Angela Rayner refuses to rule out MORE hikes to inheritance tax

Angela Rayner faced a backlash for refusing to rule out more hikes to inheritance tax today as she dismissed the outcry from farmers.

Standing in for Keir Starmer at PMQs, Ms Rayner hit out at 'scaremongering' over how many will be hit by the Budget raid. 

Despite the huge protest by desperate farmers in Westminster yesterday, the Housing Secretary insisted the 'vast majority' will be able to hand down their estates tax-free.   

But Tory frontbencher Alex Burghart - deputising for Kemi Badenoch - said the measures were another example of the government targeting groups. 'If you don't vote Labour they don't care about you,' he said. 

During the clashes, Mr Burghart mocked Ms Rayner for thinking farmers had thronged to London yesterday to 'thank the Government'.

'Let's look at the facts. A typical mid-sized 360-acre family farm in the constituency of Thirsk and Malton, they've spoken to their accountant. Their new liability because of this Government is half a million pounds, that's 12 years worth of profit,' he said.

'When this generation passes away, that farm will become totally unviable and it's one of thousands and thousands of similar farms. It's clear the Government hasn't got its facts right. 

'The Central Association for Agricultural Valuers say so, the NFU says so, they are shortly to publish a report showing that 75 per cent of all commercial farms will fall above the threshold.

'If the Government isn't going to reverse this terrible policy, will she at least commit that there will be no further increases to inheritance tax, and no further reductions to agricultural property relief or business property relief in this parliament?'

But the Deputy PM replied: 'He talks about the facts, and I absolutely stand by the figures the Government have set out, and the vast majority of estate owners will be totally unaffected.

'He wants to talk about the figures, I will be crystal clear. The vast majority of estate owners will (see) no change and pay no tax on land passed on valued at £1 million. Couples can pass on £3 million, tax-free, and those above the threshold will pay only half the normal rate and could pay it over 10 years, interest-free.'

Thousands of farmers and their supporters had descended on the capital for a mass protest against Rachel Reeves' Budget plan to limit the existing 100 per cent inheritance tax relief on farms to only the first £1million.

Former Top Gear presenter Jeremy Clarkson was among those taking part in the protest and challenged the Government to 'back down' over what he called its 'cocked up' raid.

John O'Connell, chief executive of the TaxPayers' Alliance, said: 'Rayner's refusal to rule out a further cash grab will send shivers down the spine of every taxpayer hoping to pass on a nest egg to their children.

'Inheritance tax raises little money for the Treasury but devastates grieving families and is now set to hit family farmers as well.

'The government should not only scrap the planned changes to agricultural relief, it should commit to scrapping the death duty entirely.'