Farm tax a mistake, Lord Blunkett says in call for Burnham 'rural reset'

Lord Blunkett, a veteran Labour figure and longtime mentor to Andy Burnham, has criticized the recently introduced inheritance tax on farms, describing it as “a mistake.” This tax, which came into effect in April, imposes a 20% levy on inherited agricultural assets valued above £2.5 million, ending a long-standing exemption for farms that had been in place since the 1980s. Lord Blunkett attributed the policy to “Treasury economic orthodoxy” and urged Burnham, now prime minister, to pay closer attention to rural communities during his leadership.

Speaking at an event organized by the Countryside Alliance in central London, Lord Blunkett launched their campaign for a “rural reset,” aimed at reversing policies that the group claims treat rural residents unfairly. The government, for its part, insists it remains committed to rebuilding trust with the farming community and emphasizes that most estates will not be affected by the tax. Originally, the tax proposal had targeted agricultural inheritances over £1 million, but following significant backlash, the threshold was later raised to £2.5 million—a move some rural campaigners still argue is damaging to typical family-owned farms, calling for the tax to be abolished altogether.

Although Burnham has not indicated any plans to reverse the tax, Lord Blunkett expressed confidence that his former protégé, whom he employed as his parliamentary private secretary in 2004, will hear the concerns “very clearly and act accordingly.” He reflected on how the tax “touched a nerve” amid growing rural representation in Parliament, with around 135 Labour MPs now representing rural or semi-rural areas. Lord Blunkett emphasized the importance of recognizing the unique nature of family farms, which depend on generational inheritance to survive, and critiqued the urban-centric economic views that often dominate government policy. He also tied the countryside’s interests to Burnham’s declared focus on local communities, remarking that urban and rural areas are mutually dependent.

In addition to his comments on inheritance tax, Lord Blunkett condemned the government’s planned ban on trail hunting, calling it “a mistake” because the activity “is doing no harm.” Trail hunting, which arose as an alternative to traditional fox hunting under the 2004 Hunting Act, involves hounds following an animal-scented rag rather than live quarry. While the Labour Party has pledged to ban this practice in their 2024 election manifesto, the government maintains that there is widespread backing for the ban to protect wildlife and pets. Former Prime Minister Lord Cameron also condemned both the inheritance tax and the trail hunting ban at a Countryside Alliance event, warning that further restrictions on rural activities risk undermining vital aspects of village life, including pubs and local services. Furthermore, the Alliance insists their campaign is non-political, seeking to foster dialogue between Burnham and rural stakeholders on farming, horseracing, greyhound racing, and other countryside concerns. Over the last year, farmers have staged tractor protests across various regions, reflecting the mounting tensions surrounding these policies. The government has described its current efforts as “the start of a new conversation” aimed at supporting British farming and promoting economic growth in rural areas

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