After Rachel Reeves said that Labour’s inheritance tax raid is a “fair deal” for farmers, GB News asks its members if the Chancellor is right.
Reeves, who unveiled measures to end inheritance tax exemptions for farmers last month, defended the policy amid a backlash from rural communities.
Standing by her decision yesterday, the Chancellor said: “This Government had to make a number of difficult decisions in the Budget last month to put our public finances back on a firm footing, difficult decisions on spending, on welfare and on tax.
“I would just say this, around agricultural property relief. If you’re a couple who own a farm, including a home on the farm, you can pass on £3million tax free to the next generation.
POLL OF THE DAY: Do you agree with Rachel Reeves that her plan is a ‘fair deal’ for farmers? – YOUR VERDICT
GB News
“Beyond that, £3million, you are taxed at half of the rate that everybody else is taxed for inheritance tax at 20 per cent, compared to 40 per cent.
“Where there is an inheritance tax bill, you can pay that over 10 years interest free in a way that no one else paying inheritance tax can.
“So I think this is a fair deal for farmers, whilst also ensuring that we bring in the money to get our public finances back on a firm footing.”
However, the National Farmers’ Union has warned that combining allowances for both IHT relief and business property relief could leave far more agricultural businesses exposed to the tax.
Rachel Reeves introduced the hike in her budget PAThe farming community’s opposition is set to reach Westminster next week, with an unprecedented 1,800 farmers planning to gather for a mass protest – triple the originally expected numbers.
Welsh First Minister Eluned Morgan appeared to add fuel to the fire after urging farmers to “calm down” ahead of scheduled protests.
Baroness Morgan claimed that only a “tiny proportion” of farms would be impacted by the tax raids – but admitted the number was still being assessed.
She added: “I just think we should just all calm down a bit until we are clear about how many farms will be affected.”
Farmers are to be hit with inheritance tax after the Chancellor announced plans earlier this week to scale back agricultural relief on land up to £1millionPAPlaid Cymru’s Cefin Campbell said farmers were “rightfully worried about the impact Labour’s Budget will have on them”.
Andrew RT Davies, the Conservative leader in the Welsh Senedd, also argued that her remarks “show how little this Labour Welsh Government understands the rural community”.
Mo Metcalf-Fisher, the director of external affairs at the Countryside Alliance, added: “Talk about misjudging the public mood.
“These patronising comments suggest the First Minister is lacking in basic empathy for the people that feed us and maintain our countryside, despite the many obstacles in their way.
A whopping 98 per cent of GB News members who voted in the poll said they do not agree with Rachel Reeves and her plan being a ‘fair deal’ for farmers.
Meanwhile, just two per cent agree with the Chancellor and her plan.