Labour peer warns IHT plan 'risks alienating party in countryside'

Baroness Ann Mallalieu, president of the Countryside Alliance, has urged the government to u-turn
Baroness Ann Mallalieu, president of the Countryside Alliance, has urged the government to u-turn

A Labour peer has warned Sir Keir Starmer that he risks 'turning the countryside into a no-go zone' for the party with its inheritance tax proposals.

Baroness Ann Mallalieu, who is the president of the Countryside Alliance, warned that Rachel Reeves’ autumn budget risks 'alienating Labour in the countryside'.

Some 190 Labour MPs hold seats with at least some part of them being rural, an analysis by her group showed.

The warning comes as farmers plan to target rural constituencies held by Labour MPs across the country with a series of action days.

Anger is centred on the planned reform of agricultural property relief (APR), which will mean that farms worth over £1m will incur a 20% inheritance tax charge.

Baroness Mallalieu warned the prime minister that it would be "foolish to underestimate the overwhelming public support for our farmers".

“They are part of the national fabric. The budget and the subsequent fall out since then - which has only worsened - risks alienating Labour in the countryside and undoing a huge amount of good work in the years building up to the election.

"We have been here before as a party and we now risk turning the countryside into a no-go zone for Labour again."

She said this would be a 'disaster' for the party, and that action must be taken to avoid repeating the mistakes of the past.

"Focus must be on mending the relationship between the government and farmers and for Whitehall to be seen as doing things for the countryside, rather than just to it."

Several Labour MPs have urged the government to pause its farm inheritance proposals, which roll out from April 2026.

Tonia Antoniazzi, MP for Gower, said publicly last week that she supported the NFU's call for a pause on the government's proposed changes.

She added: “We need time to gather information to determine the full impact the changes will have to family farms in Wales.”

It comes as hundreds of farmers are set to rally in central London on 4 March, which would be the fourth time since the autumn budget announcement.

The 'Pancake Day Rally' aims to be 'bigger and better' than previous ones, in a bid to show MPs and the public farming’s determination not to accept the IHT proposals.