news-19112024-003856

Labour is facing a potential loss of rural MPs due to backlash over changes to farm taxes, warned by Baroness Ann Mallalieu. Tens of thousands of farmers are set to march in London to protest the government’s Budget decision to eliminate inheritance tax exemptions for some farms.

The farming community is outraged by the 20% levy on farming assets over £1 million, believing it will negatively impact countryside communities. The Labour Party is now facing accusations of betrayal from farmers and rural campaigners.

Baroness Mallalieu expressed concern over the impact of the Budget measure on Labour’s ability to retain rural MP seats. She mentioned that under Tony Blair, Labour had 100 rural MPs, which dropped to 17 after perceived attacks on the countryside. It took 14 years of Conservative governance to restore the number to 100, and there are fears that Labour may be jeopardizing this progress.

The Treasury’s estimate of only 28% of farms being affected by the inheritance tax measure is disputed by farmers’ groups, who claim up to 66% of farms could feel the impact. Despite public support for farmers, with 57% in favor of exempting them from inheritance tax, no newly elected Labour MPs have publicly supported the farmers’ calls to reverse the measure.

Baroness Mallalieu warned that once goodwill is lost, it is challenging to recover, citing the example of the fallout under Tony Blair’s government. She urged the government to act quickly to address farmers’ concerns and avoid long-term anger and frustration.

The article also highlighted the upcoming protest in London, where around 12,500 people are expected to gather to voice their opposition to the inheritance tax changes. The National Farmers’ Union will also hold a mass lobby event to engage with MPs directly on the issue.

Various Labour MPs representing rural constituencies were contacted for their response, with mixed reactions. While some defended the inheritance tax decision as necessary to address financial gaps, others expressed solidarity with farmers and pledged to support them through the transition.

Ultimately, the government defended its decision, stating that the majority of those claiming relief would not be affected by the changes. They emphasized the commitment to supporting farmers with a substantial budget allocation for sustainable food production.

As tensions rise between the farming community and the Labour Party, the outcome of the protest and ongoing dialogue between MPs and farmers will be crucial in determining the future of rural representation in the UK.