Crucial new business tax will ‘destroy the farming industry’, says South West Devon MP

A vote in Parliament on Tuesday (16 December) has prompted strong reaction from Conservative representatives in South West Devon, including Dartmoor, after Labour MPs supported the next stage of what has been described as the Family Farm and Business Tax.

The vote took place during consideration of the Finance Bill, with Labour MPs backing the measure and Conservative MPs voting against it. 

As a result, the proposals will now continue through the legislative process, and Rebecca Smith, Conservative MP for South West Devon, voted against the measure. 

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In comments released following the vote, she said the decision would have significant consequences for farming communities locally and nationally:

“I joined fellow Conservative MPs to stop the Family Farm and Business Tax and protect hundreds of thousands of farmers, their families and communities like in South West Devon,” 

“Labour must u-turn so the hard-working farmers in South West Devon and around the country can continue to produce the food we eat three times a day,” she added.

The Conservatives argue that the proposals will expand inheritance tax liabilities for farms and family-run businesses. 

According to figures cited by the party, more than 75 per cent of farms across the country could be affected by changes to inheritance tax rules. 

They say this could increase financial pressure on farms that are already facing higher costs and uncertain market conditions.

Ms Smith also warned of long-term impacts on the farming sector:

“I am sure people here and across the country will never forgive them if they destroy the farming industry as this tax will ultimately do.”

The issue has been raised in the context of rising food prices, farm closures and concerns about farmer confidence. 

Farming plays a significant role in areas such as Dartmoor and the wider South West Devon constituency, where agriculture and land management remain central to the local economy and rural life.

At a national level, senior Conservatives have also criticised the decision. Victoria Atkins, the Shadow Secretary of State, said the policy showed a lack of understanding of rural communities.

“The Family Farm and Business Tax has been imposed by a Labour Government that has no understanding of rural life or the importance of family farms,” she said. “We voted to scrap this tax and will continue to campaign to stop it.”

She added: “Labour have voted to push British farming into a food and farming emergency with their Family Farm and Business Tax and their other farming failures.”

Conservatives have also criticised Labour leader Keir Starmer, claiming the party does not have a clear plan for managing public finances and that farmers are being targeted as a result.

Labour has previously said it wants a fairer tax system and has argued that reforms are necessary as part of wider fiscal policy. 

However, Conservative MPs say the impact on family farms and rural businesses has not been adequately addressed.

The debate is expected to continue as the Finance Bill progresses through Parliament. 

Conservative MPs have said they will continue to campaign against the measure and have pledged to reverse it if they return to government.

For farming communities across Dartmoor and South West Devon, the outcome of the legislation is likely to remain a closely watched issue in the months ahead.