WIN FOR FARMERS Labour waters down farmers inheritance tax raid after months of furious protests led by Jeremy Clarkson

SIR Keir Starmer today watered down his hated inheritance tax raid on farmers following months of furious protests.

The PM quietly announced that the threshold at which the levy applies will rise from £1m to £2.5m.

It will enable spouses to pass on £5m worth of agricultural assets between them before being hit by inheritance tax.

The partial U-turn follows 14 months of enraged protests, led by Clarkson’s Farm star, Jeremy Clarkson.

Furious agricultural workers took to Westminster in their thousands brandishing signs including “Keir Starmer farmer harmer” and “no farmers, no food, no future”.

The move will see the number of estates impacted by the tax fall from 375 to 185.

The concession will cost the Treasury £130m.

Slipping the news out before Christmas, Environment Secretary Emma Reynolds said: “Farmers are at the heart of our food security and environmental stewardship, and I am determined to work with them to secure a profitable future for British farming.

“We have listened closely to farmers across the country and we are making changes today to protect more ordinary family farms.

“It’s only right that larger estates contribute more, while we back the farms and trading businesses that are the backbone of Britain’s rural communities.”

Labour MPs representing rural constituencies have expressed fury at the tax raid since it was announced at last year’s Budget by Chancellor Rachel Reeves.

Despite lobbying the PM to change course for more than a year, he continued to defend the move as recently last week.

Just this month the government suspended an MP, Markus Campbell Savours, for rebelling on the farming inheritance tax.

The farm tax change is the latest in an ever-growing line of U-turns by the PM.

Public fury combined with pressure from backbenchers has already seen Sir Keir change his mind on winter fuel payments, welfare reform, workers’ rights and a national inquiry into grooming gangs.

Since being elected, the PM has also changed his position on what defines a woman and slashing the international aid budget.

But most famously voters have expressed fury at U-turns on key promises not to hike VAT, National Insurance or income tax.

The NI rise for employers announced at last year’s Budget, coupled with the freezing of income tax thresholds revealed last month are key beaches of Labour’s manifesto promises to the public.

Labour MPs are now hopeful they can also squeeze further concessions from the government to ease crippling taxes on pubs.

Landlords have warned that current business rates are putting their boozers on the brink.

A Labour MP said: “Farms – sorted. Pub – next.”

Responding to the watered down inheritance tax raid on farmers, Reform UK Deputy Leader Richard Tice said: “Labour’s tax raid on family farms has already been a disaster for the sector, plunging countless farmers into despair, with heartbreaking reports of some taking their own lives in order to save their farms for future generations.

“This cynical climbdown – whilst better than nothing – does little to address the year of anxiety that farmers have faced in planning to protect their livelihoods. Even with the raised threshold, many family farms will still face crippling bills.

“With British agriculture hanging by a thread, the government must go further and abolish this callous farms tax.”

Tory leader Kemi Badenoch said: “This is a huge U-turn by the government and a big win for the Conservative Party’s campaign against Labour’s Family Farm Tax.

“Earlier this year, I was told to drop our campaign, that there weren’t many votes in it, there weren’t many farmers, and people assumed they were wealthy.”

The Lib Dems called for Sir Keir to go further and scrap the tax altogether.

Tom Bradshaw, President of the National Farmers’ Union, said the move “will come as a huge relief to many”.

He added: “While there is still tax to pay, this will greatly reduce that tax burden for many family farms, those working people of the countryside.”

The Liberal Democrats have said the uncertainty farmers have faced over inheritance tax changes has been “utterly inexcusable” and demanded the Government scrap “this unfair tax in full”.

The party’s rural affairs spokesman, Tim Farron MP, said: “It is utterly inexcusable that family farmers have been put through over a year of uncertainty and anguish since the Government first announced these changes.

“Liberal Democrats were the first to call out and oppose the unfair family farm tax in last years Budget and we have been proud to stand alongside our farming communities to campaign against it ever since.

“This concession has been hard won, and I am so grateful to all the farmers who have fought tirelessly to achieve this.

“This is about justice and security – if we undermine British farming then we also undermine our ability to provide us with the food we need to keep us secure in an uncertain world.

“Yet many family farms will still find themselves financially crippled and barely making the minimum wage.

“We demand that the Government scraps this unfair tax in full and if they refuse to, Liberal Democrats will submit amendments in the new year to bring it down.”