'It wasn't a manifesto commitment': Darren Jones denies Labour broke tax promise to farmers

Darren Jones: Labour's promise not to change inheritance tax for farmers 'wasn't a manifesto commitment'

Bristol North West MP and Treasury deputy Darren Jones has denied Labour broke a promise by changing inheritance tax rules for farmers, despite the Party saying before the election it had "no intention" of doing so.

Speaking on The West Country Debate, the chief secretary to the treasury said "it wasn't a manifesto commitment".

"The manifesto commitments were very clear, to protect working people which the last government didn't do, by introducing stealth taxes on the wages people earn across the country," he said.

"Secondly, of course what Steve Reed didn't know before the election was the mess that we found in the public finances. We can't get back to fiscal and economic stability without getting a grip of public finances."

Many farmers across the South West and the rest of the country are still furious over the government's decision to start charging an inheritance tax rate of 20% on farms valued at more than £1 million.

With other tax allowances, it's understood the threshold is more likely to stand at £3 million, but the National Farmers' Union (NFU) is adamant thousands of farmers could be heavily impacted, with many worried about how they will afford to pass down their farms to the next generation.

John Glen, Conservative former chief secretary to the treasury and MP for Salisbury, said he doesn't agree with the decision and believes the Treasury estimation that only 500 of the wealthiest farmers will have to pay, is false.

He said: "All governments will make different decisions, I don't agree with this decision. There are alternatives that could have been done.

"But it's also about trust as well. There was a clear commitment from Steve Reed. He didn't want this to happen. It was a hit and run by the Treasury and I think it's very regrettable."

Anna Sabine: Farmers are 'not the ordinary person' and 'that's why they need to be treated differently'

The government is maintaining that farmers will continue to be treated generously, even when the 20% inheritance tax charges comes into force from April 2026, because they will still pay half of the standard 40% IHT rate.

Anna Sabine, Frome and East Somerset's Liberal Democrat MP, said farmers "are not the ordinary person" and should be treated differently when it comes to inheritance tax.

"They're not just living in those houses and having lovely grounds and playing croquet on them," Ms Sabine said.

"They're working the land and making huge investments on those estates, on the basis that that's what the country needs, and they're not necessarily drawing much income off it.

"It's totally false to draw equivalence between between your average homeowner and a farmer. They're totally different categories and that's why they need to be treated differently."

The comments by the chief secretary to the treasury come as his colleague, Environment Secretary Steve Reed, addressed farmers on Thursday for the first time since the announcement in the Budget.

He said it is "hard to be sorry for trying to make the country's economy work" but added that he recognises the "frustration and anxiety" that introducing the 20% tax has had.

The full edition of The West Country Debate can be watched on ITVX here.

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