Angela Rayner criticises ‘scaremongering’ over inheritance tax changes for farmers
Angela Rayner has criticised “scaremongering” over Labour’s reforms to inheritance tax on farms.
The deputy prime minister had to defend the government’s changes to the levy in a bruising House of Commons session, as she stood in for Sir Keir Starmer while the prime minister was away at a G20 summit.
It came a day after more than 10,000 farmers gathered in Westminster to protest against the announcement in last month’s budget.
Politics latest: Rayner faces hostile crowd
The government will reduce inheritance tax relief applied to farms from 6 April 2026. The full 100% relief will only apply to the first £1m of property. Above this amount, landowners will pay inheritance tax at a reduced rate of 20%, rather than the standard 40%.
Farmers will still benefit from reductions, with Labour saying that a “typical” couple handing their estate to their children can gift up to £3m tax-free, and then pay the 20% tax. They will also have 10 years to pay the charge, interest-free.
However, many in agriculture have criticised the decision, and political parties from across the spectrum questioned Ms Rayner on it.
Daisy Cooper, the Liberal Democrat deputy leader and MP for St Albans in Hertfordshire, said farmers felt “betrayed” by the Conservative government and “lied to by Labour”.
Ms Rayner said she was “sorry” to hear that farmers were “distressed by what I would say is scaremongering around what the Labour Party is doing”.
Please use Chrome browser for a more accessible video player
Why should farmers be taxed more?
Alex Burghart, the shadow chancellor for the Duchy of Lancaster, was standing in for Kemi Badenoch – as it is convention for the leader of the Opposition to stand aside from Prime Minister’s Questions if the prime minister is away.
He asked Ms Rayner about a “typical, mid-sized, 360-acre” farm in Yorkshire – saying a family had spoken to their accountant and been told they could be liable to pay £500,000 in inheritance tax – equivalent to 12 years of profit.
The Tory MP added that the NFU is set to publish a report showing 75% of all commercial farms will fall above the threshold of paying inheritance tax.
Read more on farming:
Thousands protest at Downing Street
Jeremy Clarkson says govt should ‘back down’
Rowdy PMQs had ‘teacher is away vibes’
From the outset, this session of PMQs had a distinct “the teacher is away” vibe.
It was rowdy, shouty and prickly.
Labour MPs chuckled as their opposite numbers loudly cheered Alex Burghart – the relatively unknown shadow minister standing in for Kemi Badenoch today.
Angela Rayner quickly reminded colleagues he was the “minister for growth” during Liz Truss’s disastrous spell in Downing Street, sparking whooping from the government benches.
Burghart responded by referencing the views of “city economists… real economists” – a stinging reference to a story around the chancellor changing her LinkedIn profile to remove an apparently erroneous reference to being an economist at Halifax Bank of Scotland before entering politics.
With his microphone frequently cracking and topping out, the shadow Cabinet Office minister zeroed in loudly on inflation and changes to inheritance tax for farmers.
Other Tory backbenchers and the Lib Dem deputy followed suit, seizing on the farming protests that engulfed Westminster yesterday.
It led to what may be the main news line from this session – as Angela Rayner accused critics of “scaremongering” over the impact of the agriculture changes.
There were reprimands from the Speaker as well, with one Labour backbencher told off and the Tory MP Danny Kruger admonished.
He bit back though, saying to the Speaker “are you talking to me? I haven’t opened my mouth” and gestured to colleagues behind to shift the blame.
Sir Lindsay Hoyle later apologised to Mr Kruger – saying his colleague James Wild had put his hand up to being the naughty Tory.
The Speaker warned the pair they should maybe not sit next to each other again.
An appropriately classroom-like exchange in a session where calm maturity was not always at the front of many minds.
Ms Rayner says she “stands by the figures” the government had previously laid out.
She said: “The vast majority of estate owners will see no change and pay no tax on land valued at £1m.
“Couples can pass on £3m tax-free, and those above the thresholds will pay only half the normal rate, and can pay over ten years interest-free.”
👉 Listen to Sky News Daily on your podcast app 👈
Reform’s Lee Anderson also criticised the policy, and Conservative Saqib Bhatti asked Ms Rayner why Labour has “declared war on British farmers”.
Ms Rayner said the government “hasn’t declared war on farmers” – before reiterating her response on thresholds.
She also said Labour needed to raise money to account for the “£22bn black hole from the Conservatives”.
Sir Ed Davey has written to King Charles to explain why he believes he has to refuse his invite to a state banquet for Donald Trump.
The Lib Dem leader said on Wednesday he will be boycotting the dinner next month during the US president’s second state visit to the UK because of the situation in Gaza.
He told Sky News on Thursday: “I’ve written to him [the King] personally explaining my thinking.
“And it’s with deep regret that I’ve had to take the decision, but I feel with what is going on in Gaza, it’s the best way I can get my voice heard.”
Politics latest: Asylum hotel injunction appeal decision coming soon
Sir Ed said the “sad truth” is Mr Trump is the “one man” who has the power to stop the “horrible famine in Gaza, could get the hostages released, could bring an end to this horrendous humanitarian crisis”.
He said the US president could do that by phoning up Israeli Prime Minister Benjamin Netanyahu and telling him to stop.
The Lib Dem leader said Mr Trump could also call up the Qatari government and other Gulf states to get them to put pressure on Hamas to release the remaining 50 Israeli hostages (20 living, 30 dead) they took on 7 October 2023.
The King and Donald Trump during his first state visit in 2019. Pic: Reuters
He emphasised that he has “huge respect” for the King and it was a very difficult decision he “really wrestled with” and involved him talking to his wife and praying about it.
Sir Ed denied it was political posturing and instead is one of the only ways he could get Mr Trump to listen.
“I didn’t want him to come to the UK without being reminded, as best I can, that he has that moral responsibility, frankly,” he added.
“And from what I’m picking up from many people, there are people across the political spectrum who agree with me and the Democrats that it is Donald Trump, it is the United States who has this power over Netanyahu, over Hamas, albeit indirectly, to stop this horrendous situation.”
Publicly refusing the King’s invite is “the best way I can get my voice heard,” Sir Ed said.
Read more:
British journalists demand action from PM over war in Gaza
Has Trump ended seven wars as he claims?
King Charles will host a state dinner for Donald Trump. Pic: PA
Tony Blair at White House Gaza meeting
While Sir Ed is choosing to snub Mr Trump to get his voice heard, former Labour prime minister Sir Tony Blair has been asked by the US president for help on Gaza.
Sir Tony joined a White House meeting on Wednesday, chaired by Mr Trump, to discuss the war in Gaza and post-war plans for the Palestinian territory, a senior White House official confirmed.
They were joined by Mr Trump’s former Middle East envoy and son-in-law, Jared Kushner, to also discuss the hostage crisis and plans to escalate food aid deliveries.
The official described it as “simply a policy meeting”.
In July, the Financial Times reported the Tony Blair Institute had participated in a project to develop a post-war Gaza plan, with the think tank having “had many calls with different groups on post-war reconstruction of Gaza but none included the idea of forcible relocation of people from Gaza”.
Sir Ed called on Sir Tony to be quizzed in parliament about his discussions with the Trump administration.
“If he has special insight into Trump’s intentions, it’s only right that parliament and the government are made privy to this,” he said.
“We must leverage all the information and resources at our disposal to make Trump do the right thing.”
The change is part of the Commodity Futures Trading Commission’s “crypto sprint,” an initiative to overhaul regulations in response to proposals from the Trump administration.
The US government announced on Tuesday that it is publishing economic data onchain to boost transparency for government spending.
-
Sports3 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports1 year agoStory injured on diving stop, exits Red Sox game
-
Sports2 years agoGame 1 of WS least-watched in recorded history
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports4 years ago
Team Europe easily wins 4th straight Laver Cup
-
Sports2 years agoButton battles heat exhaustion in NASCAR debut
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment11 months agoHere are the best electric bikes you can buy at every price level in October 2024