London (Parliament Politics Magazine) – PM Keir Starmer has told the Welsh Labour meeting he would support Labour’s Budget “all day long” as farmers opposed inheritance tax changes outside the venue.
Praising a “new era” of Labour Wales and Labour Britain “pulling in the same direction”, the Prime Minister expressed the Welsh branch had “carried the torch” for the party during 14 years of Conservative government in Westminster. In his first address as Prime Minister to the conference, Sir Keir hailed the election of 27 MPs in July, pushing Wales into a “Tory-free zone”.
Why are farmers protesting inheritance tax changes in Wales?
As he spoke, farmers dissatisfied with the changes to inheritance tax revealed in Rachel Reeves’ first Budget gathered with tractors outside the meeting venue in protest. Protest managers Digon yw Digon – which translates as Enough is Enough – stated: “Our Government isn’t working or listening to us.”
A Welsh farmer and YouTuber expressed farmers will deliver a letter to Sir Keir which begins: “Don’t bite the hand that feeds you.” “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.”
A row has exploded over the new taxes for farms worth more than £1 million, aggravated by uncertainty regarding the figures Ms Reeves based the decision on. Treasury data indicates that around three-quarters of farmers will spend nothing on inheritance tax as a result of the controversial shifts announced in the Budget last month. However, farmers have questioned the figures, pointing instead to data from the Department for Environment Food and Rural Affairs which indicates 66% of farm businesses are worth more than the £1 million threshold at which inheritance tax will now need to be paid.
How did Keir Starmer defend Rachel Reeves’ budget decisions?
PM Keir did not cite the inheritance tax explicitly in his address, but said he would support the “tough decisions” his Government has made. “Make no mistake, I will defend our conclusions in the Budget all day long, adding: “I will defend facing up to the harsh light of fiscal reality. I will defend the tough decisions that would be required to stabilise our economy and I will defend protecting the pay slips 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.”