1 week Ago By Brendan McFadden
Sir Keir Starmer has said he is “absolutely confident” that the “vast majority of farms and farmers” will not be affected by controversial changes to inheritance tax announced in the Budget. Many farmers have threated to strike over the changes, which they believe will destroy or break up family farms across the country. On Tuesday thousands of farmers plan to protest against the changes in central London and the National Farmers’ Union will hold a mass lobby of MPs in a bid to get the Government to rethink its move.
The Prime Minister said he didn’t believe most farmers would be affected by the changes due to Government investment in the sector and because he thinks most farmers won’t meet the criteria for paying it. Speaking on Sunday on the way to the G20 summit in Brazil, Sir Keir said the Government has put into the sector is “not to be overlooked” and pointed out it had put £5bn in the Budget for the next two years into farming. Speaking to reporters on the way to the G20 summit in Brazil, Sir Keir said: “I think it is very important that we support farmers.
“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 £3 million 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.” Read Next Starmer vows to defend Budget decisions amid farmers' tax backlash Ministers are drawing up contingency plans to deal with food shortages if farmers go on strike over the changes The rally on Tuesday will hear from celebrities and farming leaders while a procession to Parliament Square will be spearheaded by children on toy tractors. Organisers have told those coming that they should not bring their farm machinery.
On Sunday, the head of the farming union said that farmers are feeling “betrayed” about the changes to inheritance tax. National Farmers’ Union president Tom Bradshaw told Sky News: “I think the industry is feeling betrayed, feeling angry.” He added: “We have a Government saying food security is a critical part of national security, yet they’ve ripped the rug out from that very industry which is going to invest in food security for the future.
” Farmers have reacted with anger and dismay over the inheritance tax changes for farming businesses, which limit the 100% relief for farms to only the first £1 million of combined agricultural and business property. For anything above that, landowners will pay a 20% tax rate, rather than the standard 40% rate of inheritance tax (IHT) applied to other land and property. Treasury data shows that around three-quarters of farmers will pay nothing in inheritance tax as a result of the controversial changes.
However, farmers have challenged the figures, pointing instead to data from the Department for Environment, Food and Rural Affairs which suggests 66% of farm businesses are worth more than the £1 million threshold at which inheritance tax will now need to be paid. On Saturday (November 16) Sir Keir told the Welsh Labour conference he would defend his Chancellor’s Budget “all day long” as farmers protested against inheritance tax changes outside the venue. The Prime Minister told supporters in Llandudno that he will “defend facing up to the harsh light of fiscal reality” and taking “the tough decisions that were necessary to stabilise our economy”.
This included increasing employers’ national insurance and reforms to inheritance tax . Additional reporting by Press Association ..
