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Sir Keir Starmer has said he will defend the decisions made in the budget “all day long” amid anger from farmers over inheritance tax changes.

Chancellor Rachel Reeves announced last month in her key speech that from April 2026, farms worth more than £1m will face an inheritance tax rate of 20%, rather than the standard 40% applied to other land and property.

The announcement has sparked anger among farmers who argue this will mean higher food prices, lower food production and having to sell off land to pay for the tax.

Sir Keir Starmer

Sir Keir defended the budget as he gave his first speech as prime minister at the Welsh Labour conference in Llandudno, North Wales, where farmers have been holding a tractor protest outside.

Sir Keir admitted: “We’ve taken some extremely tough decisions on tax.”

He said: “I will defend facing up to the harsh light of fiscal reality. I will defend the tough decisions that were necessary to stabilise our economy.

“And I will defend protecting the payslips of working people, fixing the foundations of our economy, and investing in the future of Britain and the future of Wales. Finally, turning the page on austerity once and for all.”

He also said the budget allocation for Wales was a “record figure” – some £21bn for next year – an extra £1.7bn through the Barnett Formula, as he hailed a “path of change” with Labour governments in Wales and Westminster.

And he confirmed a £160m investment zone in Wrexham and Flintshire will be going live in 2025.

‘PM should have addressed the protesters’

Among the hundreds of farmers demonstrating was Gareth Wyn Jones, who told Sky News it was “disrespectful” that the prime minister did not mention farmers in his speech.

He said “so many people have come here to air their frustrations. He (Starmer) had an opportunity to address the crowd. Even if he was booed he should have been man enough to come out and talk to the people”.

He said farmers planned to deliver Sir Keir a letter which begins with “‘don’t bite the hand that feeds you”.

Farmers' tractor protest outside the Welsh Labour conference in Llandudno, North Wales
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Farmers’ tractor protest outside the Welsh Labour conference in Llandudno, North Wales

Mr Wyn Jones told Sky News the government was “destroying” an industry that was already struggling.

“They’re destroying an industry that’s already on its knees and struggling, absolutely struggling, mentally, emotionally and physically. We need government support not more hindrance so we can produce food to feed the nation.”

He said inheritance tax changes will result in farmers increasing the price of food: “The poorer people in society aren’t going to be able to afford good, healthy, nutritious British food, so we have to push this to government for them to understand that enough is enough, the farmers can’t take any more of what they’re throwing at us.”

Mr Wyn Jones disputed the government’s estimation that only 500 farming estates in the UK will be affected by the inheritance tax changes.

“Look, a lot of farmers in this country are in their 70s and 80s, they haven’t handed their farms down because that’s the way it’s always been, they’ve always known there was never going to be inheritance tax.”

On Friday, Sir Keir addressed farmers’ concerns, saying: “I know some farmers are anxious about the inheritance tax rules that we brought in two weeks ago.

“What I would say about that is, once you add the £1m for the farmland to the £1m that is exempt for your spouse, for most couples with a farm wanting to hand on to their children, it’s £3m before anybody pays a penny in inheritance tax.”

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Welsh farmer Gareth Wyn Jones
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Welsh farmer Gareth Wyn Jones

Ministers said the move will not affect small farms and is aimed at targeting wealthy landowners who buy up farmland to avoid paying inheritance tax.

But analysis this week said a typical family farm would have to put 159% of annual profits into paying the new inheritance tax every year for a decade and could have to sell 20% of their land.

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The Country and Land Business Association (CLA), which represents owners of rural land, property and businesses in England and Wales, found a typical 200-acre farm owned by one person with an expected profit of £27,300 would face a £435,000 inheritance tax bill.

The plan says families can spread the inheritance tax payments over 10 years, but the CLA found this would require an average farm to allocate 159% of its profits each year for a decade.

To pay that, successors could be forced to sell 20% of their land, the analysis found.

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Zarah Sultana drops legal threat to reconcile with Jeremy Corbyn after row

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Zarah Sultana drops legal threat to reconcile with Jeremy Corbyn after row

Zarah Sultana has said she will not pursue legal action in a bid to repair the row that has engulfed her new political party with Jeremy Corbyn.

Ms Sultana, who co-leads “Your Party” with the former Labour leader, initially said she had hired defamation lawyers following a public spat in which she was accused of launching her own “unauthorised” membership drive.

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The former Labour MP, who now represents Coventry South as an independent, admitted she had launched the membership portal without her co-leader’s sign-off, but claimed she did so because she had been “sidelined” by a “sexist boys club”.

Her actions led to Mr Corbyn issuing his own statement, in which he urged members of the party – which has been given the interim name of Your Party – to ignore an “unauthorised” email urging them to become paid members and that legal advice was being taken.

In a fresh statement issued on Sunday evening, Ms Sultana acknowledged her supporters had been left feeling “demoralised” by the saga.

“For the sake of the party, and as an act of good faith, I will not be pursuing legal proceedings despite the baseless and unsubstantiated allegations against me,” she said.

“I know many people are feeling demoralised – I share that feeling. We find ourselves in a regrettable situation, but my motivation has always been to ensure the collective strength of our movement, put members first and build the genuinely democratic conference and socialist party we so urgently need.”

She added: “I am determined to reconcile and move forward. I am engaged in ongoing discussions with Jeremy, for whom, like all socialists of my generation, I have nothing but respect.”

Your Party got off to a shaky start when it was announced by Ms Sultana in early July, in a move that appeared to blindside Mr Corbyn.

The pair confirmed the launch a few weeks later, sharing a link to a website called Yourparty.co.uk.

It was later clarified that that was an interim name and that party members would decide a formal name at its inaugural conference in the autumn.

It is understood there are still expectations the conference will go ahead, despite the public fallout last week.

Read more:
Inside Jeremy Corbyn’s new party and the battle for leadership
What is happening at Your Party?

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What is happening at Your Party?

Despite her current attempts to repair the row, Your Party reported itself to the Information Commissioner’s Office last week after the “false membership” system was “unilaterally launched” by Ms Sultana – which it said was its duty under the law.

Questions remain over the handling of the data, which, as outlined in Your Party’s privacy notice, is owned by the Peace and Justice Project, spearheaded by the former Labour leader and independent activist Pamela Fitzpatrick, who are listed as the directors on Companies House.

The Coventry MP said in a statement after the row broke out that “at no point was members’ data misused or put at risk” and that the portal was “properly launched in accordance with the party’s roadmap”.

The ICO watchdog, which upholds information rights in the public interest, can issue fines up to £17.5m or 4% of global turnover, or pass fraud and negligence cases to police.

A spokesperson for the ICO told Sky News on Friday: “We can confirm we have received a report and are assessing the information provided.”

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First Chinese CNH stablecoin debuts as global race heats up

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First Chinese CNH stablecoin debuts as global race heats up

First Chinese CNH stablecoin debuts as global race heats up

Governments around the world are exploring and launching stablecoins to remain competitive against dollar-pegged digital fiat tokens.

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Sir Ed Davey brands Elon Musk a criminal and calls for his arrest for ‘allowing online harm to children’

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Sir Ed Davey brands Elon Musk a criminal and calls for his arrest for 'allowing online harm to children'

Sir Ed Davey has branded Elon Musk a criminal and called for him to be prosecuted for “allowing online harm to children” on his social media platform X.

The Lib Dem leader told Sky News’ Sunday Morning with Trevor Phillips the billionaire owner of X, formerly Twitter, is “inciting violence” and his social media platform is actively failing to protect children.

Sir Ed, speaking from the Lib Dem conference in Bournemouth, said Mr Musk could be prosecuted under the Online Safety Act, under which social media companies have a legal duty to protect children from harmful content and their directors are liable for criminal prosecution for breaching it.

Elon Musk. Pic: Reuters
Image:
Elon Musk. Pic: Reuters

Asked if he is calling Mr Musk a criminal, Sir Ed did not miss a beat as he said: “Yes.

“Not just because of the awful things he’s done in inciting violence, and, for example, he says a civil war in our country is inevitable, that our democratically elected government should be overthrown.

“They were bad enough. But on his platform, they’re examples of adverse, pushing people on self-harm, on grooming, even selling videos showing paedophile acts, of child sex abuse acts and I think he should be held to account for them, him personally and his business.

“Ofcom now has the powers under the Online Safety Act.”

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He said if Mr Musk comes to the UK, he should be arrested.

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Sir Ed Davey enters conference with marching band

Mr Musk was accused of inciting violence during a march organised by Tommy Robinson in London last week.

He told the protest via video link: “This is a message to the reasonable centre, the people who ordinarily wouldn’t get involved in politics, who just want to live their lives. They don’t want that, they’re quiet, they just go about their business.

“My message is to them: if this continues, that violence is going to come to you, you will have no choice. You’re in a fundamental situation here.

“Whether you choose violence or not, violence is coming to you. You either fight back or you die, that’s the truth, I think.”

Sir Ed Davey said Elon Musk should be arrested
Image:
Sir Ed Davey said Elon Musk should be arrested

Sir Ed said it is “shocking” that Mr Musk removed some of X’s child safety teams when he took over Twitter in 2022 and accused him of just being “interested in his bank account”.

“I’m interested in the safety of our children, and it is quite wrong that his business puts on these adverts,” said the Lib Dem leader.

“It’s disgusting and I hope everybody will agree with me and the Liberal Democrats that we should take really strong action against him.”

After Mr Musk acquired Twitter, many of its child safety staff were laid off or resigned, and the platform’s trust and safety council was disbanded.

Child protection experts have accused Mr Musk of leading a “race to the bottom on safety”.

Elon Musk with Donald Trump in the Oval Office. Pic: AP
Image:
Elon Musk with Donald Trump in the Oval Office. Pic: AP

Ofcom, the UK’s independent media regulator, which has the power to prosecute directors of social media platforms under the Online Safety Act, has launched an investigation into X’s handling of child sexual abuse content.

This is not the first time Sir Ed has hit out at the world’s richest man, as he called for the US ambassador to be summoned in February “to ask why an incoming US official is suggesting the UK government should be overthrown”.

Mr Musk reacted by calling Sir Ed a “snivelling cretin”.

Sir Ed is expected to reiterate his call for Mr Musk’s arrest at his conference speech on Tuesday.

Pic: Reuters
Image:
Pic: Reuters

He will accuse Mr Musk of being motivated by “his own ego, power and wealth, rather than the rights and freedoms of the British people”.

The Lib Dems will also table a parliamentary motion summoning Mr Musk to the House of Commons “to be reprimanded for his actions”.

Sky News has approached X and Elon Musk for comment, but as of publication has received no response.

X maintains it has “zero tolerance for child sexual abuse material” and claims tackling those who exploit children is a “top priority”.

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