Keir Starmer Defends New Inheritance Tax Policy Amid Farmer Protests

Published on 18 November 2024 at 10:18

Keir Starmer Defends New Inheritance Tax Policy Amid Farmer Protests

UK Prime Minister Keir Starmer has stood by the government's new policy on inheritance tax for farms, despite mounting tensions with the National Farmers’ Union (NFU). The tax change, announced last month, has sparked fears among farmers that they may be pushed out of the market due to rising land prices, fueled by wealthy investors.

Speaking ahead of the G20 summit in Rio de Janeiro, Starmer emphasized his confidence that most farmers would be exempt from the new rules. "For the majority, this won't apply," he stated, acknowledging ongoing concerns but stressing the importance of clear communication about how the exemptions work.

Government ministers have argued that the new tax rules will curb tax avoidance by some investors who buy up farmland but leave it largely unused. Recent data indicates a surge in farmland purchases by wealthy individuals and institutions, with non-farmers responsible for over half of acquisitions last year, compared to less than a third in 2010. This trend has coincided with a drop in land actively used for farming.

Starmer’s defense comes as farmers prepare to protest in London, led by NFU President Tom Bradshaw, who described the industry’s sense of betrayal and frustration. According to Bradshaw, affected families may struggle to adapt, particularly older farmers who have invested their lives in food production and cannot easily adjust to the new policy’s demands. While the NFU has distanced itself from potential supermarket supply boycotts, it acknowledges the anger driving some farmers toward drastic measures.

Starmer reiterated the government’s commitment to supporting the farming sector but noted that the police would handle any necessary response to demonstrations. He encouraged farmers to make their voices heard, adding, “They’re entitled to express their views, and I understand their concerns. We’ll continue to communicate and ensure support is in place."

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