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Farmers Rally Against Government’s Inheritance Tax Reforms, Calling It a ‘Betrayal’
Thousands of farmers gathered in Westminster to protest the government’s proposed inheritance tax reforms, which they argue will jeopardize family-owned farms and threaten their future. The rally, organized by the National Farmers’ Union (NFU), was held at Church House, where attendees expressed their anger over the government’s failure to consult with the farming community before announcing the policy changes.
Tom Bradshaw, president of the NFU, received a standing ovation from the 600 farmers present as he condemned the proposed reforms as “the straw which broke the camel’s back.” Bradshaw criticized the government for pushing forward with the policy without consulting the farming sector, calling it a betrayal. “To launch a policy this destructive without talking to anyone in farming beggars belief,” he said. He also highlighted the severe inflation and difficult weather conditions that farmers have faced over the past 18 months, emphasizing that the sector had already given all it could. “It’s wrong on every level and, just as bad, it won’t achieve what the Treasury wants to achieve,” he added.
The government’s inheritance tax reforms are aimed at raising £520 million annually by 2029, targeting wealthy individuals who invest in large estates to reduce their tax liabilities. However, Bradshaw warned that the reforms would have unintended consequences. He argued that they could incentivize people to withdraw money from pensions to invest in agricultural land, potentially undermining the policy’s intended goal.
In an emotional address, Bradshaw spoke of the “unacceptable human impact” on elderly farmers, many of whom risk losing their life’s work under the proposed changes. “We know that any tax revenue raised will be taken from our children and raised from those who die in tragic circumstances or within the next seven years,” he said.
A key point of contention is the government’s seven-year gifting rule, which exempts gifts from inheritance tax if the giver survives for seven years after the transfer. Farmers argue that this rule would not apply to them, as many rely on pensions from the farm after passing it to the next generation. Additionally, if farmers continue living on the land, they would need to pay rent to avoid inheritance tax charges.
Farming leaders have accused the Treasury of working with flawed data, citing discrepancies between Agricultural Property Relief (APR) claims and Business Property Relief (BPR) claims, which are vital for machinery and livestock. The NFU insists that Treasury officials have overlooked the full scope of the tax reliefs that farmers rely on.
The rally’s charged atmosphere was underscored by a direct message to the government: “Government needs to halt this policy. The policy is broken and based on the wrong evidence.” Farmers also expressed their frustration with Labour, which, while in opposition, had promised not to alter inheritance tax. Sir Keir Starmer had assured farmers at the NFU conference in 2023 that his party would provide “certainty” for the sector.
As tensions mount, the farming community remains steadfast in its demand for the government to reconsider the inheritance tax reforms, warning of long-term damage to family-owned farms across the UK.
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Volkswagen Warns of Economic Fallout from Proposed US Tariffs on Mexican Imports
Volkswagen has issued a warning about the potential economic consequences of the US administration’s proposed tariffs on Mexican vehicle imports. The automaker cautioned that such measures could negatively impact American consumers and disrupt the global automotive industry.
The warning follows statements from President Donald Trump, who indicated plans to impose tariffs of up to 25% on vehicles from Mexico and Canada by February 1. The proposed move is part of an effort to address concerns over migration.
Volkswagen, which operates a major manufacturing plant in Puebla, Mexico, expressed its opposition to the potential tariffs. The Puebla facility, Volkswagen’s largest outside Europe, produced nearly 350,000 vehicles in 2023, most of which were exported to the United States.
“The Volkswagen Group is concerned about the harmful economic impact that proposed tariffs by the US administration will have on American consumers and the international automotive industry. We remain a strong advocate for free and fair trade,” the company said in a statement.
Tariff Impacts on the Auto Sector
Volkswagen has invested over $10 billion in the US market and highlighted that open markets have historically driven global economic growth. Analysts from Stifel estimate that 65% of Volkswagen’s US sales are sourced from vehicles made in Mexico. Should the proposed tariffs take effect, Volkswagen may face significant challenges, with the brand’s competitiveness in the US market potentially at risk.
Volkswagen shares fell by 0.5%, dropping €0.50 to €96.35, amid the uncertainty. Shares of rival Stellantis also declined by 1.3%, closing at €12.68. Stellantis, which imports about 40% of its US-sold vehicles from Mexico and Canada, has supported initiatives to strengthen US-based manufacturing. John Elkann, Stellantis chairman, recently met with Trump and senior administration officials to discuss trade and manufacturing policies.
Broader Trade Implications
The proposed tariffs could jeopardize the US-Mexico-Canada Agreement (USMCA), which succeeded the North American Free Trade Agreement (NAFTA). Both Canada and Mexico have vowed to retaliate with counter-tariffs if Trump proceeds, raising the risk of a new trade war.
Financial markets reflected these concerns, with the Canadian dollar and Mexican peso weakening against the US dollar. By mid-morning, the Canadian dollar had dropped 0.9%, while the Mexican peso fell 1.2%.
As the automotive industry braces for potential disruptions, the proposed tariffs could have far-reaching implications for trade relations and market stability across North America.
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