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 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.
Advertisement
‘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”.
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.”
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.
Follow Sky News on WhatsApp
Keep up with all the latest news from the UK and around the world by following Sky News
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.
The Church of England needs to “kneel in penitence” and “be changed”, the Archbishop of York Stephen Cottrell is expected to say in his Christmas Day sermon.
It comes at a challenging time for the Church which has faced criticism over how it handled a number of abuse scandals.
Mr Cottrell will next month effectively become the Church’s temporary leader in place of the outgoing Archbishop of Canterbury Justin Welby.
But Mr Cottrell has himself also faced calls to quit after revelations David Tudor, a priest at the centre of a sexual abuse case, was twice reappointed under him while he was serving as bishop of Chelmsford.
With Mr Welby not giving the 25 December sermon, the focus has moved to what Mr Cottrell will say at York Minster.
He is expected to say the Church must “kneel in penitence and adoration” this Christmas and “be changed”.
He will say about Jesus: “At the centre of the Christmas story is a vulnerable child; a vulnerable child that Herod’s furious wrath will try and destroy, for like every tyrant he cannot abide a rival.
“The Church of England – the Church of England I love and serve – needs to look at this vulnerable child, at this emptying out of power to demonstrate the power of love, for in this vulnerable child we see God.
“If you’re in love, show me. If you have love in your hearts, embody and demonstrate that love by what you do.”
‘Put the needs of others first’
The archbishop will add: “This is what we learn at the manger. Put the needs of others first – those who are cold and hungry and homeless this Christmas.
“Those who are victims of abuse and exploitation. Those who, like the little holy family, have to flee oppression and seek refuge in a foreign land.”
With regards to the Tudor case, Mr Cottrell has acknowledged things “could have been handled differently, and regrets that it wasn’t”.
But Tudor’s victims have branded Mr Cottrell’s response to the case “insulting and upsetting”. They have suggested it’s “inevitable” that he resigns or is forced out of his role.
Bishop of Newcastle Helen-Ann Hartley questioned how Mr Cottrell could have any credibility, and Bishop of Gloucester Rachel Treweek declined to publicly back him.
Meanwhile, the Bishop of Dover, Rose Hudson-Wilkin, is giving the sermon at Canterbury Cathedral in place of Mr Welby and will speak of the birth of Jesus as a triumph of “light and hope” over “fear and darkness”.
Around half of accident and emergency departments, polled by the Royal College of Emergency Medicine (RCEM), have said they are “full to bursting” this Christmas.
The vice-president of the RCEM, Dr Ian Higginson, told Sky News’ Gareth Barlow on Christmas Eve that the situation for the NHS in the UK is “pretty grim” at the moment.
The group, representing emergency doctors, put a call out to senior managers on Friday night. Dr Higginson said half responded and “all but two of them said that the emergency departments were absolutely full to bursting”.
“Normally just before Christmas, we’d expect a bit of a lull. So I’m afraid things are looking pretty difficult out there for our patients and for our staff,” he added.
The NHS has warned that hospitals are under severe pressure because of winter flu cases and a so-called “quad-demic”, combining respiratory infections with norovirus.
Commenting on the challenges facing the NHS, Dr Higginson said: “We simply don’t have enough beds in our hospitals for patients who are admitted as emergencies.
“We don’t have enough staff for those beds and we don’t have any headroom at all. So if something like flu hits as it has done, it makes a bad situation even worse.”
Please use Chrome browser for a more accessible video player
2:14
Hospitals are being flooded by winter flu cases
England ‘about 10,000 beds short’
Dr Higginson added he believes the answer is “strategic solutions and strategic investment”.
He said: “In England alone, we reckon we’re about 10,000 beds short in our hospitals to deal with the predictable, urgent and emergency care… the equivalent of approximately two wards in every hospital.”
Recently the RCEM also attacked the “nonsensical” guidance on how to treat patients in corridors – describing it as “out of touch” and “normalising the dangerous”.
Dr Higginson said recent pressures mean “we’ve got patients all the way through our corridors because we can’t admit them to hospital when they need to”.
He added: “It may be that their ambulance is outside in car parks because those patients can’t get into our emergency departments.”
And he argued that social care is “in a really difficult place at the moment” – needing investment to prevent older patients from remaining in hospital longer than they need to.
“When they’re ready to leave hospital, they get stuck in hospital, and that contributes to that shortage of beds even more,” he said.
Since its election victory in July, the Labour government has acknowledged the NHS needs investment with the Prime Minister Sir Keir Starmer saying it is “broken”.
In October, Chancellor Rachel Reeves announced a £22.6bn increase in day-to-day spending on the NHS in her budget.
Commenting on rising pressures within the NHS, Health and Social Care Secretary Wes Streeting said: “We inherited an NHS that is broken but not beaten, and staff are already working hard to tackle an increase in admissions this winter.”
“For too long, an annual winter crisis has become the norm. We will deliver long-term reforms through our 10-year health plan that will create a health service that will be there for all of us all year round,” he added.
The UK’s oldest man has celebrated his 110th birthday with a special performance from opera singer Alfie Boe at his care home in Derbyshire.
A party was laid on for Donald Rose – who’s now ranked as a ‘supercentenarian’.
Mr Boe joined the bash in Ilkeston by video call and sang happy birthday, adding it was “a pleasure” to perform for him.
Mr Rose, who served in the Second World War with the Queen’s Royal Regiment, said: “Today is the best day I’ve ever had.”
Canal Vue Care Home announced his birthday with a post on Facebook: “Today we’re celebrating a remarkable milestone. Our beloved Donald is turning 110 years young!”
Activity coordinator Naomi Allsop also shared a touching tribute on Facebook: “Happy 110th birthday to my amazing best friend, the UK’s oldest man and a remarkable WWII and D-Day veteran!
“We’ve shared so many incredible experiences together, and there’s still so much more to come!”
“Donald is a lovely character – and a true national treasure,” said the Mayor of Erewash, Councillor Kate Fennelly, who also paid him a visit.
Mr Rose, who was born in 1914 in Westcott, Surrey, also received a card from The King and Queen, which he proudly showed off.
Other performances at the care home included Kate from D-Day Darlings, an all-female singing group who reached the finals of ITV’s Britain’s Got Talent.
She sang Dame Vera Lynn’s The White Cliffs of Dover and We’ll Meet Again.
On 5 December, the war hero was among 200 veterans and their guests to attend a Christmas reception at St James’s Palace, hosted by the Duke of Gloucester.
The event was organised by The Not Forgotten veterans’ charity, which aims to combat isolation and loneliness in the armed forces and those who have served through social activities and holidays.
Mr Rose served as a sniper and Desert Rat in North Africa in the Second World War, according to The Gerontology Research Group, and was part of the liberation of Italy and France.
He earned a number of medals during his service including the Legion D’Honneur – France’s highest honour.
After working various jobs as a labourer, lorry driver and bin man he moved to Derbyshire in 2000 following the death of his wife, and at the age of 106 moved into his care home in Ilkeston.