The Conservatives said ministers had “sneaked in” to announce their decision to roll back inheritance tax for farmers, after the government revealed the move in a press release two days before Christmas.
Shadow environment secretary Victoria Atkins accused the government of trying to evade scrutiny of its latest policy reversal, under which the threshold for taxing inherited farmland will rise from a planned £1m to £2.5m.
The move was announced on Tuesday in a press release from the Department for the Environment after months of pressure from farmers, activists and some Labor MPs.
“Having this sneak out the day before Christmas Eve means that, of course, we haven’t had the opportunity to properly scrutinize this in Parliament,” Atkins told Sky News on Wednesday morning.
“It seems very strange that they just snuck out the day before Christmas Eve.
What’s more, he was Minister of Foreign Affairs [Emma Reynolds, the environment secretary] Who announced it, rather than the Chancellor. The Secretary of State just did a press clip yesterday. It’s not even off on [broadcast media] Today’s tour…explains its policy to the nation.
“So they’re kind of trying to hide it by just getting everyone distracted with Christmas preparations.”
Rachel Reeves first announced in last year’s Budget that she would tax inherited farming assets worth more than £1m at a rate of 20%, removing exemptions that had been in place since the 1990s.
However, the Chancellor has come under concerted pressure to reverse course, with farmers regularly protesting at Westminster and Labor MPs from rural areas warning of the impact on their constituencies.
Dozens of Labor MPs were reportedly preparing to rebel against the government and support an amendment to the bill that would have imposed the tax, which is due to be debated in Parliament next month.
Keir Starmer She acknowledged the concerns last week That some farmers were contemplating suicide due to these changes also stood out Recent report To the government by former National Farmers Union (NFU) president Minnette Butters.
Reynolds said on Tuesday that the government would raise the threshold to which the tax applies from £1 million to £2.5 million.
Treasury figures show this will reduce the amount of money raised from £430m to £300m. Officials have not said where the extra money will come from, although the £130m conceded is a small part of the £22bn surplus Reeves enjoys against her own financial rules.
National Football League President Tom Bradshaw said on Tuesday that the announcement was a “huge relief to many.”
Atkins did not clarify whether the Conservatives would remove the tax completely if they win power in the next election.
“We need clarity from the government on how this will be implemented. There will still be farms where – because of the investment and care of the land by their parents, grandparents, grandmothers and great-grandmothers over generations – they simply will not be able to pay that tax bill, even with this welcome shift by the government.”