, director of contract farming business LF Papworth Ltd, said: "Labour have misunderstood what the average small family farm looks like and any increase to tax is going to make these businesses completely unviable. 

"The figures being quoted by the government include those who own farming land - not just active farmers - and most people acknowledge they haven't got their definition correct."

MPs across Norfolk have backed the EDP's Fair Deal for Farmers campaign demanding the government rows back on its changes to agricultural property relief.

They include Reform UK MP for Great Yarmouth, Rupert Lowe; Conservative MPs James Wild, Jerome Mayhew and George Freeman; and Lib Dem MP for North Norfolk, Steff Aquarone.