Rachel Reeves (Image: Simon Walker / HM Treasury)
Rachel Reeves has been urged to make a second major U-turn by reversing her hated inheritance tax raid on farmers. The demand comes 24 hours after the Chancellor’s humiliating climbdown over Winter Fuel payment cuts. Senior Tory Vicky Atkins said the punishing levy is another “grave injustice” that must be put right. Her warning comes amid fears that farmers will be clobbered again today, with the Chancellor expected to take a scythe to the government’s agricultural budget in her Spending Review.
Ms Reeves has been blasted by the farming community after she slapped a 20% inheritance tax in her October Budget.
Article continues belowADVERTISEMENT
Undo
DON'T MISS
Powered by
Disaster for Keir Starmer as tens of thousands demand general election now in new petition
Rachel Reeves tax bombshell as 3.35m people's savings to be hit
Labour is conducting an assault on rural Britain with cruel family farm tax
Rachel Reeves has lost Labour the election and sent farmers to Reform UK
Breathtaking betrayal of UK taxpayers that even Emmanuel Macron can see
Fury over suggestion state pension age could be increased to 80
Jeremy Corbyn at war with Angela Rayner over plans to concrete over Britain's allotments
Keir Starmer's false advertising and 3 assurances Labour are failing on
New poll reveals exactly what Brits think of migration - it's bad news for Keir Starmer
Nigel Farage issues 8-word statement after Reform trans row erupts
New poll reveals Keir Starmer and Rachel Reeves are now less popular than Donald Trump
POLL: Will Keir Starmer's ‘one in, one out' deal stop the boats?
Angela Rayner told 'there's still time' to reject Chinese Super Embassy in London
Labour proves Keir Starmer is busted flush with move showing it can get even worse
Deluded Keir Starmer shows how wrong Labour's priorities are with one new scheme
Labour surrendered on housing within days - here are vital steps they won't take for UK
Labour MP under investigation over Israel-Palestine trip
Rachel Reeves issued major warning by business bosses over jobs
Where will it end? Now Angela Rayner threatens allotments with war
Britain's seaside towns can be saved with one simple move by Labour
Disaster for Keir Starmer as tens of thousands demand general election now in new petition
Rachel Reeves tax bombshell as 3.35m people's savings to be hit
Labour is conducting an assault on rural Britain with cruel family farm tax
Rachel Reeves has lost Labour the election and sent farmers to Reform UK
Breathtaking betrayal of UK taxpayers that even Emmanuel Macron can see
Fury over suggestion state pension age could be increased to 80
Jeremy Corbyn at war with Angela Rayner over plans to concrete over Britain's allotments
Keir Starmer's false advertising and 3 assurances Labour are failing on
New poll reveals exactly what Brits think of migration - it's bad news for Keir Starmer
Nigel Farage issues 8-word statement after Reform trans row erupts
New poll reveals Keir Starmer and Rachel Reeves are now less popular than Donald Trump
POLL: Will Keir Starmer's ‘one in, one out' deal stop the boats?
Angela Rayner told 'there's still time' to reject Chinese Super Embassy in London
Labour proves Keir Starmer is busted flush with move showing it can get even worse
Deluded Keir Starmer shows how wrong Labour's priorities are with one new scheme
Labour surrendered on housing within days - here are vital steps they won't take for UK
Labour MP under investigation over Israel-Palestine trip
Rachel Reeves issued major warning by business bosses over jobs
Where will it end? Now Angela Rayner threatens allotments with war
Britain's seaside towns can be saved with one simple move by Labour
Disaster for Keir Starmer as tens of thousands demand general election now in new petition
Rachel Reeves tax bombshell as 3.35m people's savings to be hit
Labour is conducting an assault on rural Britain with cruel family farm tax
Rachel Reeves has lost Labour the election and sent farmers to Reform UK
Breathtaking betrayal of UK taxpayers that even Emmanuel Macron can see
Fury over suggestion state pension age could be increased to 80
Jeremy Corbyn at war with Angela Rayner over plans to concrete over Britain's allotments
Keir Starmer's false advertising and 3 assurances Labour are failing on
New poll reveals exactly what Brits think of migration - it's bad news for Keir Starmer
Nigel Farage issues 8-word statement after Reform trans row erupts
New poll reveals Keir Starmer and Rachel Reeves are now less popular than Donald Trump
POLL: Will Keir Starmer's ‘one in, one out' deal stop the boats?
Angela Rayner told 'there's still time' to reject Chinese Super Embassy in London
Labour proves Keir Starmer is busted flush with move showing it can get even worse
Deluded Keir Starmer shows how wrong Labour's priorities are with one new scheme
Labour surrendered on housing within days - here are vital steps they won't take for UK
Labour MP under investigation over Israel-Palestine trip
Rachel Reeves issued major warning by business bosses over jobs
Where will it end? Now Angela Rayner threatens allotments with war
Britain's seaside towns can be saved with one simple move by Labour
Don't miss: Rachel Reeves makes huge admission over winter fuel payment cut
British farmers march past parliament to voice their objections and concerns over the 20 per cent in (Image: In Pictures via Getty Images)
Many farmers as well as TV personality Jeremy Clarkson have held protests and rallies over the measure which will kick-in next year.
The Daily Express's Save Britain's Family Farms crusade has campaigned against the issue.
Hopes of a reversal were raised when Ms Reeves restored the winter fuel allowance to nine million pensioners this week.
Sponsored
Learn More
6 Ways Retirees Can Potentially Minimize RMD Taxes
Undo
But speaking exclusively to this newspaper Ms Reeves insisted that her policy on farms is “the right balance” and “a fair settlement”.
Asked whether she would reconsider the move the Chancellor said: “No, look, we've just had a conversation about the difficult decisions and the balancing act.
“We can make these changes about winter fuel, but difficult choices still remain about the balance of spending on taxation, and that's why we are going to go ahead with those changes.”
An influential committee of MPs has urged the government to delay the changes - which are due to kick-in next April - to help protect vulnerable farmers by giving them more time to seek advice.
But explaining her refusal to budge on the issue, Ms Reeves added: “It does mean that if you have a farm and it's owned by a couple, and you've got a house on the property, you can pass on ￡3 million tax free.
“And in addition, the tax rate even when it's above 3 million pounds, the tax rate is just 20% compared to 40% inheritance tax for everyone else.
“That is the right balance to support our farmers. And of course, the farmers got a record settlement in the Spending Review The first phase of it last year.
“But I think that is the right balance to have a fair settlement for farmers, but also a fair settlement for other taxpayers.”
The Tories have repeatedly called on the government to reverse the policy.
Ms Atkins, the shadow environment secretary, added: “Keir Starmer and Rachel Reeves’ decision to introduce the Family Farms Tax in the Autumn budget remains utterly indefensible, and a stain on this country and this government.
“This is not just an existential threat to our rural communities, and their way of life, but a serious risk to this country as a whole.
“This week’s Winter Fuel U-turn has shown us that there is a path to victory, and under enough pressure, even this government is capable of realising the error of their ways and correcting course.”
NFU President Tom Bradshaw urged the government to “listen again” to protect British farmers.
Farmers park their tractors in Whitehall (Image: Jonathan Buckmaster)
Don't miss: Rachel Reeves under pressure to close tax loophole costing war veterans milli...
Don't miss: Rachel Reeves bombshell VAT plans face furious backlash from charities
Don't miss: Yvette Cooper refuses to set migration target in huge grilling by MPs
Trending
He said: “We have put forward a credible alternative on inheritance tax that is fair and balanced that would protect British farmers without being costly to the Treasury.
“Just as the government has listened on winter fuel payments, it must now listen again, in order to protect Britain’s farmers who for generations have cared for the land and produced our food.”
Ms Reeves is widely expected to use her Spending Review to cut a post-Brexit farming fund, which Labour had promised a fund of ￡5billion over two years until 2026.
However, it will be slashed for all but a few farms beyond next year as Ms Reeves sets out budgets for each government department for the rest of this parliament, set to end in 2029.
The National Trust and RSPB have joined forces with farmers to warn that cutting the agricultural budget could be "catastrophic" for nature and rural businesses.
In a letter to food security and rural affairs minister Daniel Zeichner a dozen of the biggest rural industry organisations say they are "deeply concerned" about the move.
"Many of the environmental features present in the countryside and enjoyed by the public will be under threat and will disappear," the letter says.
DON'T MISS
Powered by
Jeremy Corbyn at war with Angela Rayner over plans to concrete over Britain's allotments
Keir Starmer's false advertising and 3 assurances Labour are failing on
New poll reveals exactly what Brits think of migration - it's bad news for Keir Starmer
Nigel Farage issues 8-word statement after Reform trans row erupts
New poll reveals Keir Starmer and Rachel Reeves are now less popular than Donald Trump
POLL: Will Keir Starmer's ‘one in, one out' deal stop the boats?
Angela Rayner told 'there's still time' to reject Chinese Super Embassy in London
Labour proves Keir Starmer is busted flush with move showing it can get even worse
Deluded Keir Starmer shows how wrong Labour's priorities are with one new scheme
Labour surrendered on housing within days - here are vital steps they won't take for UK
Labour MP under investigation over Israel-Palestine trip
Rachel Reeves issued major warning by business bosses over jobs
Where will it end? Now Angela Rayner threatens allotments with war
Britain's seaside towns can be saved with one simple move by Labour
11 Harry Potter Actors Who Grew Up Stunningly.Boite A Scoop |
Undo
Disaster for Keir Starmer as tens of thousands demand general election now in new petition
Rachel Reeves tax bombshell as 3.35m people's savings to be hit
Here's The Estimated Cost of a 1-day Gutter Guards InstallationHomeBuddy |
Click Here
Undo
Labour is conducting an assault on rural Britain with cruel family farm tax
Rachel Reeves has lost Labour the election and sent farmers to Reform UK
Clinical trials are underway. Invest in OA research.Cytonics | StartEngine |
Learn More
Undo
Breathtaking betrayal of UK taxpayers that even Emmanuel Macron can see
Fury over suggestion state pension age could be increased to 80
Encouraging news for Parkinson's patients!Curation Connect |
Learn More
Undo
Jeremy Corbyn at war with Angela Rayner over plans to concrete over Britain's allotments
Keir Starmer's false advertising and 3 assurances Labour are failing on
ED Holding You Back? Recharge with Viagra from Rex MDRex MD |
Learn More
Undo
New poll reveals exactly what Brits think of migration - it's bad news for Keir Starmer
Nigel Farage issues 8-word statement after Reform trans row erupts
An $390B disruptorCytonics | StartEngine |
Learn More
Undo
New poll reveals Keir Starmer and Rachel Reeves are now less popular than Donald Trump
POLL: Will Keir Starmer's ‘one in, one out' deal stop the boats?
The Greatest Enemy Tinnitus Has? Try this trick tonight!HearWellCenter |
Undo
Angela Rayner told 'there's still time' to reject Chinese Super Embassy in London
Labour proves Keir Starmer is busted flush with move showing it can get even worse
WARNING: You’re Missing Out on Huge Savings on Mattresses OnlineQuestionHero |
Learn More
Undo
Deluded Keir Starmer shows how wrong Labour's priorities are with one new scheme
Labour surrendered on housing within days - here are vital steps they won't take for UK
Has your antivirus license expired?McAfee.com |
Click Here
Undo
Labour MP under investigation over Israel-Palestine trip
Rachel Reeves issued major warning by business bosses over jobs
Find Your Lowest Auto Insurance Rate [Check Now]AutoSaveMax |
Get Quote
Undo
Where will it end? Now Angela Rayner threatens allotments with war
Britain's seaside towns can be saved with one simple move by Labour
Disaster for Keir Starmer as tens of thousands demand general election now in new petition
Rachel Reeves tax bombshell as 3.35m people's savings to be hit
Labour is conducting an assault on rural Britain with cruel family farm tax
Rachel Reeves has lost Labour the election and sent farmers to Reform UK
Breathtaking betrayal of UK taxpayers that even Emmanuel Macron can see
Fury over suggestion state pension age could be increased to 80
Jeremy Corbyn at war with Angela Rayner over plans to concrete over Britain's allotments
Keir Starmer's false advertising and 3 assurances Labour are failing on
New poll reveals exactly what Brits think of migration - it's bad news for Keir Starmer
Nigel Farage issues 8-word statement after Reform trans row erupts
New poll reveals Keir Starmer and Rachel Reeves are now less popular than Donald Trump
POLL: Will Keir Starmer's ‘one in, one out' deal stop the boats?
Angela Rayner told 'there's still time' to reject Chinese Super Embassy in London
How to Talk to Your Doctor About Switching to Branded GLP-1 MedicationsGoodRx
Undo
Sponsored LinksSponsored Links
Haven't updated in a while?McAfee.com
Undo
Sponsored LinksSponsored Links
MeiraGTx Secures $200M Deal with Hologen AI to Advance Parkinson's Gene TherapyCuration Connect
Undo
Sponsored LinksSponsored Links
This Simple Home Trick Is the Greatest Enemy Tinnitus HasHearWellCenter
Undo
Sponsored LinksSponsored Links
Sir Keir Starmer's government has made getting to net zero by 2050 a key goal, already initiating several policies to restrict carbon emissions and make the UK greener since winning the election last July.
However, the government shocked farmers in March when it shut down applications for the Sustainable Farming Incentive (SFI), which rewards farmers for managing their land in environmentally sustainable ways, with just a few hours' notice as they said a cap had been reached for the year.
The rural organisations say the Environmental Land Management (ELM) scheme payments are "critical to the government's statutory targets on environmental improvement", including the main goal of halting the decline of biodiversity.
SUBSCRIBEInvalid email
We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. Read our Privacy Policy