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Reeves’ tractor tax plan in disarray as supermarket giants hit out at chancellor
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Rachel Reeves plans for a “family farm tax” have suffered a major blow after the supermarket giant Tesco called on her to halt the policy.
In a highly unusual move, the retailer backed farmers in their fight against the inheritance tax raid, with its chief commercial officer warning the “UK’s future food security is at stake”.
In a double blow to the chancellor as she seeks to woo business investment to the UK at the World Economic Forum in Davos another huge supermarket, Lidl, also called on her to pause the policy.
Their calls mean Tesco, British agriculture’s biggest customer, and Lidl have now joined other major supermarket chains Sainsbury’s, Asda and Morrisons in backing farmers.
Tesco’s chief commercial officer Ashwin Prasad said that ensuring farms remained economically sustainable was “essential” not just to food security but so customers “can continue to get the great quality food they want, at a price they can afford”.
The calls will increase pressure on Ms Reeves to U-turn on her controversial tax raid. The chancellor has faced a furious backlash to her Budget decision to extend inheritance tax to family farms, which critics warn could sound the death knell for family farms in England.
The changes mean that farms valued at £1m or more would be liable for 20 per cent inheritance tax.
The Treasury says that, with tax allowances, in reality only farms worth £3m would be affected, just 28 per cent of family farms. But official Defra figures appear to suggest as many as 66 per cent could be hit.
Thousands of farmers brought Westminster to a standstill in November when they descended on the capital to voice their opposition to the change.
Mr Prasad said: “One message is loud and clear: farmers desperately need more certainty. After years of policy change, it has been harder than ever for them to plan ahead or to invest in their farms.
“One current area of uncertainty is the proposed change to inheritance tax relief. With many smaller farms relying on APR (agricultural property relief) and BPR (business property relief) we fully understand their concerns.
“It’s why we’ll be supporting the NFU’s calls for a pause in the implementation of the policy, while a full consultation is carried out.”
Lidl said in a statement: “Providing security and long-term investment for British agriculture is key to helping ensure that farmers can continue to produce affordable and increasingly sustainable food for generations to come.
“We are concerned that the recent changes to the inheritance tax regime will impact farmer and grower confidence and hold back the investment needed to build a resilient, productive and sustainable British food system.
“We, therefore, support the call by the farming community to pause the implementation of those changes and to consult with industry to achieve a mutually beneficial outcome. We will be raising our concerns with Government at any opportunity we get.”
On Friday, Asda also offered their public support for farmers by backing the NFU’s demand for a “pause” in implementing the changes. And earlier this month, Morrisons told farmers “we’re with you” in the fight.
Environment Secretary Steve Reed recently offered an apology for having “shocked” farmers with the Budget measures.
But he, and other cabinet minister, blame the tax raid on a £22billion ‘black hole’ in the public finances left by the previous Tory government.
Separately, a new report by the Office for Budget Responsibility (OBR) casts doubt on how much money the raid will raise. The expected revenue, £500m a year by 2029, has been given a ‘high’ uncertainty rating by the spending watchdog. Shadow environment secretary Victoria Atkins MP said ministers “still can’t tell us how many businesses will be affected.
“They have chosen to destroy British family farming for little return. The OBR is clear that it will be near impossible for older farmers to restructure their affairs quickly in response to this vindictive tax.
“Farmers up and down the country are worried sick about their families’ futures and Labour’s tax bills.”
Liberal Democrat rural affairs spokesperson Tim Farron said the report “confirms that the government’s misguided family farm tax is mired in problems and will penalise British farmers for practically no benefit.
“It is deeply concerning that older farmers will be hit hardest from this tax, with the rug pulled from under them before they can change their plans. And with tax revenue expected to be highly uncertain and unstable for two decades, the Chancellor’s excuses simply don’t stack up. The government must do the right thing and scrap the family farm tax before it’s too late.”
After his transformative impact on the Test side, McCullum’s arrival as white-ball coach has been highly anticipiated, with England hoping he can revitalise a team that has lost its way in giving up two world titles in the last two years.
The attacking approach instilled by the New Zealander has drawn criticism at times. This, though, was a result of England’s oldest weakness, rather than any tactical misstep.
While left-arm seamer Arshdeep struck twice early on, it was spin that brought their collapse from 65-2 in the eighth over.
Only Buttler, who was at his classy rather than inventive best in striking eight fours and two sixes, seemed able to pick Chakravarthy’s mystery.
Brook and Livingstone were bowled by his googlies and afterwards the only boundaries were hit by England’s skipper until one by Adil Rashid in the 19th over.
Bethell and Atkinson, in particular, chewed up deliveries and were unable to give Buttler the strike. Overton was caught and Atkinson stumped off left-arm spinner Axar, who backed up Chakravarthy with 2-22.
The ground fielding and catching was also high-class by a youthful India, without many of their big names from last year’s World Cup win.
Mark Wood was run out off the last ball of the innings and England were never going to have enough on a decent pitch.
US historian Victor Davis Hanson has described Joe Biden’s departure from the presidency as that of a “solitary figure” with no defenders remaining, even within his own party.
Speaking to GBN America, Hanson painted a stark picture of Biden’s final moments in office, contrasting his exit with that of his successor Donald Trump.
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The family of a schoolboy killed on his walk home from school have paid tribute to the “funny, sweet” boy who had “not one aggressive bone in his body”.
Leo Ross, 12, suffered a fatal knife wound to his stomach at Trittiford Mil Park near Scribers Lane, Hall Green, shortly after 3pm on Tuesday, West Midlands Police said.
A 14-year-old boy has been arrested on suspicion of his murder.
Leo was taken to hospital but died from his injuries, according to the force, which described it as a “chaotic and traumatic” scene.
In a written statement issued to BBC News, a member of the victim’s family described Leo as “the most beautiful, kind child”, and “the nicest kid you would meet”.
The family member added that the boy was “funny, sweet and had not one aggressive bone in his body”, and had been walking a ten-minute route home.
Leo was a pupil at Christ Church C of E Secondary Academy. Executive headteacher Diane Henson described his death as a tragedy.
She said: “Leo was a lively and happy young man. He had many very good friends who he absolutely adored, and they adored him. He was just a lovely and bright member of the school community.
“We’re supporting the children at school and are opening a book of condolence with the family’s permission. Are thoughts are with Leo’s family and all his friends today.”
The mother of a boy in the same form as the Leo visited a gate to the country park, near the River Cole, to place flowers at the police cordon.
She said: “He was a gentle, really kind-hearted boy that was never horrible to anyone. That was my son’s words. He said he didn’t have a bad bone in his body.”
She said of the stabbing and the victim’s age: “It’s shocking – it’s a horrible world. I worry for my son. He’s really upset and distressed and he’s scared. Him and his friends used to hang around here.”
“It’s affected all of them,” she added. “It’s just horrible and it’s hard to believe. My son said the boy was proper gentle, just walking home.”
The 14-year-old suspect is also accused of an assault on an 80-year-old woman in the same area on Sunday, the Chief Superintendent Richard North said.
He added: “This is an appalling and senseless attack.
“We are doing everything we can to support the loved ones of the young boy who lost his life in such an appalling way, but we know that nothing we say or do will diminish their agony.
“Parents around the country will hear this news and be unable to comprehend the pain they must be feeling.
“Our hearts go out to the young boy’s family today. We will be carrying out reassurance patrols locally and if any of the community have any information or concerns, we would urge them to come forward.
Dozens of school friends of the 12-year-old victim visited the entrance to Birmingham’s The Shire Country Park to lay floral and other tributes in his memory.
The friends, whose messages named the victim as Leo Ross, also placed candles on the ground spelling out his first name.
A hand-written note attached to one tribute read: “RIP Leo Ross. We will miss you loads. Our lives won’t be the same without you.
“You will always be the kindest. Fly High Leo. You never deserved this ever.”
Another tribute read: “Fly high Leo. You will be deeply missed. We will keep you in our thoughts and prayers.”
West Midlands PoliceTributes have been paid to a 12-year-old boy stabbed to death in Birmingham who has been named as Leo Ross by police.
The West Midlands force said he was stabbed in the stomach and found near Scribers Lane in Hall Green at about 15:40 GMT on Tuesday and died in hospital later.
Leo, a pupil at Christ Church C of E Secondary Academy, was a “lively and happy young man” and “had many very good friends”, executive head teacher Diane Henson said.
A 14-year-old boy was earlier arrested on suspicion of murder. Police said the teenager had also been arrested in connection with an unrelated assault on a woman in her 80s on 19 January.
Ms Henson said Leo was “just a lovely and bright member of the school community”.
“We’re supporting the children at school and are opening a book of condolence with the family’s permission,” she added.
The executive head teacher stated the boy had many good friends “who he absolutely adored and they adored him”.
The family said he had been walking a 10-minute route home when the attack happened and described him as “funny, sweet and had not one aggressive bone in his body”.
A teenage boy who killed a bus driver in an attack that saw him headbutting and “raining punches” on to his victim has lost an appeal against his sentence.
Politics
SAS veteran blasts ‘imbecilic’ Rachel Reeves as Labour target war heroes with inheritance tax raid: ‘I am absolutely fuming!’
An SAS veteran has hit out at Labour’s decision to hit grieving families of military workers with inheritance tax from April 2027.
The money given to families of deceased Armed Forces members, called death in service payments, may be subject to a hefty cut after Labour MPs voted in favour of a raid.
The lump sum of money will be subject to death duties from 2027 for children or partners of servicemen and women who are not married.
Death in service payments are normally a one-off figure issued to named beneficiaries of a military worker who dies while on duty.
Matthew Hellyer erupted into a furious rant on GB News
GB NEWS
Speaking on GB News, Matthew Hellyer erupted into a furious rant as he spoke to Martin Daubney.
“I am absolutely fuming. As a grieving father, my son died 18 months ago”, he said.
LATEST DEVELOPMENTS
Rachel Reeves backed the controversial tax
PA
“I know the pain that these people are going through now. This imbecilic Government are now taxing the very people that have given us our freedom.
“They are ruining us. This applies to the children and widows of soldiers that have been killed on the battlefield.
“They get a final payment. They get the money, a death in service payment. This has always been seen as tax free. Something to lift the spirits and give the soldiers’ families something to look forward to because they don’t have a husband or wife to support them anymore.
“They need this money more than anything. The pain they are going through is immense.
Hellyer joined Martin Daubney on GB News
GB NEWS
“Keir Starmer and Rachel Reeves have no compassion. They’re killing our pensioners, ridiculing our pensioners and persecuting our soldiers.
“Where does it end?”
He added: “This Government is waging war on our military. We have an attorney general that supported the IRA and is refusing to stand down.
“They are after our military, lock stock and two smoking barrels. They’re never giving up. It’s relentless and we’re getting beaten. We have to stand up for our rights.”
The payments will now go into probate if not left to a spouse or civil partner, potentially reducing the compensation by up to 40 per cent in inheritance tax.
Major General Neil Marshall, chief executive of the Forces Pension Society, has written to HMRC urging them to reverse the decision.
In his letter, he warned: “Given the high-risk nature of military service… a policy that discriminates against those who are not married or in a civil partnership poses a serious threat to morale, team cohesion and ultimately operational effectiveness.”
The Treasury has confirmed existing exemptions will continue for active service deaths.
“If a member of the Armed Forces dies from a wound inflicted, accident occurring or disease contracted on active service, they will be exempt,” a Treasury spokesman said.
Military personnel cannot avoid this tax through trusts, as the payments are part of the Armed Forces pension scheme.
Royal correspondent
ReutersThe settlement between Prince Harry and News Group Newspapers is a dramatic, high stakes, turnaround. But it’s courtroom drama without the court.
Prince Harry’s team hailed the deal that stopped the trial as a “monumental victory”, receiving an undisclosed amount of “substantial damages” and an “unequivocal apology”.
They say he’s been vindicated – but will there also, deep down, be some mixed feelings. Was this really “slaying dragons” of the tabloid press, as he’d celebrated after a previous win when he’d given evidence in court against Mirror Group Newspapers?
While on the other side of the scrapped case, NGN says the agreement “draws a line under the past” and they reject the claims that would have been made in court about a corporate cover-up.
When NGN has spent £1bn on previous claims, they might think any extra spent on staying out of court was a win for them too.
PA MediaWhy did Prince Harry strike a deal now?
It seems a change from Prince Harry being adamant that this was about “accountability”.
“The goal is accountability. It’s really that simple,” Prince Harry told a media event in New York last month, about why he was taking on the Murdoch press.
“The scale of the cover up is so large that people need to see it for themselves,” he said.
He was fully aware of the financial risks built into such civil disputes, but seemed determined to press on, not just for himself but for 1,300 claimants who he said had settled but had “no justice”.
Reuters“Accountability” was mentioned again in a statement read out on behalf of Prince Harry and his co-claimant Lord Watson.
“The time for accountability has arrived,” but it meant in terms of calling on Parliament and the police to pursue what they called the “unlawful activity now finally admitted” and “the perjury and cover ups along the way”.
There was a similar call for a follow-up when Prince Harry won against the Mirror group newspapers, but there has been no imminent sign of action.
Perhaps it shouldn’t have been a surprise that there was a deal.
There has always been immense pressure for a settlement, because the curve of civil law bends so strongly in that direction.
Even if a claimant wins a case, they could end up paying the costs of their opponents, if the damages award is less than they have been offered.
The legal costs and damages at stake in this case could have been £10m. That’s a big poker hand decision for anyone. Plus the unknown jeopardy of what might happen in the court case and what questions Harry might have faced on the witness stand. He might have had his case ruled out of time or had his claims rejected.
The psychological cards would all have been stacked towards doing a deal. Does everyone have a price? Even when they’re seen as the last man standing?
In terms of the amount of damages paid to Prince Harry, or what he might do with the money, that hasn’t been made public.
But what Prince Harry’s team have seized upon is the skyscraper scale of the apology – seeing it as a “collapse” of the NGN’s denials.
They might argue that even if he had fought the court battle and won, there wouldn’t be any more to be gained.
This has always been a very personal battle for Prince Harry, the battle with the tabloids touching on his childhood as well as his adult life. So it’s significant that the apology includes an admission of a “serious intrusion” into the “private life of Diana, Princess of Wales”.
That could mean more to him than any financial deal.
EPAPrince Harry’s team also repeated the claim that “the Sun, the flagship title for Rupert Murdoch’s UK media empire, has indeed engaged in illegal practices”.
This references the apology’s mention of “unlawful activities carried out by private investigators working for the Sun”.
NGN’s statement emphasises that this applies to the activities of external private investigators, “not by journalists” on the Sun.
But it narrows some of the fastidious distancing that there’s between what had happened at the shut down News of the World and the Sun.
While the statement from Prince Harry’s team lambasts those presiding over a “toxic culture” in parts of the media, past and present, and repeats its claim about a corporate cover-up, these are attack lines from a court case that will now never happen.
NGN rejects the claims of a cover-up and the destruction of evidence. But the overall tone of the response is relief at the end of arguments over old battles, and that this now draws a line under all these disputes over front pages from decades ago.
“Indeed the judge made it clear in remarks in court at the end of the hearing that these cases are likely to be the last liable to go to trial,” said NGN.
The bombshell case that was going to see Prince Harry giving evidence against his tabloid tormentors is over before it began. Who, in the end, will be more pleased about that?
The first Islamist extremist to be found with plans for 3D-printed firearms has been jailed for seven years after using a far-right internet channel to download the instructions.
Elon Musk has poured cold water on Donald Trump‘s half-a-trillion-dollar Artificial Intelligence initiative – marking a potential first rift between the pair since Trump took office.
The President declared on Tuesday that several tech giants including Oracle, MGX and OpenAI would be pledging $500billion (£406billion) to fund the construction of data centres in the US over his four-year term.
He said that the project, called Stargate, would be “the largest AI infrastructure project by far in history”, adding: “It’s big money and high-quality people.”
Trump said the mega funding drive would be “a resounding declaration of confidence in America’s potential”, but now, tech tycoon Musk – himself a major player in AI – has warned that the investment may not be all it seems.
Elon Musk has poured cold water on Donald Trump’s half-a-trillion-dollar Artificial Intelligence initiative Stargate
REUTERS
An OpenAI press release had talked up its funding for Stargate, including an initial investment of $100billion.
But Musk prodded: “They don’t actually have the money.”
And in a swipe at Japanese partner investors SoftBank, he said he “has it on good authority” that the firm “has well under $10B secured”.
Musk has endured a long-standing feud with Sam Altman, with whom he jointly founded OpenAI, the firm behind Artificial Intelligence behemoth ChatGPT.
LATEST ON DONALD TRUMP‘S SECOND TERM:
Trump has said the mega funding drive would be ‘a resounding declaration of confidence in America’s potential’
REUTERS
Musk, who resigned from OpenAI in 2018, has since labelled his former colleague Altman “Swindly Sam”.
Meanwhile, Altman has called Musk a “bully” in response.
In the face of the X owner’s condemnation, construction on one of Stargate data centres has already begun in Texas, according to Oracle Chairman Larry Ellison, who launched the project in the White House to alongside Trump, Altman and SoftBank CEO Masayoshi Son.
“We wouldn’t be able to do this without you, Mr President,” Altman said.
Though Musk and Trump appear to be at loggerheads over AI, the Tesla owner has been vocal in his support for the President on cracking down on DEI
REUTERS
Though Musk and Trump appear to be at loggerheads over AI, the Tesla owner has been vocal in his support for the President on cracking down on Diversity, Equity and Inclusion (DEI) initiatives.
Reacting to the news that Trump had signed an executive order repealing Lyndon Johnson’s establishment of affirmative action, Musk said simply: “Massive”.
Musk, who now leads the new administration’s drive to cut costs across the federal government, took a swipe at DEI initiatives on social media in a reply to the news of Coast Guard chief Linda Fagan’s termination.
“Undermining the US military and border security to spend money on racist/sexist DEI nonsense is no longer acceptable,” Musk said.
Rep. Mike Lawler (R-N.Y.), a leader in the effort to lift the limit on a state and local tax deduction some key House Republicans are demanding, said at a POLITICO Playbook event on Wednesday morning that he will be meeting with President Donald Trump on Wednesday.
New York, New Jersey and California Republicans made a pilgrimage to Mar-a-Lago recently to reiterate their demands to lift the so-called SALT cap, which limits the deduction to $10,000, in negotiations over a large tax bill. The lawmakers say the cap is harming constituents in their politically competitive, high-tax districts.
Their votes will be crucial to passing a major tax bill GOP lawmakers are assembling.
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