Is Keir already lining up his next U-turn? Starmer faces fresh rebellion from Labour MPs over his 'family farm tax'
Sir Keir Starmer has been put on notice of a fresh Labour rebellion over the Government's 'family farm tax'.
More than 40 Labour MPs are said to be considering a bid to water down looming changes to agricultural and business inheritance tax relief.
It comes after the Prime Minister performed a trio of embarrassing U-turns in recent weeks.
Sir Keir has reversed his position on axing the winter fuel payment for millions of pensioners, a national grooming gangs inquiry, and welfare cuts.
This has left Labour rebels feeling emboldened that they can force the Government into further policy changes.
According to the Telegraph, a group of Labour backbenchers are considering using amendments to legislation to exempt small family farms from a planned tax raid.
At last year's Budget, Chancellor Rachel Reeves announced farmers will pay a 20 per cent rate of inheritance tax on land and property they inherit worth more than £1million.
The Government has insisted the measures - dubbed the 'family farm tax' and set to be in place from April 2026 - will only affect the wealthiest quarter of landowners.
But the National Farmers' Union (NFU) and others say the impact of Ms Reeves' measures will be much more widespread.
Critics claim the move could wipe out family-run farms with tight margins, as they will be forced to sell up in order to pay death duties.
There have been months of demonstrations by farmers in response to the Chancellor's tax raid, including tractor protests in Wesminster.
A 'rural growth group' of Labour MPs is now proposing the raising of the £1million cut-off point at which estates lose their tax reliefs.
They have suggested estates receive full tax relief on the value of agricultural properties up to £10million, 50 per cent to £20million, and nil thereafter.
Sam Rushworth, Labour MP for Bishop Auckland, who is a member of the group, told the newspaper they would 'consider what amendments to put down'.
Mr Rushworth said: 'We are all keen to avoid amendments. I don't want it to get to that point. I am a Labour MP and I broadly support the Government.
'I would like to see them bring forward different recommendations in the Bill.'
Ex-Cabinet minister Louise Haigh, who was a leading rebel over the Government's now partially-reversed welfare cuts, has called for Sir Keir to 'reset' his relationship with the British public.
'I think this is a moment and an opportunity to reset the Government's relationship with the British public and to move forward, to adopt a different approach to our economic policy and our political strategy,' she told the BBC in the wake of the PM's climbdown on welfare changes.
'And I think that has been accepted from within government and a lot of people, both in the parliamentary Labour Party, but crucially, the country will really welcome that.'
The Government's original welfare package had restricted eligibility for Personal Independence Payment (PIP), which is the main disability payment in England.
It also cut the health-related element of Universal Credit.
But, after Sir Keir offered concessions to rebel MPs, the changes to PIP will now only be implemented in November 2026 and apply to new claimants only.
All existing recipients of the health element of Universal Credit will also have their incomes protected in real terms.
A Government spokesman said: 'Our reforms to agricultural and business property relief are vital to fix the public services we all rely on.
'Three quarters of estates will continue to pay no inheritance tax at all, while the remaining quarter will pay half the inheritance tax that most people pay, and payments can be spread over 10 years, interest-free.
'We're investing billions of pounds in sustainable food production and nature's recovery, slashing costs for food producers to export to the EU and have appointed former NFU president Baroness Minette Batters to advise on reforms to boost farmers profits.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Glasgow Times
26 minutes ago
- Glasgow Times
Any cut to cash Isa allowance ‘may not prompt savers to boost their investments'
The comments follow speculation that plans to cut the annual tax-free cash Isa allowance could be announced in Chancellor Rachel Reeves's Mansion House speech on July 15. The Government is looking at options for reforms to Isas to get what it feels is the right balance between cash and equities, to help savers earn better returns, boost the culture of retail investment, and support the push for growth. The Financial Conduct Authority (FCA) has previously said there are around seven million adults in the UK with £10,000 or more in cash savings who may be missing out on the benefits of investing throughout their lives. Sarah Coles, head of personal finance at Hargreaves Lansdown, said: 'Cash Isas are often a first port of call when people are starting out, and they'll often gradually move over into investments as they find their feet. 'If the speculation is accurate, it means they'll have less available to transfer into a stocks and shares Isa – effectively reducing investments rather than boosting them. 'This is an issue which requires a carrot not stick approach. 'We know through extensive research that the barriers to investing are behavioural, so it's through encouragement and increased confidence that we will all increase the number of retail investors. 'This week's announcement of radical changes to financial information, through targeted support and changes to the boundary between financial advice and guidance, is a major breakthrough in supporting people to find that confidence to make the first step.' The FCA set out proposals earlier this week to help more people navigate tricky financial decisions and boost confidence when getting to grips with investments. The proposals would enable firms to offer a new type of help called 'targeted support' and make suggestions to groups of consumers with common characteristics. Brian Byrnes, head of personal finance at savings provider Moneybox, said: 'Over the last two decades since their introduction, Isas have grown to become a much loved and trusted tool by the British public and Isa wrappers have become synonymous with their £20,000 annual limit. 'The current speculation around potential changes to the cash Isa is undoubtedly already causing uncertainty and confusion for consumers, which will weigh particularly heavily on first-time savers and those with less financial confidence who will naturally be more hesitant to explore new products. 'Simply cutting the tax-fee allowance on cash Isas will not necessarily prompt equal inflows into investing products either. 'People opt to use cash Isas over their stocks and shares counterparts for a multitude of reasons, including risk aversion, and reducing the amount of money these savers can put into the cash Isa is unlikely to change this mindset. 'Cash Isas specifically are perfect for anyone looking to build up emergency savings and achieve their short to medium-term financial goals. 'Once people have the peace of mind and security that cash savings provide they are more likely to have the confidence to start investing for their future.' Jeremy Cox, head of strategy at Coventry Building Society, said: 'The days of peaks and troughs in the cash Isa market are long gone. 'We used to see a rush to make the most of the cash Isa allowance by savvy savers at the beginning and end of each tax year. 'Since the recent uncertainty around the future cash Isa limit, and with higher interest rates eating into the tax-free personal savings allowance, more savers have been topping up their Isa contributions every month.' He added: 'Changing limits around cash Isas would be a risky move for the Government – these accounts are extremely popular with millions of savers, many close to or in retirement who don't want the risk and uncertainty associated with investment in stocks and shares. 'The billions being saved every year are an indication of how tax policy can be really successful in encouraging people to save responsibly.' But Michael Healy, UK managing director of trading platform IG, said: 'We're calling for the cash Isa to be scrapped altogether, so we can start channelling more tax relief and long-term wealth into reviving the UK stock market. 'Successfully building a culture of investing would have a seismic impact.' In May, Ms Reeves confirmed she does not plan to reduce the overall £20,000 limit on the amount that can be put into Isas each year. In an interview broadcast on BBC Newscast, the Chancellor was asked whether, in a few years' time, someone would be able to put a whole £20,000 per year into an Isa, as they are able to do now. Ms Reeves told the BBC: 'First of all, very few people are able to save £20,000 a year … we still want people to be able to save and I'm certainly not going to reduce that limit.' The Financial Times reported this week that, according to a Whitehall figure, discussions were still taking place about the precise level for the cash Isas. While cash savings provide an important financial buffer, the Government also wants to see more consumers benefit from the long-term returns that investing can provide. Ms Reeves has said: 'It's really important that we support people to save, to achieve their aspirations. 'I'm not going to reduce the £20,000 Isa limit but I do want people to get better returns on their savings, whether that's in a pension or in their day-to-day savings.'
South Wales Guardian
26 minutes ago
- South Wales Guardian
Any cut to cash Isa allowance ‘may not prompt savers to boost their investments'
The comments follow speculation that plans to cut the annual tax-free cash Isa allowance could be announced in Chancellor Rachel Reeves's Mansion House speech on July 15. The Government is looking at options for reforms to Isas to get what it feels is the right balance between cash and equities, to help savers earn better returns, boost the culture of retail investment, and support the push for growth. The Financial Conduct Authority (FCA) has previously said there are around seven million adults in the UK with £10,000 or more in cash savings who may be missing out on the benefits of investing throughout their lives. Sarah Coles, head of personal finance at Hargreaves Lansdown, said: 'Cash Isas are often a first port of call when people are starting out, and they'll often gradually move over into investments as they find their feet. 'If the speculation is accurate, it means they'll have less available to transfer into a stocks and shares Isa – effectively reducing investments rather than boosting them. 'This is an issue which requires a carrot not stick approach. 'We know through extensive research that the barriers to investing are behavioural, so it's through encouragement and increased confidence that we will all increase the number of retail investors. 'This week's announcement of radical changes to financial information, through targeted support and changes to the boundary between financial advice and guidance, is a major breakthrough in supporting people to find that confidence to make the first step.' The FCA set out proposals earlier this week to help more people navigate tricky financial decisions and boost confidence when getting to grips with investments. The proposals would enable firms to offer a new type of help called 'targeted support' and make suggestions to groups of consumers with common characteristics. Brian Byrnes, head of personal finance at savings provider Moneybox, said: 'Over the last two decades since their introduction, Isas have grown to become a much loved and trusted tool by the British public and Isa wrappers have become synonymous with their £20,000 annual limit. 'The current speculation around potential changes to the cash Isa is undoubtedly already causing uncertainty and confusion for consumers, which will weigh particularly heavily on first-time savers and those with less financial confidence who will naturally be more hesitant to explore new products. 'Simply cutting the tax-fee allowance on cash Isas will not necessarily prompt equal inflows into investing products either. 'People opt to use cash Isas over their stocks and shares counterparts for a multitude of reasons, including risk aversion, and reducing the amount of money these savers can put into the cash Isa is unlikely to change this mindset. 'Cash Isas specifically are perfect for anyone looking to build up emergency savings and achieve their short to medium-term financial goals. 'Once people have the peace of mind and security that cash savings provide they are more likely to have the confidence to start investing for their future.' Jeremy Cox, head of strategy at Coventry Building Society, said: 'The days of peaks and troughs in the cash Isa market are long gone. 'We used to see a rush to make the most of the cash Isa allowance by savvy savers at the beginning and end of each tax year. 'Since the recent uncertainty around the future cash Isa limit, and with higher interest rates eating into the tax-free personal savings allowance, more savers have been topping up their Isa contributions every month.' He added: 'Changing limits around cash Isas would be a risky move for the Government – these accounts are extremely popular with millions of savers, many close to or in retirement who don't want the risk and uncertainty associated with investment in stocks and shares. 'The billions being saved every year are an indication of how tax policy can be really successful in encouraging people to save responsibly.' But Michael Healy, UK managing director of trading platform IG, said: 'We're calling for the cash Isa to be scrapped altogether, so we can start channelling more tax relief and long-term wealth into reviving the UK stock market. 'Successfully building a culture of investing would have a seismic impact.' In May, Ms Reeves confirmed she does not plan to reduce the overall £20,000 limit on the amount that can be put into Isas each year. In an interview broadcast on BBC Newscast, the Chancellor was asked whether, in a few years' time, someone would be able to put a whole £20,000 per year into an Isa, as they are able to do now. Ms Reeves told the BBC: 'First of all, very few people are able to save £20,000 a year … we still want people to be able to save and I'm certainly not going to reduce that limit.' The Financial Times reported this week that, according to a Whitehall figure, discussions were still taking place about the precise level for the cash Isas. While cash savings provide an important financial buffer, the Government also wants to see more consumers benefit from the long-term returns that investing can provide. Ms Reeves has said: 'It's really important that we support people to save, to achieve their aspirations. 'I'm not going to reduce the £20,000 Isa limit but I do want people to get better returns on their savings, whether that's in a pension or in their day-to-day savings.'
Sky News
28 minutes ago
- Sky News
Energy future: Paying up front should lead to tangible savings ahead
Why you can trust Sky News Ofgem's approval of a £24bn investment in expanding the energy grid, and the £102 bill increase that will pay it, is an acknowledgement that cleaner, more predictable and hopefully cheaper prices in future will only come at a price today. The investments given the green light today, £10bn of which will be spent by the three electricity grid operators in England, are fundamental to the UK's energy transition. They will pay for new high-voltage cables, on pylons, underground and undersea, along with new substations and circuitry required to connect new renewable sources, primarily offshore wind, to the people who need it. It is a massive and ambitious project that will ultimately cost £80bn with the goal of delivering a clean power grid. The aim is to reduce both emissions and the UK's reliance on volatile wholesale gas markets, which both underpin electricity supply today, and set the price in the market, even when renewables provide the majority of supply. That volatility saw domestic bills rise above £4,000 in the wake of Russia's invasion of Ukraine, prompting Liz Truss to authorise a £40bn state subsidy to cap bills at £2,500 for every household in the country. 1:57 An expansion of renewables and storage capacity alongside new nuclear should at some point in the future tip the balance so gas is no longer king in the UK market. To get there however we are all going to have to pay upfront, in the shape of subsidies and price guarantees to incentivise the building of renewables, and the increase in "network costs" announced by Ofgem today. Over time these investments should deliver tangible savings. These will include an end to "constraint payments" paid to power stations and wind farms to switch off in times of excess supply because the grid can't handle the load. They cost customers more than £1bn last year and are forecast to more than double before new infrastructure brings them down. Ofgem say that will save around £80 per household, cutting the net cost expansion to just £24 per-household per-year. The private companies delivering the investment meanwhile - National Grid in England and SSE and Scottish Power in Scotland - will receive a return on their investments of 6% on equity, an average of 5.57% on debt, and be permitted to take dividends of 3%. A fair return says Ofgem. Consumers will want service and prices to match if they are to agree.
