Keir Starmer made a mistake with ‘tractor tax’ – now he must fix it
The IndependentAll governments – even the most extolled – make mistakes. Whatever the motivation for bringing many thousands of family farms, in due course, into the ambit of a harsher regime of inheritance tax, it is now clear that this part of Rachel Reeves’s controversial Budget is falling foul of that most iron of rules – the law of unintended consequences. Steve Reed, now secretary of state in charge of the sector, gave the distinct impression to the National Farmers’ Union that Labour would not change the inheritance tax rules for farms. It is at times like these that friends can offer helpful advice – and Sir Keir Starmer, Ms Reeves and Mr Reed would do well to heed the words of the general secretary of the Trades Union Congress, Paul Nowak. Dan Neidle, a highly respected tax expert, has proposed a series of reforms that would meet the government’s aims to raise revenue and curb tax avoidance while protecting real farmers with a complete exemption from inheritance tax, subject to a very large cap and certain conditions about the continuance of the family farm.