Sir Keir Starmer may be softening his stance on changes to inheritance tax, according to the boss of the National Farmers’ Union (NFU).
After a meeting in No 10 with the prime minister on Monday, NFU president Tom Bradshaw claimed there was “a more conciliatory tone” regarding the controversial change which some have dubbed a “tractor tax”.
It came as farmers descended on the port in Dover to continue to heap pressure on the government.
Mr Bradshaw said: “We are trying to give it a bit of room to breathe. He hasn’t guaranteed me anything but I think there is a general softening of lines and I don’t want to stoke the fire.”
In a video update to NFU members, he said: “I had a great opportunity to be invited into 10 Downing Street by the prime minister. We’ve been able to present outside of the discussion around what the changes… are going to mean for you, your family and your future.
“The prime minister is very much in listening mode, and I hope that he’s able to act on what he’s heard this afternoon.”
Mr Bradshaw said: “We will continue to fight this, I want to work with the government but they are making it incredibly difficult.”
His comments followed the news that at least 100 fed-up farmers are set to take to their tractors in a go-slow protest targeting Dover to show their frustration with the Labour government.
The tractors were used in a “rolling rally” with ferry passengers, lorry drivers and members of the public showing their support.
Farmer Gareth Wyn Jones said: “They all know this is more than just about farmers now.”
The prime minister did not seem ready to compromise when he was put on the spot by Tory Scottish MP Harriet Cross who raised how it had affected one of her constituents.
Ms Cross said: “Sarah and her family have farmed beef cattle in my constituency for over 70 years and they had always planned for her sister to continue the family legacy. Earlier this year, Sarah’s mother died suddenly and unexpectedly. She was just 58.
“Sarah said to me that, despite already having a tragic year, it was made even worse after the Budget. She said: ‘Changes to agricultural property relief have hit us hard while we’re already struggling to cope with bereavement and losing Mum.’ What would the Prime Minister say to Sarah and her family, in what has been the most difficult year of their lives, in the light of the family farm tax?”
While expressing sympathy and asking to be sent details of the case, Sir Keir stood by the policy.
He said: “On the question of inheritance of family farms, it is important to bear in mind that in a typical case, which is parents passing to a child, the threshold is £3 million, and that is why, as she knows, the vast majority of farms will be totally unaffected.”
It comes days after Labour peer Baroness Mallalieu, who is president of the Countryside Alliance and joined farmers on a march against the tax changes, now warned her government that it is losing the trust of rural communities.
The changes, announced by Rachel Reeves last month, will mean farms valued at £1m or more will be liable for 20 per cent inheritance tax.
The Treasury says with tax allowances, in reality only farms worth £3m will be hit - or around 500 each year. But the NFU believes around three in four family farms will be affected by the tax change, putting already wafer-thin profit margins under further strain and even forcing some to sell up to pay inheritance tax bills.
Sir Keir Starmer insisted his government supported farmers but indicated on Friday that he would not be u-turning on the policy, and warned the money is needed to fund public services.
The prime minister told BBC Bristol: “We’re for working people who need to be better off, who’ve really struggled over recent years.
“We’re for everybody who wants to and needs to rely on the NHS, which is on its knees, and we’ve got to pick it up and we will and get those waiting lists down.”
“We’re rooting for British Farmers”
— Emily Sheffield (@emilysheffield) November 27, 2024
YES 🙌 Morrisons truck beside me on the motorway on our way back to London - go for it @Morrisons
End the Family Farm Tax! pic.twitter.com/wYSvlxfGuu
He has previously said the “vast majority of farms and farmers” will be unaffected by the changes announced in the Budget.
But last week an estimated 13,000 people marched on Westminster to protest the levy, dubbing the PM “Keir Starmer farmer harmer”.
The protest saw TV personality Jeremy Clarkson urge the government to back down over the policy, saying it is a “hammer blow to the back of the head” for the agricultural industry.
He begged the government to “accept this was rushed through, wasn’t thought out, and was a mistake”.
Meanwhile, Tory leader Kemi Badenoch promised to reverse the policy if her party wins the next election, describing it as “cruel and wrong”.
A government spokesman said: “We remain committed to fully implementing the policy and are not considering mitigations.”
