Rayner fails to rule out further IHT raid on farmers

The Tories warned that Labour will “come back for more” after Angela Rayner failed to rule out a further inheritance tax raid on farmers.

Alex Burghart, the shadow chancellor of the Duchy of Lancaster, sought a commitment from the Deputy Prime Minister that “there will be no further increases to inheritance tax and no further reductions to agricultural property relief or business property relief in this Parliament”.

But Ms Rayner, who was filling in for Sir Keir Starmer at PMQs, dodged the question as she insisted that “the vast majority of estate owners will be totally unaffected” by the so-called tractor tax.

Mr Burghart, who was standing in for Kemi Badenoch, said: “Everyone here and all the farmers at home will have heard there was no guarantee there. We know what that means: They are coming back for more.”

The senior Tory claimed that Labour was punishing groups of people who did not vote for the party at the general election, as he pointed to the tractor tax, VAT being imposed on private school fees and employer National Insurance contributions going up.

Ms Rayner later claimed that there had been “scaremongering” around the tractor tax and said: “Our plan is sensible, fair and proportionate and protects the smaller estates while fixing public services that they rely on.”

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03:15 PM GMT

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02:55 PM GMT

Atkins takes aim at Reed for ‘hiding’ from farmers

Victoria Atkins claimed Steve Reed was “hiding” from farmers after The Telegraph revealed the Environment Secretary had only visited a farm once in his first three months in the role.

Ms Atkins, the shadow environment secretary, suggested it fit within a wider theme of a lack of Government engagement with farmers:

02:37 PM GMT

Tories: Labour taking from farmers, giving to trade unions

02:29 PM GMT

No 10 on farmers avoiding tractor tax: ‘It is always for individuals to take advice on their arrangements’

Downing Street has insisted it is not advising farmers to seek to avoid the tractor tax despite ministers pointing out ways people could reduce the amount they pay, writes Amy Gibbons.

Daniel Zeichner, the rural affairs minister, said yesterday that those affected could avoid the inheritance tax raid “with a bit of planning”.

Asked if that defeated the purpose of raising the tax, a No 10 spokeswoman told reporters this afternoon: “No, it is always for individuals to take advice on their arrangements. That is for them, and it’s always been for individuals to operate within the rules as they are set out.”

Pressed on whether the Government only believed tax avoidance was morally wrong when it doesn’t “like the people” doing it, she said: “No, I wouldn’t characterise it that way.”

Asked whether giving advice on how to avoid the tax was part of the Government’s communications plan, she said: “No, I was simply pointing to the policy as it is.”

01:46 PM GMT

No 10 ‘confident’ its assessment of impact of tractor tax is correct

The Government is confident in its estimate that the vast majority of farmers will remain unaffected by inheritance tax changes, Downing Street said.

Asked who Deputy Prime Minister Angela Rayner had in mind when she claimed in the Commons that farmers had been victim to scaremongering (see the post below at 12.35), a No 10 spokeswoman said: “You have the Deputy Prime Minister’s own words.

“I think obviously the Prime Minister in his press conference yesterday recognises that there are concerns amongst farmers about the policy and that is why the Government has a job to do to communicate the policy and our expectation, which is that the vast majority of farmers will be unaffected by the change.”

She added: “That is because the Treasury’s figures are based on actual claims looked at by HMRC and which take into account different individual circumstances of different farms. We are confident in those figures and urge farmers to look at their arrangements in light of that.”

Asked if there were plans to increase inheritance tax on farms in future, or make changes to other tax reliefs available to farmers, the spokeswoman said Downing Street would “never rule in or rule out” measures the Chancellor could take at a future Budget.

01:21 PM GMT

Environment Secretary ‘City Steve’ visited only one farm since Labour came to power

The Environment Secretary visited a farm just once in his first three months in the job, it has emerged.

Steve Reed is one of the cabinet ministers leading the arguments that Labour’s inheritance tax raid on farmers is justified.

He was appointed to head up the Department for Environment, Food & Rural Affairs (Defra) after Labour’s election victory this summer, having shadowed the brief in opposition.

But a freedom of information request has revealed that since taking up the role on July 5 and Oct 15, more than three months later, he made just a single visit to a farm in his official capacity.

You can read the full story here. 

01:04 PM GMT

Rayner denies ‘declaring war’ on farmers

Angela Rayner denied the Government had “declared war” on farmers with its inheritance tax raid.

Saqib Bhatti, a Tory MP, told Angela Rayner: “Yesterday I met with three constituents in Parliament. Duncan Horley, his wife Nicola and his 10 year old daughter Hattie.

“Duncan is a sheep farmer and he has stewarded his family farm for most of his life. He is outraged and hurt and worried about the Government’s deeply damaging family farm tax and he is deeply worried about food security, food inflation and whether he will even be able to pass that farm on to future generations.

“So my question to the Deputy Prime Minister is very simple. Why has this Labour Government declared war on British farmers?”

The Deputy Prime Minister replied: “Well, I say to the honourable gentleman and to Duncan and Nicola that this Government hasn’t declared war on farmers.

“The vast majority of farms will not pay any inheritance tax and we have protected them, we have been as generous as we can and the farmers rely on our public services like everybody else.

“We inherited a £22 billion black hole from the Conservatives who spent reserves three times over.”

12:38 PM GMT

Lee Anderson urges Rayner to ditch ‘madcap’ tractor tax

Lee Anderson, a Reform UK MP, said the inheritance tax raid on farmers was a “madcap decision”.

He asked: “Does the Deputy Prime Minister agree with me that this decision should be thrown in the trash can along with Rachel from accounts’ CV?”

Ms Rayner said: “He talks about CVs, it is good to see the honourable member doing well on his. Once a Labour councillor, then a Tory MP and now a Reform chief whip.”

12:35 PM GMT

Rayner claims there has been ‘scaremongering’ over tractor tax

The Liberal Democrats said farmers believed they had been “lied to” by the Labour Party.

Daisy Cooper, the deputy leader of the Lib Dems, told Angela Rayner: “Farmers told me yesterday that they feel like they were betrayed by the Conservatives and they now feel that they have also been lied to by Labour.

“Will the Deputy Prime Minister think again on this measure so that our farmers can feed Britain?”

Ms Rayner claimed there had been “scaremongering” around the tractor tax.

She said: “Our plan is sensible, fair and proportionate and protects the smaller estates while fixing public services that they rely on.”

12:28 PM GMT

Labour punishing people who do not vote for them, claims Burghart

Labour is punishing people who did not vote for ther party at the general election, the shadow chancellor of the Duchy of Lancaster claimed.

Alex Burghart said: “I understand why the right honourable lady doesn’t want to answer questions about the terrible choices the Government has made. It is because the truth is ugly.

“The truth is that this is a punishment meted out to people who don’t vote Labour. It is the same punishment meted out to parents who send their children to private schools. It is the same punishment meted out to the owners of small businesses terrified about National Insurance contributions.

“And it is the same punishment meted out to pensioners who can’t afford to pay their fuel this winter. Isn’t it the truth that if you don’t vote Labour they don’t care about you?”

Angela Rayner said: “After that display he clearly didn’t recognise the result of the general election.”

12:21 PM GMT

Labour will come back for more on inheritance tax raid, claims Burghart

Alex Burghart said Angela Rayner’s failure to rule out further inheritance tax raids (see the post below at 12.17) showed Labour was going to “come back for more”.

The senior Tory told the House of Commons: “Everyone here and all the farmers at home will have heard there was no guarantee there. We know what that means: They are coming back for more.”

Ms Rayner said: “I think it is an audacity for the honourable gentleman to stand there and suggest in some way that Labour broke promises or raised taxes when, I will school the honourable gentleman, it was his government that raised taxes to their highest level for a generation.”

12:17 PM GMT

Rayner fails to rule out further inheritance tax raid on farmers

Angela Rayner failed to rule out further inheritance tax raids.

Alex Burghart said: “Perhaps the right honourable lady thinks that everyone came to London yesterday to thank the Government. Let’s look at the facts. A typical mid-size 360 acre family farm in the constituency of Thirsk and Malton, they have spoken to their accountant, their new liability because of this Government is £500,000.

“That is 12 years worth of profit. When this generation passes away, that farm will become totally unviable and it is just one of thousands and thousands of similar farms. It is clear the Government hasn’t got its facts right.”

He added: “if the Government isn’t going to reverse this terrible policy, will the right honourable lady at least commit that there will be no further increases to inheritance tax and no further reductions to agricultural property relief or business property relief in this parliament?”

Ms Rayner replied: “He talks about the facts and I absolutely stand by the figures the Government has set out and the vast majority of estate owners will be totally unaffected.”

12:11 PM GMT

Farmers worried their way of life will be destroyed, Burghart tells Rayner

Turning to the tractor tax, Alex Burghart said he had spoken to “elderly men in tears, children worried about their parents, all of them worried that their way of life is about to be destroyed”.

He asked Angela Rayner: “What would the right honourable lady like to say to them?”

The Deputy Prime Minister said: “We are absolutely committed to our British farmers and that is why we have committed £5 billion to the farming budget over the next two years.”

12:08 PM GMT

Burghart accuses Labour of ‘stoking inflation’

Alex Burghart claimed the Government was “stoking inflation”.

Referring to inflation-busting public sector pay rises and the Budget, the Tory frontbencher said: “The truth is this Government isn’t doing anything to bring down inflation, this Government is stoking inflation.”

He asked Angela Rayner if she agreed that the Government’s decisions mean “higher inflation for working people”.

Referring to inflation highs under the Tories, the Deputy Prime Minister replied: “I will ask the honourable gentleman: 11.1 per cent or 3 per cent?”

12:05 PM GMT

Burghart and Rayner clash over rising inflation

Alex Burghart used his first question at PMQs to ask Angela Rayner about the increase in inflation.

The shadow chancellor of the Duchy of Lancaster asked: “What is the Government doing to bring down inflation?”

Ms Rayner pointed to Mr Burghart’s and the Tories’ record on inflation when they were in power and claimed Labour is “doing much better than he did”.

12:03 PM GMT

Rayner: UK will stand with Ukraine for as long as it takes

Prime Minister’s Questions is now underway as Angela Rayner faces Alex Burghart.

Ms Rayner, the Deputy Prime Minister, started by referencing Sir Keir Starmer’s attendance at the G20 summit in Rio de Janeiro.

She said that Sir Keir used the summit to “strength the UK’s ties to major economies”.

She also marked 1,000 days of the “barbaric” Russian invasion of Ukraine.

“We will stand with Ukraine for as long as it takes,” she said.

11:59 AM GMT

Rayner and Burghart arrive for PMQs

Angela Rayner and Alex Burghart have both now arrived in the House of Commons and have taken their seats on the frontbenches.

Both were given a warm welcome by their respective groups of MPs.

11:55 AM GMT

Commons filling up ahead of PMQs

The House of Commons is steadily filling up ahead of Prime Minister’s Questions at noon.

The Labour benches are already pretty much full but there are still some gaps on the Opposition benches.

Angela Rayner and Alex Burghart are yet to arrive.

11:22 AM GMT

Tractor tax and winter fuel raid likely to dominate PMQs

Alex Burghart will not be short of ammunition when he grills Angela Rayner at Prime Minister’s Questions at lunchtime.

Two issues are likely to dominate and both are a gift for the Tories.

The first is the rumbling row over the Government’s inheritance tax raid on farmers. Ministers are digging in and refusing to budge but with further protests likely, it looks like this particular issue will run and run.

The second is the impact of Labour’s decision to scrap winter fuel payments for 10 million pensioners.

An official impact assessment published yesterday concluded that up to 100,000 pensioners will be pushed into poverty by the decision.

Two big political issues and both very problematic for Labour. Truly an embarrassment of riches for Mr Burghart to take advantage of as he makes his debut at the weekly showcase in the House of Commons.

10:55 AM GMT

Reeves failed to carry out impact assessment before farmers’ tax raid

Labour carried out no impact assessment before launching an inheritance tax raid on farmers, The Telegraph can reveal.

Campaigners have said the introduction of such sweeping changes without a full review amounted to “negligence”, as thousands descended on Westminster on Tuesday to protest the new measures.

It came as Labour faced fresh criticism for appearing to underestimate how many farmers would be affected by the raid – and how much money it would generate.

You can read the full story here. 

10:32 AM GMT

Tice: Labour facing farmergeddon

Richard Tice, the deputy leader of Reform UK, said the Government was “failing our farmers”.

He said ministers are now facing “farmergeddon” as a result of the Budget inheritance tax raid on farms.

Mr Tice tweeted: “Farmergeddon after months of Starmergeddon. This Labour Government are out of their depth and failing our farmers.”

10:20 AM GMT

Pictured: Badenoch chats with Clarkson after yesterday’s farmers’ rally

10:10 AM GMT

Coming up: Rayner to face Burghart at PMQs

Sir Keir Starmer is currently travelling back to the UK after attending a G20 summit in Rio de Janeiro, Brazil.

That means Prime Minister’s Questions today will be a battle of the deputies.

Angela Rayner will be standing in for Sir Keir.

Kemi Badenoch has not appointed a deputy leader and is expected to give a different member of her shadow cabinet the opportunity to step up each time Sir Keir is away.

Alex Burghart, the shadow chancellor of the Duchy of Lancaster, will represent the Tories today.

09:48 AM GMT

Pictured: Rachel Reeves arrives at the Treasury amid backlash over tractor tax

09:38 AM GMT

Philp criticises ‘heartless’ Labour over handling of tractor tax

Chris Philp said it was “heartless” and “callous” for the Government to urge farmers to get tax advice so they understand the impact of the inheritance tax changes.

The shadow home secretary told Sky News: “I think that is a really heartless and callous thing to say.

“These are people who are working really hard, not making very much money and just to hit them with a tax measure that will end their ability to farm and produce food for all of us and just say ‘go and get tax advice’ I think is a really just heartless, un-empathetic thing to say.”

09:10 AM GMT

Tories: Food prices will rise if farms close because of tractor tax

Labour’s “vindictive” tractor tax could cause food prices to spike, the shadow home secretary has warned.

Chris Philp said that the inheritance tax raid could cause farms to close and the impact would be felt in people’s pockets.

He told Sky News: “We depend on those farms for our food security and to keep food prices down.

“If farms start closing obviously it’s terrible for the farmers who have worked for generations on that land but it is also bad for the rest of us because food prices will go up and this is a really vindictive policy by the Labour Government. 
“It won’t raise very much money and it will affect the majority of farms, including quite small farms, so I am very worried about it and the Government, I think, should change their mind.”

08:45 AM GMT

Multi-generation family farms will be lost because of tractor tax, says Philp

Family farms going back multiple generations will be “lost” as a result of Labour’s inheritance tax raid, according to Chris Philp.

The shadow home secretary said the “majority of family farms” will be affected by the so-called tractor tax. The Government has insisted it will only be a small minority.

The senior Tory told Sky News: “The majority of family farms are going to be affected by this farm tax which Labour are introducing.

“It is going to mean farms that have been in families for generations are going to be lost. Very often these are farmers who aren’t making very much money. Farming is not a particularly profitable thing to do, these aren’t people who are super rich or anything like that, these are regular farmers working incredibly hard…”

08:23 AM GMT

Cabinet minister signals tractor tax will not be scrapped

The Science Secretary insisted the Government is listening to farmers but signalled the inheritance tax raid will not be ditched or watered down.

Peter Kyle told Sky News: “Of course we are listening. We are always listening.”

Asked if ministers would change their minds about the so-called tractor tax, Mr Kyle said: “We are making the difficult decisions to get our finances back in order.

“We have implemented this policy in a way which affects as few people as possible and when it does affect these people, the 500 or less people a year out of 22,000 farms we have in our country, we are making sure that it is done in a way that is as fair as possible and is understanding the needs of farming today.”

08:00 AM GMT

Minister denies patronising farmers after telling them to ‘find out how inheritance tax works’

A Treasury minister denied patronising farmers over the tractor tax after he urged them to “find out about how inheritance tax works”.

James Murray told the BBC’s Newsnight programme: “I can understand there is a real strength of feeling about the decision that we have taken and that people might be anxious if they are trying to work out if these changes might affect them and what I would really encourage everyone to do who is anxious about this is to find out about how inheritance tax works.”

Mr Murray was then told that was exactly what farmers would have been doing since the Budget and it was suggested to him that his comment was “rather patronising”.

He replied: “No, I think that inheritance tax is something that many people who have been accessing agricultural property relief since the last changes in 1992, they may not have looked into the detail of inheritance tax because they haven’t had to think about it for the last 30 years.”

Mr Murray then suggested that farmers could plan ahead to avoid the impact of the inheritance tax raid.

He said: “It is really important that people look at how it works, get the right financial advice, because there are a number of different nil rate bands, spousal transfers, gifting rules and so on.”

07:47 AM GMT

Rees-Mogg labels Labour a ‘government of vandals’ over tractor tax attack

Sir Jacob Rees-Mogg said the tractor tax represented a “serious attack on our way of life” as he accused the Government of vandalising the nation’s countryside.

The Tory former business secretary told GB News: “This is a really serious attack on our way of life, on the way of life in the countryside and I’m not just talking about Somerset today. I’m talking about the whole of the United Kingdom.”

He added: “There is land in this country that was bought by tenant farmers after the war, when this country recognised that it must never again be completely dependent on overseas imports.

“There are farmers who will have had land in their families, not just for generations, but for hundreds of years.

“This break with our history is being destroyed by a government that is a government of vandals, a government that has no concern for the prosperity and freedom of this nation.”

07:38 AM GMT

Take tractor tax protests to Labour-held market towns, Farage urges farmers

Nigel Farage said farmers should hold protests in Labour-held semi-rural and rural constituencies to force the Government to abandon its Budget raid on inheritance tax.

He said that protests in seats held by Labour, especially those won by narrow margins at the general election, could prompt a “serious revision” to the tractor tax.

“Labour now have somewhere between 70 and 100 seats they won at the election in rural or semi-rural constituencies,” the Reform UK leader told GB News.

“And I think what this movement now needs to do is not just to get together in London, but to be seen in market towns all over this country, especially ones that Labour won by very narrow margins at the general election.

“I always knew that the hunting ban was going to come in. I always knew that no one would listen. But this time, I think we can get a change. I think we can get a serious revision of that starting level.”