#3 Inside Labour: Labour does stand up for the countryside
In July, rural communities across the country voted for change. Many backed Labour for the first time. In doing so, these voters were choosing a better NHS, a growing economy, and renewed public services.
But, after the Tories wrecked our public finances, this government has to make tough choices. Targeting the wealthiest landowners by reforming farmers' inheritance tax is one of those tough choices. Ultimately, if it means better public services for rural communities, it will be the right choice.
New polling from our research team at Labour Together shows that the top priorities of rural communities are in line with the rest of the electorate: the cost of living (55% vs 52% among all Brits), immigration (50% vs 43%), the economy (44% vs 40%), and the NHS (36% vs 40%).
At the other end of the spectrum, just 9% of rural voters say that tax is a top issue facing the country. This is four points below the proportion of all Britons who picked tax (13%).
That’s not remotely to belittle the concerns of farmers travelling to Westminster today. Far from it.
It’s correct that Labour MPs listen carefully and engage with the NFU. Agriculture contributes £13.7 billion to our economy and employs over 460,000 people. That’s almost half a million people working daily to feed us with the best food and drink in the world.
Labour MPs, this Labour government, and we at Labour Together are hugely proud of the contribution farming makes to the UK. We want to see the sector succeed, flourish, and grow.
That’s why the government has protected the farming budget with Rachel Reeves announcing £5 billion to help farmers produce food over the next two years. That’s the largest amount ever allocated for sustainable food production. £60 million has been allocated to support farmers who have suffered the devastation of severe flooding.
The government has also announced £208 million investment in defences against disease threats to protect the farming industry, food security and human health.
To fully secure farming for the future, Environment, Food & Rural Affairs Secretary Steve Reed is delivering Labour’s New Deal for Farmers. This will protect farming in trade deals, introduce a new commissioner for the tenant farming sector, and support our farmers by sourcing more local, British produce for our schools, hospitals, prisons, councils, and the military.
Labour is clearing up the financial mess the Tories left behind
The Tories left one hell of a mess, ratcheting up uncosted spending commitments resulting in a multi-billion pound black hole in the national finances.
It’s fallen to this Labour government to pick up the pieces and bring order to the accounts.
Without a sound approach to tax and spend, we will never fix the foundations of the economy. Without fixing the problems in the economy and getting growth motoring, we will be unable to invest in the NHS and other vital public services that we know people in rural communities so desperately need.
That, in essence, is why this government is reforming Agricultural Property Relief. As Rachel Reeves has outlined, under these reforms, only the very richest estates will pay. The vast majority — almost three-quarters of farmers — will not be affected.
In practical terms, when combined with all the other relevant inheritance tax exemptions, the minimum tax-free allowance for a farmer passing in on will be up to £1 million. A couple who jointly own a farm will be able to pass on land and property valued up to £3 million to a child or grandchild.
Don’t forget, of course, anything above this will be taxed at half the rate paid by everyone else. That means they would pay inheritance tax at a reduced rate of 20% rather than the standard 40%. And the heirs will be able to spread payment over ten years interest-free instead of having to pay it all at once.
The Tories need to explain how their sums add up
If Kemi Badenoch wants to tell farmers today that the Tories will reverse the tax changes, she needs to explain what services she would cut instead. Will it be health services or rural transport services? Or will her Tories make more Liz Truss-style mistakes - borrowing again for unfunded tax cuts and causing mortgage misery across rural communities?
That’s the last thing hard-working families across the countryside need.
Jonathan Ashworth
Chief Executive, Labour Together
In case you missed it
Why Labour’s high command has become very obsessed with bills and borders | An analysis by Labour Together, the influential campaign group, rightly cautions: “This Labour government has been cautiously hired, on a trial basis, liable to prompt dismissal if it deviates even slightly from its focus on voters’ priorities.”
