As part of the protests, the threshold at which farmers start paying inheritance tax was raised from £1 million to £2.5 million. The Prime Minister was forced to announce a reduction in family farm tax.
The Prime Minister and Chancellor made the correction in family farm tax under pressure from backbenchers. The increase in the threshold at which farmers start paying inheritance tax to £2.5 million halved the number of estates affected by the scheme.
In recent months, the government has backed down on several announcements, including winter fuel allowance, welfare reforms and a 2 child benefit cap.
When the farm tax policy was voted on, 30 Labour MPs abstained and one opposed. With this, the policy is being announced. The National Farmers Union has stated that it welcomes this withdrawal.
