Labour’s rural problem has reared its head once more.

This time, the government is facing down fierce opposition over changes to inheritance tax. Unless a breakthrough is achieved, Labour’s rural problem risks becoming everyone’s problem.

Protesters showed no sign of backing down on Tuesday.

Farmers from across rural Britain got up in the middle of the night to begin their journey to London. By morning, a mile-long row of tractors had brought Westminster to a standstill.

The atmosphere was charged. “This is a war we will win, and the government will do a U-turn,” one protest organiser roared.

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There was a lot of anger, broadly pointing in the same direction, but the protest was also a menagerie, with fireworks of rage going off in all directions.

Brexiteers clashed with some pro-EU protesters who stationed themselves in front of the tractors. Others expressed their anger at the National Farmers’ Union (NFU).

Some hardline farmers have already warned that they could go further, by blocking ports or withholding food supplies. In Wales, farmers have already taken action.

Last month they blocked the country’s biggest port town, Holyhead on the island of Anglesey, with 40 tractors.

Preparing for escalation

Ministers have admitted they are drawing up contingency plans in case farmers escalate the situation by going on strike.

Louise Haigh, the former transport secretary, told Sky News last month: “Of course, the Department for Environment, Food and Rural Affairs will be setting out contingency plans and ensuring that food security is treated as the priority it deserves to be.”

While such a prospect is still some way off, farming groups are warning that it is a possibility.

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However, they are worried that such a move could drain public support.

Tom Bradshaw, president of the NFU, said he couldn’t rule out food shortages. Mr Bradshaw said: “I think they (the public) should be surprised, but I can’t rule it out.”

On a charged and emotional morning, during which he gave evidence to MPs on the Environment, Food and Rural Affairs select committee, Mr Bradshaw told Sky News: “If we’ve got to, we will carry on protesting through to the spring.”

“The public has done nothing wrong. We absolutely have to have their support. I really don’t want them to get caught in the eye of this storm. Making sure we don’t cut off their supplies, and we keep the public on side is essential to making sure the government has to listen,” he said.

Mr Bradshaw said: “The sense of anger is one I’ve never known… it’s now down to the government. The ball is in their court. They could stop this tomorrow.”

Two of Britain’s biggest high street banks have quit a body dedicated to enhancing industry lending practices, sparking a furious row and casting doubt over its future.

Sky News has learnt that HSBC and Lloyds Banking Group have terminated their membership of the Lending Standards Board (LSB).

Their resignations – alongside that of Santander UK in April – mean that three of the country’s big five lenders have quit the organisation this year.

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On Wednesday, Barclays was also said to be considering its future involvement.

The exodus has forced the body to slash its headcount, with roughly a third of those employed in its compliance department made redundant, according to a source close to the LSB.

The organisation denied suggestions that the figure was as high as 75%.

HSBC and Lloyds are expected to formally remain as members until their resignations take effect sometime in the new year.

The LSB is a self-regulatory body whose origins began in the Banking Code Standards Board designed in 1992 by the British Bankers’ Association and other trade associations.

Its board members include Paul Johnson, arguably Britain’s most respected economist.

The financial crisis which erupted in 2007 exposed a litany of failings in the industry’s conduct, paving the way for the creation of the Banking Standards Board (BSB).

Last year, the BSB closed after major lenders declined to continue funding it.

In a statement issued to Sky News, an LSB spokesperson said: “We disagree profoundly with HSBC and Lloyds Banking Group’s decision to withdraw from the LSB’s business Standards.

“As a result of this withdrawal, many of these banks’ SME customers will not be protected by the oversight of either the LSB or FCA.

“This will put these SMEs at a greater risk of harm.”

Banking industry sources said they had decided that their LSB membership was unnecessary because of the duplication of regulatory standards to which the industry is now required to adhere.

These, they said, included the consumer duty overseen by the Financial Conduct Authority and new rules governing the reimbursement of authorised push payment fraud.

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A Lloyds Banking Group spokesperson said: “We remain dedicated to delivering good outcomes and upholding exemplary standards for our customers.

“We have valued the LSB’s role in enhancing standards but there is now significant duplication with other regulation that has been introduced in recent years.”

HSBC declined to comment, while Barclays has been contacted for comment.

A police unit launched to crack down on the surge in shoplifting has arrested 93 members of 28 organised crime gangs behind more than £4m worth of thefts.

The national team has also identified 228 previously unknown offenders and 70 vehicles involved in retail crime in the seven months since it was launched, according to the National Police Chiefs’ Council (NPCC).

Police say it’s the first time officers have mapped the gangs targeting shops and supermarkets around the country to see where they’re operating.

Of the 93 people arrested, 32 have appeared in court, while five have been deported.

Three shoplifters believed to be behind around 120 crimes across the country worth at least £200,000 were jailed at Guildford Crown Court last month.

Laura Miron, 27, Ovoliv Firan, 38, and Nicolae Boia, 30, all from west London, stole champagne in one spree worth more than £4,500 as they targeted large supermarkets to steal razors, alcohol and other goods.

Surrey Police said they were key figures in a much larger organised crime gang, responsible for around 800 offences across the country, which has ceased to operate.

The Conservative police and crime commissioner for Sussex, Katy Bourne, said Operation Pegasus, which gathers intelligence on retail crime, has already had a “massive impact”, with the gangs involved also linked to exploitation, human trafficking and slavery.

“The message to the criminals is we know who you are now and we’re coming after you,” she said.

Paul Gerrard, director of campaigns and public affairs for the Co-op, said the retailer has seen the difference the crackdown is making.

“Co-op turned a spotlight on the involvement of organised criminality driving the increase in retail crime and our commitment to local stores and investing to make our communities safer places which can thrive and prosper remains a priority,” he said.

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Official figures released in October showed shoplifting hit a new 20-year high, with a total of 469,788 offences logged by forces in the year to June 2024, up 29% on the 365,173 recorded in the previous 12 months.

Last month, peers wrote to policing minister Dame Diana Johnson saying shop theft was “seriously underreported and not being tackled properly”, risking undermining confidence in the police and the criminal justice system.

Dame Diana praised the “promising initial results” of the police operation but said “we know we need to go much further” to “turn the tide on current unacceptable record levels of shop theft”.

“Retail crime blights our communities and high streets,” she said. “We are determined to crack down on this crime through stronger laws and more neighbourhood policing on our streets.”

Meanwhile, West Mercia Police chief constable Amanda Blakeman warned people to be wary of buying cheap Christmas gifts from unofficial sources.

“We’re asking the community to think about when they buy something, especially at this time of year, if it isn’t from the retailer and it seems incredibly cheap, it probably has got a background that you should be suspicious of and not purchase it,” she said.