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.
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‘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”.
Image: 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.”
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.
A manhunt for a second and third prisoner who were released in error has put further pressure on Justice Secretary David Lammy.
Last month Hadush Gerberslasie Kebatu, who was serving a 12-month prison sentence for sexual assault, was released in error when he should have been deported.
The Ethiopian national, who came to the UK on a small boat in the summer, spent roughly 48 hours at large before being apprehended in north London and deported.
But it emerged on Wednesday that within days of Kebatu’s mistaken release from HMP Chelmsford, HMP Wandsworth also mistakenly released prisoner Brahim Kaddour-Cherif.
The Metropolitan Police confirmed to Sky News: “Shortly after 1pm on Tuesday 4 November, the Met was informed by the Prison Service that a prisoner had been released in error from HMP Wandsworth on Wednesday 29 October.
“The prisoner is a 24-year-old Algerian man.
“Officers are carrying out urgent enquiries in an effort to locate him and return him to custody.”
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The same day Surrey Police put out a public appeal to locate fraudster William Smith, 35, who was also released in error from HMP Wandsworth on 3 November. He had been sentenced to 45 months in prison that day.
Mr Lammy, who was recently appointed justice secretary, is under renewed political pressure.
Image: Hadush Kebatu, jailed for two sexual assaults in Epping. Pic: Essex Police / PA
How many prisoners are released in error?
According to government statistics published in July, 262 prisoners were released in error in the 12 months to March 2025 – a 128% increase from 115 the previous year.
The report states: “Of the 262 releases in error, 233 of these releases in error occurred from prison establishments, while 29 were released in error at the courts.
“Releases in error from establishments could also be a result of errors by the court.”
This is out of a total prison population across England and Wales of roughly 86,000.
Sky News has contacted the HM Prison & Probation Service to know how many of the 262 prisoners have since been found and returned to custody.
In September 2024, Sky News reported how dozens of people released from jail under the government’s emergency prison scheme were freed by mistake.
The Labour government said it was forced to release hundreds of inmates early because prisons were at capacity.
Image: William Fernandez. Pic: PA
Kebatu was due to be deported when he was mistakenly released from HMP Chelmsford.
Previous high-profile manhunts
William Fernandez, who was awaiting trial for sexual assault, was released from HMP Wormwood by error in March 2021. He then went on to rape a 16-year-old girl and sexually assault a young woman.
Image: Joseph McCann. Pic: Police handout
In December 2019, the prisons and probation service “apologised unreservedly” after serial rapist Joseph McCann was freed to commit a series of sex attacks on women and children.
A man who arrived on a small boat has been sent back to France for the second time in less than two months.
The Iranian man came to the UK on a small boat on 6 August and was initially sent back to France on 19 September, before returning to the UK on a small boat on 18 October.
He has been flown back again as part of the latest tranche of 19 returnees under the “one in, one out” agreement with France.
The Iranian man told The Guardian he had been a victim of modern slavery at the hands of people smugglers in northern France.
As part of the one in, one out agreement, which came into play in August, 94 migrants who came to the UK illegally on small boats have now been removed.
In return, a total of 57 approved asylum seekers have been brought to the UK.
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Image: The man came to the UK twice on a small boat. File pic
Although the UK has sent back more migrants than it has accepted, the two countries have committed to exchange an equal number of people in each direction.
The end of October saw more migrants having crossed the Channel in 2025 than the entirety of 2024.
Home Secretary Shabana Mahmood said: “Anyone looking to return to the UK after being removed under the UK-France agreement is wasting their time and money.
“This individual was detected by biometrics and detained instantly. His case was expedited, and now he has been removed again.
“My message is clear: if you try to return to the UK you will be sent back. I will do whatever it takes to scale up removals of illegal migrants and secure our borders.”
Fire crews have been tackling a major incident after flooding hit parts of southwest Wales overnight, with people trapped in their homes and vehicles.
Joint Fire Control (JFC), which includes South Wales Fire and Rescue Service, received more than 450 calls within a 12-hour period, mainly in Carmarthenshire, according to Mid and West Wales Fire and Rescue Service (MAWWFRS).
Forty-eight people were rescued from a care home, more than 40 people were helped to safety from flooded homes, three people were rescued from a vehicle trapped in fast-flowing water, and more than 30 dogs were saved from flood-affected kennels at a shelter.
A major incident was declared after flooding at a retirement complex in Whitland in the early hours of Wednesday. At 1.35am, crews were deployed to rescue 48 people using “rescue sleds and water rescue equipment,” MAWWFRS said in a statement.
Image: Pic: MAWWFRS
Image: Three people were trapped in a vehicle in fast-flowing water. Pic: MAWWFRS
Earlier on Tuesday, in the remote village of Ffarmers, fire teams rescued three people and their two dogs who were stuck in a vehicle situated in fast-flowing water.
Fire chiefs said crews used extension ladders to reach the vehicle.
Two further incidents on Tuesday evening involved people being rescued from flooded properties in Ferryside.
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Around 42 more people were rescued in nearby St Clears, where about 20 domestic and commercial properties were flooded.
Image: Flood warnings and alerts have been in force across Wales. Pic: Natural Resources Wales
Later the same evening, crews were involved in an operation at Glanrhyd Dog Sanctuary, Kidwelly. Boats were used to evacuated dogs from a shelter which was ruined in the floods.
Owner Alison Clark told Sky News she was “broken beyond belief”.
Image: Crews transported animals from Glanrhyd Dog Sanctuary, Kidwelly, to safety. Pic: MAWWFRS
Image: All the dogs were rescued. Pic: MAWWFRS
“It’s devastating. Everything ruined or lost in the current. All white goods… freezers etc along with dog food, bedding and leads etc.
“We spent 80k on this move to make the sanctuary one of the best and now it is ruined.
“I’m broken beyond belief. My only saving grace is that I kept every dog alive.”
Among the rivers placed on flood warning – where flooding is expected – were the River Towy around Camarthen and between Llandeilo and Abergwili, the River Ritec at Tenby, the River Cynin at St Clears, the River Taf at Whitland and the River Teifi at Llechryd and Cenarth.
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Carmarthenshire County Council said a rest centre has been set up in Carmarthen Leisure Centre for those suffering the “severe impact” of flooding in the Whitland and St Clears areas.
Seven schools were closed on Wednesday in the county and the council also confirmed multiple road closures were in place due to flooding or road conditions.
Craig Flannery, Assistant Chief Fire Officer at MAWWFRS, said the rescues were “prolonged and challenging”.
“I have personally witnessed the dedication and professionalism of our staff dealing with multiple calls over a prolonged period, as well as the courageous efforts of our operational crews responding to these incidents across our Service area,” he said.
“Our crews have been truly exceptional in assisting and protecting our communities.
“We are also extremely grateful to all partner agencies who have assisted in responding to incidents during a prolonged and challenging period.”