Tax change 'is existential threat to farmers'

Conservative former Copeland mayor Mike Starkie criticised last month's budget

A former mayor has said changes to inheritance tax pose an "existential threat" to farmers and the rural way of life.

Conservative former Copeland Mayor Mike Starkie criticised the Labour government’s changes to inheritance tax laid out in last month's budget.

Chancellor Rachel Reeves announced the end to some exemptions that would see inherited farms worth more than £1m taxed at 20% - half the usual rate of inheritance tax.

Defending the policy, Liz Twist, Labour MP for Blaydon and Consett, said the poor state of public finances forced the government's hand.

On Tuesday, farmers from across north-east England and Cumbria will join thousands travelling to London to lobby against the changes.

• How many farms will be affected by Budget tax rises?

• What is inheritance tax, who pays it and how are the rules changing?

Speaking on BBC Politics North, Starkie defended farmers and said the changes presented an "existential threat to farmers, to the rural way of life."

"Cumbria is disproportionately affected because of the huge rural landscapes," he said.

Mr Starkie said farmers may not invest in the future of their businesses if they thought they would have to sell off their farms to pay off inheritance tax bills.

Liz Twist, the Labour MP for Blaydon and Consett, pointed to a "£22bn hole in the budget"

Twist said farmers were "hugely important" to the Labour Party and acknowledged that they had had a "difficult time" over the past 14 years.

"The fact is that we have £22bn hole in the budget and so we've had to look at things that we can do and clearly this is one of the measures that has been looked at," Twist said.

Darlington Green Party councillor Matthew Snedker said farmers had seen their support cut

Speaking on behalf of the Green party, Darlington Council's Matthew Snedker criticised both the government and the opposition.

"I can't stress enough the anger and fear from family farmers," Snedker said.

"Remember they've borne the brunt of Brexit, they've seen their support cut, their costs go up, their access to markets cut, and the Green Party policy of rejoining the common market would bring support to them and lift their incomes up."

Politics North is on BBC One in the North East and Cumbria at 10:00 BST on Sunday. Episodes are available after transmission on the iPlayer.