Opposition to last month’s Labour budget is gathering momentum as the impact of tax rises becomes clearer.
Sir Keir Starmer had insisted that the burden of his government’s tax rises wouldn’t fall on ‘working people’. This was always a risible line of reasoning.
For example, Sir Keir and his chancellor, Rachel Reeves, argued they were keeping this promise when they jacked up employers’ national insurance contributions but left employees’ unaltered. This is the worst sort of political logic-chopping: when it costs businesses more to keep every employee on the payroll, it is at best naïve to maintain that ‘working people’ won’t somehow be affected.
The biggest names on the high street have said as much. Retailers including Tesco, Boots and Marks and Spencer are among 79 signatories to a letter to Ms Reeves spelling out how the retail sector faces an annual £7 billion burden as a consequence of her budget.
Retailers won’t be able to absorb these significant cost increases over such a short timescale: “The effect will be to increase inflation, slow pay growth, cause shop closures and reduce jobs, especially at the entry level.”
The hospitality industry has already issued a similar warning about the policy, which will have a disproportionately negative effect on the private sector compared to the public.
Read more: Keir Starmer: Vast majority of farmers will not be hit by inheritance tax change
While the government holds firm that its plans will restore economic stability and allow businesses to thrive - despite serious business leaders offering evidence to the contrary - another significant group of working people brought their opposition to the streets of London yesterday.
Farmers are angry over changes to inheritance tax rules which they say will inevitably lead to the break-up of the family farm businesses
Farmers are angry over changes to inheritance tax rules which they say will inevitably lead to the break-up of family farm businesses. Farms have been exempt from inheritance tax but from April 2026, they will be subject to a 20% levy on assets above £1 million.
This is an especially emotive issue in Northern Ireland. The vast majority of farmers are in the category of being asset rich but cash poor, with low wages and long hours the norm.
Read more: Newton Emerson: Northern Ireland’s family farms need a balanced response to inheritance tax change after Labour’s Budget, not Stormont alarmism
The value of land, machinery, livestock and other farm property can easily exceed £1m but these family businesses simply will not have the money on hand to meet tax demands when the farm-owner dies.
Many of those inheriting these farms will feel that the only option is to sell a portion of land to meet the bill, even when it has been in the family for generations and built up over decades.
Underlining the strength of feeling, thousands of farmers attended a rally at the Maze on Monday night to protest against Labour’s reforms.
Farmers and their families regard this as an existential crisis. Labour needs to rethink.
