The government will not U-turn on controversial changes to inheritance tax rules for farmers, No.10 has confirmed.
Keir Starmer’s official spokesman ruled out any climbdown as thousands of farmers, many of them driving tractors, once again descended on Westminster to protest against the policy.
Some of the placards on display read “No farmers, no food” and “Starmer Farmer Harmer”.
Rachel Reeves announced in the Budget that farms worth more than £1 million will become liable for the charge, albeit at the reduced rate of 20%.
Farmers’ leaders have warned that the move - which ministers say is necessary to help fill a £22 billion financial black hole left by the Tories - will put many farms out of business.
But asked if there could be a re-think on the inheritance tax changes, the PM’s spokesman said: “No. We have been clear that we understand the strength of feeling about the changes, but we are clear that this will only affect a small number of estates.
“Three-quarters of estates will be unaffected by these changes. But the government’s commitment to farmers is steadfast.”
He said the Budget had also seen the government pledge £5 billion-worth of support for farmers “which is already starting to land in farmers’ pockets”.
The spokesman added: “We recognise the strength of feeling, but we are committed to supporting our farmers, delivering rural economic growth and boosting Britain’s food security.”
Tom Bradshaw, the head of the National Farmers Union, had earlier told MPs that he feared some elderly farmers could commit suicide as a result of the policy.
If a farm is passed on to another family member, it is not subject to inheritance tax if the original owner lives for another seven years.
But giving evidence to the rural affairs committee, Bradshaw broke down in tears as he said: “Those people who are either in ill health or don’t believe they are going to be able to live for seven years may well decide that they shouldn’t be here on April 26.
“No policy should ever be published that has that unintended side-effect.”