Sir Keir Starmer vows to defend budget decisions ‘all day long’ as farmers slam ‘disrespectful’ PM
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.
‘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
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
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.
UK
Home secretary admits illegal immigration numbers still ‘too high’ under Labour – but says Farage can ‘sod off’
The home secretary has admitted the UK’s illegal immigrant numbers are “too high” – but said Nigel Farage can “sod off” after he claimed she sounded like a Reform supporter.
Shabana Mahmood, speaking just after announcing a major policy change on migration, said she was “horrified” by the 27% increase of irregular arrivals in the year to June.
Politics latest: Labour MPs attack asylum plans
Speaking to Sky News’ political editor Beth Rigby, the home secretary said: “I acknowledge the numbers are too high, and they’ve gone up, and I want to bring them down.
“I’m impatient to bring those numbers down.”
She refused to “set arbitrary numbers” on how much she wanted to bring illegal migration down to.
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Beth Rigby: The two big problems with Labour’s asylum plan
Earlier on Monday, Ms Mahmood announced a new direction in Labour’s plan to crack down on asylum seekers.
The “restoring order and control” plan includes:
• The removal of more families with children – either voluntarily through cash incentives up to £3,000, or by force;
• Quadrupling the time successful asylum seekers must wait to claim permanent residency in the UK, from five years to 20;
• Removing the legal obligation to provide financial support to asylum seekers, so those with the right to work but choose not to will receive no support;
• Setting up a new appeals body to significantly speed up the time it takes to decide whether to refuse an asylum application;
• Reforming how the European Convention on Human Rights (ECHR) is interpreted in immigration cases;
• Banning visas for countries refusing to accept deportees;
• And the establishment of new safe and legal refugee routes.
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Home secretary announces details on asylum reform
Reform UK leader Nigel Farage said the plan was much like something his party would put forward, and said Ms Mahmood sounded like a Reform supporter.
The home secretary responded with her usual frankness, telling Rigby: “Nigel Farage can sod off. I’m not interested in anything he’s got to say.
“He’s making mischief. So I’m not going to let him live forever in my head.”
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Nigel Farage said the home secretary was sounding like a Reform supporter
She earlier announced refugee status would be temporary, only lasting two and a half years before a review, and they would have to be in the UK for 20 years before getting permanent settled status, instead of the current five years.
Ms Mahmood said Reform wanted to “rip up” indefinite leave to remain altogether, which she called “immoral” and “deeply shameful”.
The home secretary, who is a practising Muslim, was born in Birmingham to her Pakistani parents.
Earlier, in the House of Commons, she said she sees the division that migration and the asylum system are creating across the country. She told MPs she regularly endures racial slurs.
BBC chair Samir Shah has said there is “no basis for a defamation case and we are determined to fight this” – after Donald Trump said he would sue the corporation for between $1bn and $5bn.
It comes after the US president confirmed on Saturday he would be taking legal action against the broadcaster over the editing of his speech on Panorama – despite an apology from the BBC.
Samir Shah said the BBC’s position ‘has not changed’. Pic: Reuters
In an email to staff, Mr Shah said: “There is a lot being written, said and speculated upon about the possibility of legal action, including potential costs or settlements.
“In all this we are, of course, acutely aware of the privilege of our funding and the need to protect our licence fee payers, the British public.
“I want to be very clear with you – our position has not changed. There is no basis for a defamation case and we are determined to fight this.”
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On Saturday, President Trump told reporters legal action would come in the following days.
“We’ll sue them. We’ll sue them for anywhere between a billion (£792m) and five billion dollars (£3.79bn), probably sometime next week,” he said.
“We have to do it, they’ve even admitted that they cheated. Not that they couldn’t have not done that. They cheated. They changed the words coming out of my mouth.”
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The BBC on Thursday said the edit of Mr Trump’s speech on 6 January 2021 had given the “mistaken impression that President Trump had made a direct call for violent action”.
The broadcaster apologised and said the splicing of the speech was an “error of judgment” but refused to pay financial compensation after the US leader’s lawyers threatened to sue for one billion dollars in damages unless a retraction and apology were published.
Deborah Turness. Pic: Reuters
Tim Davie. Pic: PA
The Panorama scandal prompted the resignations of two of the BBC’s most senior executives – director-general Tim Davie and news chief Deborah Turness.
The broadcaster has said it will not air the Panorama episode Trump: A Second Chance? again, and published a retraction on the show’s webpage on Thursday.
A British man who hacked the X accounts of celebrities in a bid to con people out of Bitcoin, has been ordered to repay £4.1m-worth of the cryptocurrency, prosecutors say.
Joseph James O’Connor, 26, was jailed in the United States for five years in 2023 after he pleaded guilty to charges including computer intrusion, wire fraud and extortion.
He was arrested in Spain in 2021 and extradited after the country’s high court ruled the US was best placed to prosecute because the evidence and victims were there.
The Crown Prosecution Service (CPS) said on Monday it had obtained a civil recovery order to seize 42 Bitcoin and other crypto assets linked to the scam, in which O’Connor used hijacked accounts to solicit digital currency and threaten celebrities.
The July 2020 hack compromised accounts of high-profile figures including former US presidents Barack Obama and Joe Biden, and Amazon founder Jeff Bezos.
O’Connor and his co-conspirators stole more than $794,000 (£629,000) of cryptocurrency after using the hacked accounts to ask people to send $1,000 in Bitcoin to receive double back.
Prosecutor Adrian Foster said the civil recovery order showed that “even when someone is not convicted in the UK, we are still able to ensure they do not benefit from their criminality”.
The order, which valued O’Connor’s assets at around £4.1m, was made last week, following a freeze placed on the hacker’s property, which prosecutors secured during extradition proceedings.
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A court-appointed trustee will liquidate his assets, the CPS said.
The attack also compromised the X (then Twitter) accounts of other high-profile figures including Tesla chief executive Elon Musk, investor Warren Buffett, and media personality and businesswoman Kim Kardashian.
The hack prompted the social media platform to temporarily freeze some accounts.
X said 130 accounts were targeted, with 45 used to send tweets.
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