Ministers “slipped” to announce they had decided to roll out an inheritance tax on farmers. Conservatives said this after the government announced the move in a press release two days before Christmas.
Victoria Atkins, the shadow environment secretary, accused the government of trying to avoid scrutiny of its latest policy change, which will see the tax threshold on inherited agricultural land rise from a planned £1 million to £2.5 million.
Moving was announced in a Department of Environment press release on Tuesday, following months of pressure from farmers, campaigners and some Labor MPs.
Atkins told Sky News on Wednesday morning: “The fact that we slipped away the day before Christmas Eve means we certainly didn't have the opportunity to scrutinize this in Parliament.”
She added: “It seems very strange that they only stole it the day before Christmas Eve.
“And what's more, it was the Secretary of State [Emma Reynolds, the environment secretary] who announced it, not the chancellor. The Secretary of State just made a press video yesterday. She's not even on [broadcast media] today… explaining his policies to the nation.
“So they're trying to kind of sneak away from it when everyone else is distracted by preparing for Christmas.”
Rachel Reeves first announced In last year's Budget it intended to tax inherited farming assets worth more than £1 million at 20%, ending benefits that had been in place since the 1990s.
Since then, there has been concerted pressure on the Chancellor to change course, with farmers regularly protesting in Westminster and rural Labor MPs warning of the consequences for their constituents.
Dozens of Labor MPs were reportedly preparing to rebel against the government and support an amendment to the tax bill due to be debated in parliament next month.
Keir Starmer, Prime Minister, confirmed last week fears that some farmers are contemplating suicide due to the changes are concerns that have also become prominent. recent report from the government – former head of the National Farmers' Union (NFU) Minette Butters.
Reynolds said on Tuesday the government would raise the threshold at which the tax is charged from £1 million to £2.5 million.
This will reduce the amount of money raised from £430 million to £300 million, according to the Treasury. Officials have not said where the extra money will come from, although the lost £130m is just a fraction of the £22bn reserve Reeves has despite her own budget rules.
Tom Bradshaw, NFU president, said Tuesday the announcement was a “huge relief for many.”
Atkins, however, did not say whether the Conservatives would scrap the tax altogether if they came to power at the next election.
“We need clarity from the government on how this will apply. There will still be farms where – because of the investment and care of the land by their fathers, grandparents and great-grandmothers for generations – they simply cannot pay that tax bill, even despite this welcome U-turn from the government,” she said.
