Inheritance tax for farmers is by no means the first about turn this Government has resorted to.
Keir Starmer has been slammed for the Government’s many U-turns (Image: Getty)
Keir Starmer has been slammed for the number of U-turns made by the Government since Labour were elected in 2024. The latest is a change to inheritance tax for farmers. The Government watered down Rachel Reeves’s tax grab against in a surprise change in policy today (December 23).
Following intense backlash from rural communities, the threshold for the amount of agricultural assets that can be passed on without paying inheritance tax (IHT) will rise from £1million to £2.5million. This change comes after the Government announced a 20% tax on inherited agricultural assets worth over £1million from 2026, ending 45 years of 100% tax relief.
Environment Secretary Emma Reynolds said: “We have listened closely to farmers across the country and we are making changes today to protect more ordinary family farms.” But this is by no means the first U-turn this Government has resorted to.
Here’s a list of 11 other times Starmer U-turned on Government decisions…
The Government has U-turned and raised the inheritance tax threshold (Image: Getty)
Two-child benefit cap
The Government scrapped the two-child benefit cap in the autumn Budget, in a move that means benefits for around 560,000 families will rise by an average of £5,310. The U-turn came after the Prime Minister suspended seven Labour MPs for voting against the party to oppose the two-child benefit cap.
Income tax
The Chancellor U-turned on raising income tax ahead of the Budget, coming back in line with election promises not to after weeks of briefings suggesting that it may go up. According to the Financial Times, there were fears that raising the basic and higher income tax would anger voters and further antagonise mutinous Labour MPs.
Welfare reforms
The Government made changes to the welfare bill following opposition from Labour MPs, with cuts to the Personal Independence Payment (PIP) abandoned. The U-turn meant 50,000 people will be lifted out of poverty by 2030, according to the updated impact assessment by the Department for Work and Pensions.
Grooming gangs inquiry
Starmer announced that there would be a full statutory inquiry into grooming gangs after months of pushing back against demands for one. This was done after crossbench peer and safeguarding expert Louise Casey conducted a review of the grooming gang evidence based on smaller local inquiries.
Winter fuel payments
Rachel Reeves U-turned on plans to only give the winter fuel payment to those on pension credit. It will now be offered to pensioners with a yearly income of less than £35,000. This means nine million pensioners in England and Wales will get up to £300 to help with their energy bills during the colder months.
WASPI women
Work and Pensions Secretary Liz Kendall revealed in January that Women Against State Pension Inequality (WASPI) women would not be getting any compensation. In a U-turn, the Government announced it would revisit the decision to deny them £10.5billion in payouts due to changes to the state pension age.
Green investment
In 2021, Labour promised to invest £28billion in plans to reach climate targets and secure green jobs, including the creation of a publicly-owned green power company. But the party U-turned on this, saying they needed to be “responsible” with public finances, given the poor economic backdrop and rising cost of borrowing.
National Insurance
Labour said that it would ensure taxes on working people are kept “as low as possible”, promising not to increase National Insurance. Reeves U-turned in the 2024 autumn Budget, announcing that employers would have to fork out more in National Insurance contributions for their employees.
Bankers’ bonuses
The Prime Minister had previously opposed Liz Truss’s decision to remove the cap on bankers’ bonuses. But his Government has decided to keep this policy, and the i reports that this year’s City bonuses at the UK’s biggest banks jumped to more than £7billion.
Trans rights
Starmer told The Times in 2022 that “trans women are women” under the law. But, following a Supreme Court ruling in April, the Prime Minister said that he did not now believe that trans women are women, specifically saying that a woman is an “adult female”.
Royal Mail nationalisation
During the Labour leadership campaign, Starmer promised to take Royal Mail into public ownership. But, in 2024, a £3.6billion takeover by Czech billionaire Daniel Kretinsky’s EP Group was given the go-ahead.
