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Sir Keir Starmer has doubled down on his claim that the “vast majority of farms and farmers” will be unaffected by changes to inheritance tax announced in the Budget ahead of a major demonstration over the tax hike on Tuesday.
The row has rumbled on since the Budget, when it was announced that farmers will have to pay 20 per cent of tax on inherited agricultural assets worth more than £1m from April 2026.
Critics warn that the new tax grab will destroy family farms, which make up around two-thirds of Britain’s agricultural base.
The PM has attempted to persuade farmers that the sector is a priority for the government, telling reporters on Sunday that the money the Treasury has put into farming is “not to be overlooked”.
His latest comments came as farmers gear up to stage a major protest in London on Tuesday. Separately, the National Farmers’ Union (NFU) will hold a mass lobby of MPs in an attempt to persuade the government to rethink its plans.
Speaking to reporters on the way to the G20 summit in Brazil, the prime minister said “it is very important that we support farmers” but insisted he is “confident” most will not be affected by the changes.
Asked whether he accepted that farmers feel betrayed, Sir Keir said: “I think it is very important that we support farmers. That’s why we’ve put £5bn in the Budget for the next two years into farming.
“That is not to be overlooked”, he said, and also pointed to other cash that has been set aside in relation to flooding and disease outbreaks.
He added: “Obviously, there’s an issue around inheritance tax and I do understand the concern.
“But for a typical case, which is parents with a farm they want to pass on to one of their children, by the time you’ve taken into account not only the exemption for the farm property itself, but also the exemption for spouse to spouse, then parent to child, it’s £3m before any inheritance tax will be payable.
“That’s why I am absolutely confident the vast majority of farms and farmers will not be affected by this.”
The organisers of the protest have had to relocate the event in Westminster because Trafalgar Square is not big enough to contain the number of people who plan to attend, The Independent revealed last week.
The protest, due to take place on 19 November, is now expected to easily exceed the original 5,000 to 10,000 estimated by the Farming Forum which is organising it.
Those taking part have been asked to start gathering in Richmond Terrace, by Victoria Embankment Gardens, from 11am.
The march will be led by farmers’ children on toy tractors “signifying the impact of the devastating Budget on the future of farming and the countryside”, say organisers.
It is expected that protesters will be joined by celebrities including Jeremy Clarkson and politicians with speeches outside Downing Street. They will also be addressed by NFU president Tom Bradshaw, who has been extremely critical of the government’s announcement.
The row over the tax was enflamed by leading Labour figure John McTernan, who last week suggested that the country does not need family farms.
Sir Keir was forced to distance himself from the remarks after Mr McTernan said family farming is “an industry we can do without”.
Treasury data shows that around three-quarters of farmers will pay nothing in inheritance tax as a result of the controversial changes.
But farmers have challenged the figures, pointing instead to data from the Department for Environment, Food and Rural Affairs, which suggests 66 per cent of farm businesses are worth more than the £1m threshold at which inheritance tax will now need to be paid.
Baroness Mallalieu, a Labour peer and the president of the Countryside Alliance, has said the changes “smell of incompetence”.
She told BBC Radio 4’s Westminster Hour: “There was no impact assessment done. The figures differ between the Treasury and Defra, and certainly differ from those of the NFU.
“But I hope what they will do is look at it very carefully, and just see what the unintended consequences were.”
Meanwhile, farmer Gareth Wyn Jones told GB News he wont be selling any lamb or any beef this week to “show what’s to come in the future”.
He said the government is failing to protect “the people that are feeding them”, adding: “We are going to have serious problems in the foreseeable future with food shortages.”
“As an industry, our job is to produce food affordably, seasonably, help feed nutritious food for everybody in this country. If we have a 20 per cent increase in inheritance tax, we’re going to have to get it from somewhere.
“The only way we can do it is to add on to our produce and once that produce is up 20 per cent, the poorer people in society are going to struggle”, he continued.
A government spokesperson said: “The government’s commitment to our farmers remains steadfast. It’s why we have committed £5 billion to the farming budget over two years – more money than ever for sustainable food production.
“We understand concerns about changes to Agricultural Property Relief but the majority of those claiming relief will not be affected by these changes. Around 500 claims each year will be impacted and farm-owning couples can pass on up to £3m without paying any inheritance tax.
“This is a fair and balanced approach that protects the family farm while also fixing the public services that we all rely on.”
Source: independent.co.uk
