Leading Labour figures discuss farm tax, devolution and the Red Arrows on visit to Lincolnshire
The Chancellor insists that she has got the ‘balance right’ when it comes to taxes on farms — as she defended her budget against criticism.
Labour ministers were quizzed on new tax rules for family farms - as well as the future of the Red Arrows and devolution - during a visit to the county.
Chancellor Rachel Reeves, Secretary of State for Defence John Healey, and Lincoln MP Hamish Falconer spoke to the press at RAF Waddington near Lincoln on Friday (February 28).
Secretary of State for Business and Trade Jonathan Reynolds also visited but left without being interviewed.
Mrs Reeves later defended the changes to Inheritance Tax rules, specifically around Agricultural Property Relief and Business Property Relief on farmland and business assets.
Previously, farmland was exempt from Inheritance Tax. However, the changes announced in last year's autumn budget will restrict this exemption. From April 2026, agricultural assets exceeding £1 million will be subject to a 20% tax.
The move has proved controversial among farmers and local authorities across the county, with both Lincolnshire County Council and Boston Borough Council writing to the government to express concerns about the changes.
"The Environment Secretary, Steve Reed, met with farmers this week. My colleague, the Exchequer Secretary, who is responsible for tax policy, has also recently met with the National Farmers' Union" the Chancellor said.
"We got the balance right in the budget. We have an inheritance tax for farms that is half the rate of inheritance tax that other people face, and it doesn’t kick in until a farm is worth around £3 million.
"That is why only around a third of estates will be affected by this tax at all, and there is a ten-year interest period to pay any tax due.
"That is the right balance while we fix our public finances and ensure we have the money to invest in our public services, including defence, which is increasingly important in the uncertain world we live in today."
Reflecting on the Prime Minister's decision to increase defence spending to 2.5% of GDP, Mr Healey insisted it was a "vote of confidence in Lincolnshire's economy".
The MP for Rawmarsh and Conisbrough also assured that there are currently no threats to Lincolnshire's famed Red Arrows, describing them as a "proud British institution".
He added: "It has trained some of the best pilots in the world, it sets standards for other air forces that follow them with great envy. We're proud of them – we'll back them for the future.
"We’re very proud to be here together at Waddington, which is their new home, and to have met some of the team that don’t just fly the planes but also keep them in the air and support them as well."
Mr Falconer, who also acts as the Parliamentary Under-Secretary of State for the Middle East, Afghanistan, and Pakistan, shared his views on the potential reorganisation of local government in Lincolnshire.
Authorities are due to submit proposals by March 21 on how to separate the county into unitary authorities, each with a population of around 500,000.
The MP stressed his support for Lincoln's long-standing self-governance, saying: "I really want to see 1,000 years of Lincoln's continuous history of governing itself being preserved."
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