Lord Blunkett, a veteran figure in the Labour party, has conceded that a proposed family farm tax was an error. Speaking at a Countryside Alliance event, Blunkett endorsed suggestions that Andy Burnham should lead a "rural reset" to address perceived damage from Labour's initial two years in government.
The controversial inheritance tax proposal, announced by then-chancellor Rachel Reeves, aimed to levy a 20 percent charge on assets exceeding £1 million, reversing a long-standing waiver. Although the threshold was later raised to £2.5 million, mitigating the impact for many, campaigners argue it still affects ordinary family farms.
Blunkett attributed the original plan to "Treasury economic orthodoxy," stating, "I think the family tax, the family farm imposition, was a mistake – a mistake made in the Treasury represented by my own party." He emphasized that the policy had "touched a nerve."
He further highlighted Labour's success in rural constituencies, noting that around 135 Labour MPs represent rural or semi-rural areas. "Their voices need to be heard much more clearly," Blunkett argued. He added that an urban perspective, influenced by "Treasury economic orthodoxy," might fail to grasp the generational nature of family farms.
Blunkett also called for the repeal of the ban on trail hunting, which was included in the party's 2024 manifesto. His remarks were made in the presence of former prime minister David Cameron, who criticized Labour's stance on shooting activities.
Cameron asserted that an "attack on shooting" extends beyond the sport itself, impacting associated businesses such as pubs, restaurants, and accommodation providers, as well as employment within the sector.
Minette Batters, former president of the National Farmers' Union, echoed the sentiment for a "rural reset." Tim Bonner, chief executive of the Countryside Alliance, outlined 27 government policies opposed by his organization, including the inheritance tax extension, the trail hunting ban, changes to betting rules, and stricter shooting regulations.
A spokesperson for the Prime Minister stated that Mr. Burnham is committed to "rebuild trust" with farmers and rural communities.