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 $10bn-plus takeover bid for one of America’s biggest pharmacy chains is set to trigger a fresh auction of Boots the Chemist after a string of aborted attempts to sell the British retail giant.

Sky News understands that Sycamore Partners, the private equity firm, is expected to seek separate ownership for Boots if it succeeds in taking Walgreens Boots Alliance (WBA), its current New York-listed parent, private.

The Wall Street Journal reported on Tuesday that Sycamore Partners was in talks to buy WBA, which has seen its market value plummet to less than $8bn in recent months.

Stefano Pessina, the Italian dealmaker who has led a string of major deals involving Boots over the last two decades, is expected to play a central role in any carve-out of the Nottingham-based retailer.

One source said that Mr Pessina, who holds roughly a 17% stake in WBA, may end up as the principal owner of Boots depending on how the deal with Sycamore was structured.

WBA has orchestrated, and terminated, at least two processes to explore a sale of Boots in the last few years, deciding that offers from parties including Apollo Global Management did not offer sufficient value.

Boots, which marks its 175th anniversary this year, employs about 52,000 people and trades from roughly 1900 stores.
It recently appointed a new boss after Seb James, its long-serving managing director, resigned for a new role in the healthcare industry.

Boots’ heritage dates back to John Boot opening a herbal remedies store in Nottingham in 1849.

It opened its 1000th UK store in 1933.

In 2012, Walgreens acquired a 45% stake in Alliance Boots, completing its buyout of the business two years later.

Spokespeople for Sycamore, Mr Pessina and Boots all declined to comment.