Labour veteran Lord Blunkett has stated that his party's proposed family farm tax was a "mistake," acknowledging that it "touched a nerve" with rural communities. Speaking at a Countryside Alliance event, the former home secretary advocated for Prime Minister Andy Burnham to lead a "rural reset" aimed at rectifying the impact of the party's initial two years in power.
Initially, then-chancellor Rachel Reeves had announced plans to impose a 20 percent inheritance tax on assets exceeding £1 million, which would have ended a waiver in place since the 1980s. Following protests from rural groups, the threshold was raised to £2.5 million, though critics contend that working family farms could still be affected. Lord Blunkett attributed the unpopular plan to "Treasury economic orthodoxy."
"I think the family tax, the family farm imposition, was a mistake – a mistake made in the Treasury represented by my own party," Blunkett said. He further emphasized the importance of rural voices within the party, noting that "around 135 Labour MPs are either rural or semi-rural." He argued that those who are primarily urban dwellers might not grasp that family farms are sustained through intergenerational transfer.
Blunkett also called for the manifesto's proposed ban on trail hunting to be rescinded. He shared the stage with former prime minister David Cameron, who criticized Labour's stance on shooting, stating that such policies negatively impact not only shoots but also associated businesses like pubs, restaurants, and hospitality venues.
Minette Batters, former president of the National Farmers' Union, echoed the sentiment for a "rural reset." Tim Bonner, chief executive of the Countryside Alliance, highlighted 27 government policies opposed by his organization, including the extension of inheritance tax to farms, the trail hunting ban, betting rule changes, and stricter shooting regulations.
A spokesperson for the Prime Minister indicated that Mr. Burnham is focused on "rebuilding trust" with farmers and rural communities.
