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Farmers Protest Inheritance Tax Hike Amid Growing Industry Anger

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Hundreds of farmers gathered outside Downing Street in Westminster today, chanting “no farmers, no food” as Prime Minister Sir Keir Starmer faced tough questioning in the Commons over proposed changes to inheritance tax. The protest, organized by Save British Farming and Kent Fairness for Farmers, saw tractors blocking parts of Whitehall, reflecting growing discontent within the farming community over Chancellor Rachel Reeves’s inheritance tax proposals.

Under the new plans, announced in last month’s Budget, inheritance tax on agricultural assets worth over £1 million will rise to 20%. While the government insists that most farms will remain unaffected, farmers’ groups argue that the threshold is too low for many family-run farms. Around 500 farmers participated in the demonstration, following a rally of approximately 13,000 in the capital last month.

As the protest unfolded, Liberal Democrat leader Sir Ed Davey questioned Sir Keir Starmer in the Commons, urging him to reconsider the impact of the proposed changes on family farms. The Prime Minister responded by stating that the “vast majority” of farms would be unaffected, citing a £3 million threshold for an “ordinary family” farm.

However, many farmers remain unconvinced. Matt Cullen, a beef farmer and organiser with Kent Fairness for Farmers, said, “We need to show this government that we will not be pushed over. This is war, and we will win, forcing the government into a U-turn.”

Among the demonstrators was 26-year-old Claire Fifield, whose step-family runs a tenanted farm in Amersham, Buckinghamshire. She argued that the £1 million threshold was too low given the rising costs of farming: “I don’t think they’ve spoken to a single farmer, especially not a tenant farmer. They looked at Jeremy Clarkson and decided to take his money, but this punishes people who have worked these lands for generations.”

The emotional toll of the dispute was evident during a session of the Commons Environment Committee, where Tom Bradshaw, President of the National Farmers’ Union (NFU), became visibly emotional while discussing the pressure facing some farmers. He expressed concern that middle-aged farmers, fearing the loss of family farms due to the inheritance tax changes, could face severe mental health consequences. “There’s a real risk that some will take their own lives due to financial despair,” he warned.

In Prime Minister’s Questions, Conservative MP Jerome Mayhew reminded Sir Keir Starmer of his pre-election pledge to the NFU, in which he acknowledged that losing a farm is “not like losing any other business.” Sir Keir responded by emphasizing the £5 billion of support pledged to agriculture over the next two years, which includes £350 million allocated just last week.

Despite the government’s commitment to agricultural support, many farmers remain deeply concerned that the inheritance tax reforms will threaten family farms and the long-standing traditions of British agriculture.

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Chancellor Rachel Reeves Calls for Stronger Ties with China Amid Economic Struggles

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Chancellor Rachel Reeves has argued that Britain has “no choice at all” but to engage with China as she seeks to bolster economic growth against the backdrop of rising borrowing costs and volatile financial markets. Reeves, who arrived in Beijing to finalise trade and investment agreements worth £600 million over five years, is the first UK chancellor to visit China in over five years.

The trip comes as the UK faces persistent inflation and growing concerns about how quickly the Bank of England can reduce interest rates. The yield on 30-year government debt remains at a 27-year high, and the pound continues to struggle against the dollar, reminiscent of last year’s financial turmoil.

Reeves has reaffirmed her “non-negotiable” fiscal rules, underlining the importance of economic stability in restoring market confidence. The Treasury’s upcoming spending review is expected to call for efficiency savings of at least 5% across government departments, a figure that may rise further due to increased debt-servicing costs. Although Reeves has pledged not to repeat the tax hikes seen last autumn, her options remain limited due to persistent inflationary pressures.

Paul Johnson, director of the Institute for Fiscal Studies, warned that breaching the Chancellor’s borrowing limits could trigger further market instability, raising yields even higher. With economic growth subdued and tax receipts underperforming, the cost of servicing government debt is becoming a growing concern.

In a bid to counter these financial pressures, Reeves is focusing on strengthening the UK’s trade and investment ties with China. She argued that the UK’s previous reluctance to engage with Beijing put the country at a disadvantage compared to France and Germany, both of which have significantly expanded their commercial relationships with China. As the world’s second-largest economy and the UK’s fourth-largest trading partner, China plays a vital role in supporting British jobs and exports.

Agreements reached with Chinese Vice Premier He Lifeng include enhanced cooperation in sectors such as financial services, cross-border investment, climate change initiatives, and agriculture. “Choosing not to engage with China is therefore no choice at all,” Reeves said, stressing that Britain should maintain “respectful and consistent” relations with China despite ideological differences.

In the financial markets, investors have become increasingly cautious about UK assets, with inflation remaining stubbornly above the Bank of England’s target of 2%. Although markets had expected interest rate cuts this year, the likelihood of those cuts happening is now in doubt, with potential implications for the 1.8 million households facing rising mortgage costs.

Reeves’s challenge is to strengthen trade ties abroad while maintaining fiscal discipline at home. As the UK navigates these turbulent economic waters, her trip to Beijing underscores a broader strategy to stabilise markets, foster growth, and build international alliances, even in politically sensitive areas.

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UK Borrowing Costs Surge to Highest Level Since Financial Crisis Amid Inflation Fears

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Britain’s benchmark borrowing costs have surged to their highest level since the financial crisis, as inflation concerns and investor uncertainty continue to weigh heavily on the economy.

The yield on the UK’s 10-year gilt, a key indicator of public borrowing costs, climbed to 4.82% on Wednesday, surpassing the peaks seen following former Prime Minister Liz Truss’s controversial mini-budget in 2022. Meanwhile, the yield on the 30-year gilt rose to a fresh 27-year high of 5.358% on Tuesday, marking a significant spike in bond yields as prices fall. Bond yields typically rise when investor demand drops, underscoring the ongoing sell-off in government debt.

The increase in yields has also put pressure on the British pound, which weakened by 1% against the dollar, slipping to $1.23. The pound has underperformed many of its global counterparts, signalling continued skepticism in the markets regarding the UK’s fiscal sustainability.

The rise in UK borrowing costs comes as the US dollar remains strong, bolstered by expectations of corporate tax cuts and regulatory changes under the new US administration. The dollar index has risen by nearly 7% over the past year, further exacerbating the strain on the pound.

Several factors have contributed to the UK’s vulnerability to rising gilt yields, including its reliance on energy imports, which has amplified commodity price shocks. In addition, investors are seeking higher returns in private debt markets, forcing the UK government to offer higher yields on its bonds. The government’s increased borrowing in its October budget, combined with the Bank of England’s gradual interest rate cuts, has also weighed on bond prices.

Simon French, chief economist at Panmure Liberum, pointed out that the UK’s long bond yields have become increasingly detached from their US counterparts since the market turmoil following the 2022 mini-budget.

The surge in borrowing costs has significant implications for the UK government’s finances, increasing debt servicing costs and reducing the chancellor’s room for spending. Capital Economics estimates that £8.9 billion of the £9.9 billion fiscal buffer set aside by Chancellor Rachel Reeves has already been depleted. As a result, further tax hikes or public spending cuts are likely.

With rising borrowing costs, the government faces a tough decision: reduce spending or raise taxes. Although Chancellor Reeves has promised no tax increases at her spring statement in March, continued high borrowing costs may force her to reconsider, particularly if the gilt yields remain elevated.

The UK’s bond market has underperformed globally, mirroring concerns in the US and other European markets. With ongoing inflationary pressures, analysts warn that Britain’s fiscal outlook remains uncertain, and political and financial challenges may persist in the months ahead.

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McDonald’s Faces Legal Action Over Allegations of Bullying and Abuse Across UK Outlets

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Hundreds of current and former McDonald’s employees have initiated legal action against the fast-food giant, accusing the company of widespread bullying, sexual abuse, and harassment at more than 450 of its UK outlets.

The complaint, filed through law firm Leigh Day, follows a BBC investigation that uncovered troubling allegations of “unacceptable” conduct within the company, despite McDonald’s pledging last year to address such issues. Among the plaintiffs are workers as young as 19 who claim to have faced mistreatment from both managers and colleagues.

Alistair Macrow, McDonald’s UK chief executive, is set to testify before the business and trade committee of MPs. The committee is expected to question Macrow about the company’s handling of the alleged misconduct. McDonald’s, which employs 168,000 people across more than 1,400 restaurants in the UK, said it had requested more details from the BBC regarding the reported incidents in order to conduct thorough investigations but had not yet received them.

One 19-year-old claimant said he endured homophobic abuse, including being called derogatory slurs, from both managers and fellow staff. Another worker, who has a learning disability and eye condition, alleged bullying by colleagues and managers, including inappropriate touching and racist remarks. Additional claims include a young worker being pressured for sex and offensive comments about staff based on their nationality.

The Equality and Human Rights Commission (EHRC) has reported receiving approximately 300 complaints of harassment at McDonald’s outlets since the BBC investigation first aired. The EHRC has intensified its efforts, working to update its legal agreement with the company following the new allegations.

In response to the accusations, McDonald’s reiterated its commitment to safeguarding employees and outlined measures taken to address workplace misconduct. These include the introduction of a digital whistleblowing platform called Red Flags, the establishment of a dedicated investigations team, and the appointment of the company’s first head of safeguarding. McDonald’s expressed confidence that these actions are significant steps toward eliminating abusive behavior.

However, experts in employment law have raised concerns about the effectiveness of these measures, particularly for workers on zero-hours contracts, who may feel particularly vulnerable. Emma Cocker, Senior Associate in the Employment team at Lawrence Stephens Solicitors, pointed out that such workers might fear retaliation if they file complaints. “It would appear McDonald’s still has a long way to go in providing a safe working environment,” she said, adding that prolonged tolerance of such behavior would likely lead to further legal claims and grievances.

As the legal action unfolds, McDonald’s faces mounting scrutiny over its efforts to create a safer and more respectful workplace for its employees.

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