The Prime Minister was grilled on the tax changes for farmers as he faced MPs on the Liaison Committee
Sir Keir Starmer was confronted by a Labour MP over the inheritance tax raid on farmers during a grilling today. Cat Smith asked the Prime Minister about elderly farmers being pushed to the brink of suicide by plans to slap inheritance tax on farms worth over £1 million from next April.
The moment came as Sir Keir took questions from cross-party MPs on the Liaison Committee. Ms Smith, the MP for Lancaster and Wyre, said: “You’ve repeatedly said the economic mission of this government is to be on the side of working people. Is that still your position?”
Ms Smith then asked: “Do you consider farmers, many of whom are getting up at 4am and working 365 days a year feeding the nation, to be working people, yes or no?”
The Prime Minister said: “Yes I do.”
Ms Smith went on: “Last year rural communities including many farmers put their trust in Labour for the very first time in a very long time and gave us a mandate for change in this country.
“However and I hear this from many of the 950 farm holdings in my constituency feel like they were misled around the changes to inheritance tax which are going to pull the rug from underneath farming communities and obliterate the family farm for many farmers.
“We’re in a situation now where elderly farmers or farmers with a terminal diagnosis and are in position whereby if they die before April their farm will be passed to the next generation with no tax implications but if they die after the potential of their family farm being completely unviable.
“Can you see how farmers can feel like this government hasn’t necessarily treated them the way they expected to be treated as working people?”
Labour MP Cat Smith grilled the PM about the inheritance tax changes for farmers (Image: PARLIAMENT TV)
Sir Keir said: “I do understand the concern and I met with the President of the National Farmers Union just last week as I’ve met with him before to run through the particular concerns they have.
“I do think on agricultural property relief there had to be sensible reform and I think this is sensible reform.”
Pressed if he would consider changing course, Sir Keir added: “The vast majority of farmers will not be affected at all and of those that are affected the rate that’s paid is half the rate over a 10-year period.”
Ms Smith then asked: “Is the Prime Minister aware that some farmers who have terminal diagnosis now are actively planning to expedite their own death to make it before April?”
Sir Keir replied: “I’ve had discussions with a number of individuals who have drawn all manner of things to my attention.”
It comes as the Government has faced an ongoing backlash for removing the 100% inheritance tax relief for farmers in in Chancellor Rachel Reeves‘s first Budget.
