‘Labour becoming the cruel party’ over tax changes, warns farmer baroness

Labour is “almost becoming the cruel party” over inheritance tax reforms impacting farmers, one of its peers has claimed.

Baroness Mallalieu, who joined farmers as they marched on Westminster on Tuesday, claimed the new Government was losing the trust of countryside communities.

At the Budget, Rachel Reeves announced reforms to inheritance tax relief which mean farmers will have to pay a 20% rate on land and property they inherit worth more than £1 million.

Ministers insist the changes will affect only the wealthiest quarter of landowners, but the National Farmers Union and other groups warn the impact will be more widespread and could affect British food production.

We are almost becoming the cruel party

The president of the Countryside Alliance, Lady Mallalieu told The Daily Telegraph newspaper: “It has taken the Labour Party 14 years to win back the trust of the countryside after that last attack on hunting.

“Since the last election we have more than 100 MPs in rural seats, but here we are making the same mistakes again.”

In a phrase which echoes a description Theresa May once used of the Tories as the “nasty party”, Lady Mallalieu added: “We are almost becoming the cruel party.”

Sir Tony Blair’s first Labour ministry is remembered among many in rural communities for the fox hunting ban, a measure the Countryside Alliance opposed.

At the time the issue roused anger among farmers and landowners in a similar manner to the current strength of feeling about the inheritance tax reforms.

Lady Mallalieu said the tax changes are “not just threatening farmers in their pockets”.

“They are threatening their family and their home,” she said.

Speaking to the Telegraph, she said: “On the march, I heard there have been four suicides already among farmers and, for me, the most unpleasant side – and I don’t think the Government thought about this – is that they are saying to elderly farmers, make yourself die before March 2026 to save your family from losing their home.”

On Friday, Sir Keir Starmer insisted his Government was supportive of farmers, as well as of pensioners, as he faced questions about the tax reforms and the decision to limit winter fuel payments to only the poorest pensioners.

The Prime Minister told BBC Bristol: “We’re for working people who need to be better off, who’ve really struggled over recent years.

“We’re for everybody who wants to and needs to rely on the NHS, which is on its knees, and we’ve got to pick it up and we will and get those waiting lists down.

“We’re for the people who absolutely need somewhere safe and secure to live that they can afford.

“All of that has to be paid for.

“We are also for the farmers and the pensioners.”

The Prime Minister also reiterated his position that the vast majority of farms will be “completely unaffected” by changes to agricultural inheritance tax.