Rachel Reeves slammed ahead of Budget as Labour ‘prey on the elderly’ | Politics | News
Rachel Reeves has been accused of “preying on the elderly and sick” ahead of next month’s November Budget. Britons are bracing for tax rises during the Chancellor’s expected annual financial statement, as Prime Minister Keir Starmer refused to “rule out” increases during PMQs on Wednesday. One of the sectors currently preparing for increased taxes is agriculture, and agricultural lands are no longer exempt from inheritance tax.
Farm Manager Tim Hayward has slammed the Chancellor for “shattering” decades of tax planning on his farm, as agricultural assets over £1 million will have to pay 20% tax from April 2026. Farmers are being forced to sell farmland to avoid an eye-watering tax bill as Labor scrambles to plug a multimillion-pound hole in the public finances ahead of the budget.
“It has basically destroyed 40 years of stable tax planning and is simply not affordable,” Mr Hayward said. Great Britain News.
“We will have to put aside all our profits for the next 20 years just to pay inheritance tax and frankly no business can operate unprofitable for 20 years.”
He added that he hoped there would be “some movement in the Annual Percentage Rate and Commercial Property Relief” during the November 26 announcement.
He continued: “They are currently preying on the elderly and the terminally ill and it is not fair at all.
“But everything we’ve been working on hangs in the balance and we want to make some changes to that.”
“We also want to see some certainty around funding for the Sustainable Agriculture Incentive. That would be the next thing we want.”
Apart from farming, there are also concerns that Ms Reeves may target a lump sum of tax-free cash from pensions in her budget; This causes savers to rush to withdraw money.
In response to the increased number of cash withdrawals, the Treasury said: “In relation to the proposed ‘pension tax lock’, the Government does not comment on proposed tax changes or tax-related speculation ahead of the Budgets.”
Investment platform AJ Bell called on the Chancellor to publicly oppose the changes to prevent people from making rash decisions that could damage their retirement finances.
Mark Cunningham, a partner at accountancy firm Blick Rothenberg, commented: “Speculation is rising again as the next Budget approaches. If no changes are planned, it could be seen as irresponsible for the Chancellor not to confirm this in advance, given previous history and the impact on those approaching retirement.”
