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No10 refuses to apologise to farmers despite Keir Starmer’s U-turn on tax raid

Farmers across the UK have spent 14 months protesting against Rachel Reeves’s inheritance tax raid.

Keir Starmer

Keir Starmer (Image: Getty)

Downing Street has refused to apologise to farmers despite last week’s climbdown on inheritance tax.

Labour’s watered-down plans will see the relief threshold for farmers raised from £1 million to £2.5 million.

This comes after months of protests and warnings over farmers contemplating suicide to avoid the taxes as they pass their businesses from generation to generation.

But the Prime Minister’s spokesman on Monday declined to say “sorry” to food growers.

When asked whether Sir Keir Starmer was sorry, the PM’s spokesman said: “On the point about farmers taking their own lives, this is clearly a highly sensitive issue. Our thoughts are with any family affected and it would be inappropriate to discuss individual cases but, of course, the Government takes mental health support for farmers extremely seriously.”

When pressed on whether Sir Keir would apologise for the anguish caused, he added: “I think I’ve just said on the particularly sensitive issues our thoughts are with any family affected but we have listened to the community. These changes strike the right balance between supporting rural communities and maintaining fiscal responsibility.”

It was put to him one last time on whether the PM would apologise but none was offered.

Jonathan Charlesworth, who found his father John Philip Charlesworth dead in a barn on their farm in Silkstone, Barnsley, welcomed the U-turn last week but warned it “won’t bring back the lives lost over the last year or so due to the anxiety caused, but will hopefully prevent a flood of suicides running up to the commencement in April.”

No10 also denied trying to bury the U-turn by changing inheritance tax policy during the Christmas week, and said the move came after “open dialogue” with the farming sector.

Asked whether the December 23 announcement was chosen to quash news of a climbdown, the Prime Minister’s official spokesman said: “This decision was taken after careful consideration and engagement with the farming community and family businesses.

“And listening and responding to concerns is a sign of good government, not weakness.”
He later added: “We’re confident we’ve struck the right balance between supporting rural communities and maintaining fiscal responsibility.”

The higher inheritance tax threshold, which will take effect in April, will allow spouses or civil partners to pass on up to £5 million in qualifying agricultural or business assets between them before paying inheritance tax – on top of existing allowances, the Department for Environment, Food and Rural Affairs (Defra) said.

Above that allowance, farmers will get 50% relief on qualifying assets and will pay a reduced effective rate of up to 20%, rather than the standard 40%.

Farmers currently do not pay inheritance tax on agricultural and business assets which they pass on.

Under Labour’s initial proposal, the full 100% relief was to be restricted to the first £1 million of property.

The Daily Express had campaigned for a U-turn through the Save Britain’s Family Farms crusade.

Mo Metcalf-Fisher, of the Countryside Alliance, said: “It’s going to take a huge amount to rebuild the government’s relationship with the countryside and that starts with understanding the pain it’s caused, learning from it and legislating for rural communities, not against them”

Emma Mosey, chair of the Farm Retail Association, said: “The revisions announced by the government are a positive step in the right direction and provide a much-needed lifeline for the family farms that underpin our industry.

“However, it is a great shame that it has taken 14 months for the government to listen to the experts and the people on the ground.

“This period of uncertainty has caused significant anxiety for our members and has undoubtedly hindered the growth and succession planning of many rural

businesses.

“While we are relieved that common sense has finally prevailed, this move will not fully heal the damage done to the trust between the government and the farming community over the last year.”

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