Sir Keir Starmer met privately with the leader of the National Farmers’ Union (NFU) amid an ongoing row over inheritance tax changes which will impact farmers.
Downing Street described the Monday night meeting as “constructive”, and suggested the “serious, grown-up” Government was directly confronting criticism of its plans.
Tom Bradshaw, president of the NFU, meanwhile said he hoped his union and the Government could work together on a resolution towards the issue.
The head-to-head follows outrage from agricultural landowners about the proposed tax changes, which will see farmers pay inheritance tax on properties and land worth more than £1 million.
We will always meet with key stakeholders to hear their views, as that is what a serious, grown-up government does
Asked about reports of an undisclosed meeting, a No 10 spokesman said: “The Prime Minister did meet the National Farmers’ Union president Tom Bradshaw on Monday afternoon.
“They had a wide-ranging conversation in which the Prime Minister recognised the strength of feeling about the changes to agricultural property relief set out in the Budget and listened to the NFU’s concerns.”
The Prime Minister and Mr Bradshaw are also understood to have touched upon food security, trade, and other issues affecting farmers.
The Downing Street spokesman added: “In the meeting they discussed the Government’s commitments to solidly protecting the interests of British farmers including in trade negotiations and in public sector procurement, as well as working together to ensure environmental land management schemes deliver for farmers.
“We will always meet with key stakeholders to hear their views, as that is what a serious, grown-up government does.
“But the Prime Minister took the opportunity to have a constructive conversation with Mr Bradshaw about why we believe the changes are the right approach and to discuss how they can work together to support British farmers.”
Mr Bradshaw meanwhile said: “I welcome the Prime Minister asking to hear directly about farmers’ concerns, and I am grateful to him for taking the time to do so.
“I hope we can work together towards a resolution on this issue.”
At the heart of the spat between the Government and farmers is disagreement about how many of their number will be affected by the tax changes.
While ministers estimate some three quarters of farmers will not be impacted, the NFU claims plans to bring together the agricultural tax break with another for business property will draw farmers more into paying it.
The Institute for Fiscal Studies said it believes “significantly fewer” than the 500 farms a year estimated by the Government will be impacted by the changes.
The economics-focused think tank said some “relatively simple tax planning” will ensure farms worth more than £2 million will not hit the threshold at which they have to start paying inheritance tax.
Thousands of farmers took to the streets of Westminster on November 19 to make their opposition to the reforms known.
Under the measures announced at the Budget, farmers will pay a rate of 20% inheritance tax on agricultural property and land worth more than £1 million when they previously paid none.
There is a higher threshold of £3 million for couples passing on their farms.
Tim Bonner, chief executive of the Countryside Alliance, said the announcement had “caused huge anxiety in the countryside”.
He added: “The problem is not that the Government is trying to tackle tax avoidance, which is a perfectly legitimate aim, but that the original proposal did not protect family farms as was promised.
“I hope that the Prime Minister can find a way of delivering this change in consultation with the farming community and avoid what will otherwise become a long running and toxic political battle.”
Shadow environment secretary Victoria Atkins tweeted: “Enough is enough. It’s time Labour MPs decide who they back: British farmers or party loyalty.
“The Conservatives will call a vote where the choice is simple for Labour MPs: vote to axe the tax or back Rachel Reeves’ Budget of Broken Promises.”
