Keir Starmer has strongly defended the imposition of inheritance tax on farmland after new analysis suggested farmers are increasingly being squeezed out of the farmland market by wealthy investors.
Mr Starmer said he was “absolutely confident” that the vast majority of farmers would be exempt, as the government and the National Farmers Union (NFU) battle over the proportion of farms affected by the changes announced in last month's Budget. ” he said.
But the prime minister suggested to reporters on his way to the G20 summit in Rio de Janeiro that the message may not be getting through, adding: “It's important that we continue to communicate how it works.” he added.
Ministers claim the changes will prevent some investors from avoiding inheritance tax by investing in farmland, much of which is often used to produce little. .
There has been a significant increase in wealthy individuals and groups buying up farmland across England in recent years, with a parallel decline in the area of farmland actively used for farming, according to new analysis by the Labor Party. It was shown that
In 2010, these non-farmers accounted for less than a third of farmland purchases, but by last year that number had risen to 56%, according to data compiled by real estate consultancy Strutt & Parker.
According to official statistics on agricultural land use, 400,000 hectares (988,422 acres) fell into disuse last year alone. The analysis links this with financial advice that recommends the potential for tax relief from investing in farmland.
A Labor official said the party was “seeking a fair share for the most valuable and wealthy properties and farms” and that the money would be used to pay for public services that rural areas depend on.
Mr Starmer is due to attend the G20 summit, where farmers opposed to the plans are protesting in central London, and NFU chairman Tom Bradshaw said on Sunday that members felt “betrayed”. He said there was.
Asked about the anger, Mr Starmer pointed to the government's significant investment in agriculture, adding: “Obviously there are issues around inheritance tax and I understand the concerns.”
“But in the typical case, where parents own a farm and want one of their children to inherit it, by then they need to consider not only the exemption for the farm property itself, but also the exemption for the spouse. There will be £3m of inheritance tax to be paid from spouse and parent to child.
“That's why I'm absolutely confident that the vast majority of farms and farmers will not be affected by this. It's important for us to continue to communicate how it works.” , the interest rate will be 20% instead of the normal rate and will be paid over 10 years.
Mr Bradshaw told Sky News: “I have never seen such a unified sense of anger as there is in the industry today,” and predicted thousands of farmers would protest on Tuesday. he said.
He said: “The industry feels betrayed and angry. The government said it wasn't going to happen.”
Bradshaw said responsible farmers are often unable to access financing because they need to reinvest profits back into production, which can hurt profits and undermine long-term food security. Ta.
There was also an impact on farmers, especially older farmers who struggled to adapt to the new regime, he said. They spend everything on producing food in this country and they have no way of planning for it. That's the betrayal I'm talking about. The human impact of this is simply unacceptable. ”
Some farmers have raised the possibility of refusing supply to supermarkets in protest, but Mr Bradshaw said the union was not agreeing to this.
“That's not an NFU tactic,” he said. “We do not support emptying supermarket shelves, but we understand how farmers feel.”
The NFU warned protesting farmers not to bring heavy machinery, following in the footsteps of farmers in other countries who have blocked roads with tractors. Mr Starmer said those protesting had a right to express their views, but said police would respond appropriately.
“They have the right to express their views. I understand their concerns. It is important to reiterate that the support that is being put in is significant.” spoke. “How the protests take shape and what the response is will be a question of how they and the police respond to it.”
