The Government is eyeing up a further tax raid on farmers under its economic plan of “Starmerism”, the Conservatives have claimed.
Shadow Cabinet Office minister Alex Burghart used Prime Minister’s Questions to ask the Government to rule out further increases to inheritance tax or changes to agricultural property relief (APR) and business property relief (BPR) during the current Parliament.
Farmers have reacted with anger and dismay to inheritance tax changes for farming businesses, which limit the existing 100% relief for farms to only the first £1 million of combined agricultural and business property.
Deputy Prime Minister Angela Rayner said the “vast majority” of estate owners will be “totally unaffected” by the Government’s policy, although she did not directly address the question posed.
Ms Rayner also accused the Tories of “desperately trying to rewrite history” and “jumping on a new bandwagon” each week.
Mr Burghart told the Commons: “This is just another part of the Budget that’s unravelling.
“Everyone here and all the farmers at home will have heard there was no guarantee there.
“We know what that means, they’re coming back for more.”
The pair deputised at PMQs as Prime Minister Sir Keir Starmer has been in Brazil to attend the G20 summit.
Speaking in the Commons, Mr Burghart opened by accusing Labour of “stoking” inflation, saying: “First, we had above inflation pay rises for the unions. Then, we had a Budget, which the OBR (Office for Budget Responsibility) said was going to push up inflation.
“This morning we had City economists, real economists, saying that next year inflation would hit 3%.”
He went on to blame the Ukraine war and the Covid pandemic for driving up inflation under the Tories, adding: “This Government is doing it to the British people. High tax, high inflation, low growth, low reform, there’s a word for that, it’s Starmerism.”
Switching attention to the protest by farmers on Tuesday, Mr Burghart asked what Ms Rayner would like to say to them.
The Deputy Prime Minister said the Government is “absolutely committed” to them and highlighted £5 billion committed to the farming budget over the next two years.
Mr Burghart said: “Perhaps she thinks that everyone came to London yesterday to thank the Government?”
The Conservative MP said the Government “hasn’t got its facts right” on the policy, adding: “The Central Association for Agricultural Valuers say so, the NFU says so, they are shortly to publish a report showing that 75% of all commercial farms will fall above the threshold.
“If the Government isn’t going to reverse this terrible policy, will she at least commit that there will be no further increases to inheritance tax, and no further reductions to agricultural property relief or business property relief in this parliament?”
Ms Rayner replied: “He talks about the facts, and I absolutely stand by the figures the Government have set out, and the vast majority of estate owners will be totally unaffected.
“He wants to talk about the figures, I will be crystal clear. The vast majority of estate owners will (see) no change and pay no tax on land passed on valued at £1 million.
“Couples can pass on £3 million, tax-free, and those above the threshold will pay only half the normal rate and could pay it over 10 years, interest-free.”
Mr Burghart said the farmers policy was “another part of the Budget that’s unravelling”, adding: “Everyone here and all the farmers at home will have heard there was no guarantee there.
“We know what that means, they’re coming back for more.
“And even if (Ms Rayner) had made a promise today, it wouldn’t have been worth a thing.
“We know the Environment Secretary (Steve Reed) before the election promised the farmers that this wouldn’t happen. Labour promises get broken.
“Let’s put all of this into context. The Treasury says the family farms tax will raise on average £441 million-a-year.
“The Treasury also says that public sector pay rises the Government has announced in July will cost £9.4 billion-a-year – that’s over 21 times as much.”
Ms Rayner shot back: “I’ll school (Mr Burghart). It was his government that raised taxes to their highest level for a generation.
“It was his government that crashed the economy, that saw inflation rise and growth flatline. It was his government that spent the reserves three times over. I’ll take no lessons from (Mr Burghart).”
Mr Burghart said he could understand why Ms Rayner “doesn’t want to answer questions about the terrible choices” the Government has made, adding: “It’s because the truth is ugly.
“The truth is that this is a punishment meted out to people who don’t vote Labour.
“It’s the same punishment meted out to parents who send their children to private schools.
“It’s the same punishment meted out to the owners of small businesses terrified about national insurance contributions.
“And it’s the same punishment meted out to pensioners who can’t afford to pay their fuel this winter.”
They come here every week jumping on a new bandwagon, taking a new potshot but absolutely no word on what they would do differently.
Shouting into the microphone from close range, Mr Burghart concluded: “Isn’t it the truth that if you don’t vote Labour they don’t care about you?”
Ms Rayner replied: “After that display he clearly didn’t recognise the result of the general election and has learnt nothing.
“While this Government has been fixing the mess that they left, the Conservatives have been desperately trying to rewrite history.
“They come here every week jumping on a new bandwagon, taking a new potshot but absolutely no word on what they would do differently.”
Commons Speaker Sir Lindsay Hoyle repeatedly intervened during the session to calm tempers and at one stage alluded to a recent “run-in” with a Labour MP.
