RACHEL Reeves has suffered another blow post-Budget as Labour MPs from rural areas have rebelled in a vote over inheritance tax for farmers.

Plans to introduce a 20% tax on farm estates worth more than £1m from April have drawn protesters to London in their tens of thousands, with many fearing huge tax bills that would force small farms to sell up for good.

In a vote on the so-called "family farms tax", one Labour MP voted against the proposal – Markus Campbell-Savours – who sided with the Conservatives.

Dozens of other Labour MPs abstained on the vote just after 8pm on Tuesday.

In the vote, Labour's vote slumped from 371 in the first vote on tax changes down to 327 despite still winning it comfortably.

The National Farmers Union had pleaded with Labour MPs to abstain from the vote.

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