Nigel Farage has welcomed a “Christmas gift” for British farmers after Labour confirmed a major change to inheritance tax thresholds.
The Reform UK leader, who recorded his response from his constituency of Clacton, suggested lifting the threshold from £1million to £2.5million would make an “absolutely enormous” difference for the farming community.
He said: “I’ve said to the farmers all the way through, ‘keep protesting, keep going. Do it peacefully, we’re not French, we don’t set fire to things’.
“And boy, the farming community has been very consistent, all the way through this, and now we get a U-turn.
“This Government is well-known for U-turns, but this is a very welcome U-turn.
“The raising of the threshold to £2.5million will make an absolutely enormous difference.
“Sure, some will argue it needs to go even higher but it is a massive step in the right direction for small family farms right across the country.”
Mr Farage, who admitted meeting “tearful” farmers in Clacton who had been left “terrified” by Rachel Reeves’s inheritance tax raid, also claimed Labour had been forced into the U-turn due to growing discontent from backbench MPs.
He added: “This is good news, a massive step in the right direction, this is a welcome Christmas gift for our embattled rural communities.
“They’re under attack elsewhere. If you have a look at their new proposals by 2030 for animal welfare, it’ll disadvantage British farmers against our competition in Europe, let alone the attempt to even ban trail hunting.”
Farmers rejoiced earlier today when Labour confirmed it caved to pressure to increase the inheritance tax levy.
The change, which will see the 20 per cent charge only cover agricultural assets valued over £2.5million next April and enables couples to pass on up to £5million, will now impact 1,100 rather than 2,000 estates.
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Farmers will also receive 50 per cent relief on qualifying assets above the threshold, paying a reduced effective rate of up to 20 per cent rather than the standard 40 per cent.
In an announcement put out after MPs had left Westminster for the Christmas recess, Environment Secretary Emma Reynolds said: “We have listened closely to farmers across the country and we are making changes today to protect more ordinary family farms.”
“It’s only right that larger estates contribute more, while we back the farms and trading businesses that are the backbone of Britain’s rural communities, ” she added.
The Chancellor sparked fury when she initially announced Labour would reverse the four-decade inheritance tax relief afforded to farmers.
Tractors frequently descended on Westminster, resulting in a handful of farmers facing arrest last month.
Labour MP Markus Campbell-Savours, who represents the rural Cumbrian seat of Penrith & Solway was also stripped of the party whip on December 3 after voting against Ms Reeves’s measures.
Despite offering some respite for farmers, Tory leader Kemi Badenoch urged farmers to continue to protest against Labour’s measures.
“This fight isn’t finished,” Mrs Badenoch said. “Other family businesses are still affected by Labour’s tax raid, and we will keep pushing until the tax is lifted from them too.”
Meanwhile, Liberal Democrat rural affairs spokesman Tim Farron MP said: “It is utterly inexcusable that family farmers have been put through over a year of uncertainty and anguish since the government first announced these changes.
“We demand that the Government scraps this unfair tax in full and if they refuse to, Liberal Democrats will submit amendments in the new year to bring it down.”
Farmers appear to have been galvanised by the announcement, looking to exert further concessions from Labour.
Campaign group No Farmers, No Food said: “Huge news for family farmers. The Labour Government have finally U-turned on the inheritance tax on family farms. It’s still not enough, but it’s still a huge victory for everyone who has relentlessly campaigned on this.”