Why the UK's farmers are angry with Keir Starmer

Transcript

00:00Farmers are not happy with Keir Starmer.

00:02The PM's budget has sparked outrage

00:04within farming and rural communities,

00:06even leading to mass protests.

00:08So what's been going on?

00:10Rachel Reeves announced that inheritance tax relief

00:12for farmers, meaning they can pass on their land

00:15and property tax-free to their families,

00:16will be undergoing some changes.

00:18At the budget, the chancellor announced

00:20the 100% relief for family farms would be limited

00:22to only the first one million pounds

00:24of combined agricultural and business property.

00:27Anything above that and landowners will have to pay

00:29a 20% tax rate.

00:30The standard rate of inheritance tax is 40%.

00:33Labour's policy is aimed at wealthy landowners,

00:35but farmers and unions argue it risks harming

00:38family-owned farms who will be forced to sell up.

00:41The National Farming Union president said

00:43that just because a farm is a valuable asset,

00:45it doesn't mean that those who work it are wealthy.

00:48The union also warned that higher costs for farmers

00:50could lead to a rise in food prices for consumers.

00:53However, despite the outcry,

00:55the government has refused to back down

00:57and insisted the vast majority of farmers

00:59won't be affected by the changes.

01:01Starmer said that he is absolutely confident

01:03that the vast majority will be exempt.

01:05Apparently, only around a quarter of farmers

01:07will have to pay.