Keir Starmer has reinforced his governments intention to push ahead with the changes to inheritance tax (IHT) stating the “vast majority” of farmers will be unaffected.

He reiterated that in most cases the changes would not have an impact if the land handed down was worth under £3m.

The PM dismissed claims that the new Labour government had turned its back on the farming community, highlighting the investment pledged towards the agricultural budget and the efforts being made to compensate those affected by flood damages.

MORE NEWS | Pupils give it some welly is show of support for farmers

MORE NEWS | Farmers unite in London, bringing vital food donations

Mr Starmer said: “I think it is very important that we support farmers. That’s why we’ve put £5bn in the budget for the next two years into farming.

That is the single biggest sum of money in a budget over a two-year period that has ever been put down in relation to farming.”

This response failed to address the ‘de-ring fencing’ of the Scottish agricultural budget, which now rests solely in the remit of the Scottish Government.

Speaking on GB News, Mr Starmer stated he shares the concerns of the farming community, citing his own upbringing in a rural community, but pledged that his government was working to eliminate a tax-loophole and simultaneously safeguard small family farms.

However, the figures regarding the extent to which this change will impact the farming sector remain unclear. With industry experts arguing that the figures outlined by the treasury are false and do not account for farming businesses who claimed relief through Business Property Relief (BPR) as opposed to Agricultural Property Relief (APR).

The Country Land and Business Association (CLA) have rejected the treasury’s claims that only 500 farms would be liable to IHT, arguing that the figure would be closer to 70,000.

Going into a detailed defence of the changes Mr Starmer said: “For a typical case, which is parents with a farm they want to pass on to one of their children, by the time you’ve taken into account not only the exemption for the farm property itself, but also the exemption for spouse to spouse, then parent to child, it’s £3m before any inheritance tax will be payable.

Dan Neidle, founder of the independent Tax Policy Associates, stated online that there is no IHT to be paid on the value of a property up to £325,000, bringing the untaxed total up to £1.325m for a sole owner passing down his property. With a married farmer able to transfer to their spouse creating a tax-free package of £2.65m.

The proposed figures that may be raised because of this change again remain unclear, with the Office for Budget Responsibility warning the governments predictions are uncertain.

Farmers have been vocal in their disdain for the proposed changes, highlighting that they are ‘asset rich, cash poor’ with new figures from the CLA suggesting that paying off this new tax would all but eliminate farm profit; bringing into question the logic behind implementing such a tax.