UK (Parliament Politics Magazine) – Labour minister Torsten Bell says Chancellor Rachel Reeves’ inheritance tax on farmers will fund shoplifting fight, sparking backlash amid farm closures.
As reported by The Telegraph, a minister hints Rachel Reeves‘ farmers’ tax could fund efforts to tackle shoplifting.
What did Torsten Bell say about inheritance tax and police funding?
Treasury Minister Torsten Bell said the Chancellor’s inheritance tax changes will free up funds for more police, reducing security costs for shops.
During an interview on the BBC, he stated,
“If you go back to the autumn Budget last year, which is when the big decisions this Government made were taken, yes, there were some tough decisions on tax.”
Mr Bell said,
“I understand why people affected by those would rather they hadn’t taken place. But if you look at the decisions we’ve had to make on inheritance tax, or capital gains tax, or on non-doms or on VAT on private schools, we’re doing the right thing to make sure that we can have sustainable public finances.”
The pension minister stated,
“But also that we can bring austerity to an end, so we can start to rebuild public services. And in the end, that is the pro-business choice, just like it’s the pro-public services choice.”
He added,
“Because we can’t have retail businesses having to deal with paying to put security guards on their door because there aren’t enough police on the beat. We can’t have people having to pay a health charge in effect because their workers aren’t able to turn up to work because waiting lists are too long in the NHS.”
Mr Bell’s comments may intensify criticism of the Government’s handling of agricultural property relief and the shoplifting crisis.
What measures are being taken against rising shoplifting?
The shoplifting crisis shows no signs of slowing, with around three thefts a minute and losses reaching £1.8bn.
Policing minister Dame Diana Johnson warned businesses last week against placing alcohol at store entrances, warning it could be stolen.
The Prime Minister’s official spokesperson said Sir Keir Starmer will not label shoplifters as “scumbags,” amid a free speech dispute.
North Wales Police clarified their position after advising a retailer that a sign calling shoplifters ‘scumbags’ could be offensive.
How is Rachel Reeves’s “family farm tax” affecting UK farmers?
Thousands of UK farms face closure this year after the new inheritance tax on family farms. At present, family-owned farms are exempt from inheritance tax and receive full relief on the standard rate.
Ms Reeves announced in her initial Budget that inheritance tax will be charged at 20% on estates exceeding £1 million.
The Office for National Statistics reports that 6,365 farming, forestry, and fishing enterprises closed in the past year. Farmers warn that the inheritance tax may force them to sell land to pay the bill.
Some farmers say the rising inheritance tax could create a ‘suicide window’ for older business owners.
According to the British Growers Association, growers are facing yet another summer of extreme weather, with some regions being hardest hit.
How are political parties reacting to Labour’s farm tax policies?
Shadow Environment Secretary Victoria Atkins blamed farm closures on “Labour’s disastrous tax policies.”
Reform UK claims that the Chancellor’s tax policy, alongside broader £40bn measures, is “pushing British farming to the brink.”
What did Simon Gerrard say about Rachel Reeves’ new tax on property?
Rachel Reeves’s proposed property tax on homes over £500,000 has been criticised as a “tax on ordinary Londoners.”
Simon Gerrard, chairman of Martyn Gerrard Estate Agents, said,
“Rightmove’s latest figures for August show that the average price of a property in London is now £666,983. Upping taxes for properties over £500K is not making the wealthy pay their fair share, it’s a tax on ordinary Londoners.”
He stated,
“It’s already nearly impossible for normal people to start a family in London as it is. This London tax will only make it harder.”
Mr Gerrard warned,
“You’re going to see a ceiling at the £500,000 threshold for that band of the market, as people avoid falling under the regime, and then a significant jump in values with nothing in between,” adding, “Prices above £500,000 will skyrocket as sellers account for the losses caused by the tax that used to be paid by the buyer.”
Inheritance tax in the UK
Inheritance Tax in the UK is a tax on money, property, and possessions when someone dies.
Each person can pass on up to £325,000 tax-free, or £500,000 if leaving a home to children or grandchildren. Anything above this allowance is usually taxed at 40%.