Former Labour minister Lord Blunkett has called for a "rural reset," criticizing the recent inheritance tax on farms and urging Prime Minister Andy Burnham to better address the needs of the countryside. His remarks align with criticism from former Prime Minister Lord Cameron on similar rural policy issues.
Blunkett, a longtime mentor to Burnham, stated that the 20% inheritance tax on agricultural assets exceeding £2.5 million, which took effect in April, was "a mistake." This tax ended a long-standing waiver for farms, a move Blunkett attributes to "Treasury economic orthodoxy" that fails to understand the nature of family farms being passed down through generations. He spoke at the launch of a campaign by the Countryside Alliance advocating for policies that do not alienate rural communities.
The government defended the tax, stating it is "determined to rebuild trust" with farmers and that most estates are not impacted. The policy, initially proposed at a higher rate and lower threshold, was eventually modified after facing backlash. However, some rural advocates argue it still affects family farms.
Blunkett expressed confidence that Burnham would heed the concerns, noting the increasing number of Labour MPs representing rural or semi-rural constituencies. He suggested that the countryside aligns with Burnham's focus on local areas and that urban and rural regions are interdependent.
Additionally, Blunkett criticized the government's planned ban on trail hunting, calling it "doing no harm." Trail hunting, introduced as an alternative to fox hunting after the 2004 Hunting Act, involves following an animal-scented trail. The government maintains that there is strong support for the ban due to risks to wildlife and pets.
Lord Cameron also voiced strong opposition to the farm inheritance tax, labeling it "stupid," and the trail hunting ban, calling it "completely wrong." He further cautioned that continued crackdowns on rural activities, such as game shooting, could negatively impact rural life, including local services and pubs. Cameron was recently seen filming for "Clarkson's Farm," a show that highlights farming challenges.
The Countryside Alliance's campaign aims to encourage Burnham to collaborate with rural communities on issues including farming, horseracing, and greyhound racing. Farmers have previously held protests, including tractor demonstrations in London and other areas.
The government has indicated a commitment to engaging with farmers and rural communities to foster a stronger future for British farming and rural development.