There's been a lot of rubbish written in the right wing press about the budget and the changes made to farmers' inheritance liabilities. Taking to their tractors for a demonstration in London on Monday, there were joined by self-confessed tax dodger Jeremy Clarkson and, among other things, drove one of their machines through a police barrier. Needless to say, Just Stop Oil activists have been handed hefty sentences for less. On the substance of the changes, the National Farmers' Union and its wealthier patrons are acting like the sky's about to fall in. Whereas other analyses, not just those proffered by the government, are in agreement that only a small minority of farmers will be required to cough up under the new rules. This, predominantly, is a revolt of the rural rich.
Thinking back over the future of the Tories last year, I argued that with a Commons wipe out we were bound to see extra-parliamentary movements of the right mobilise against the new Labour government around real and imagined grievances. This happened far quicker than anyone expected in the summer, but it had been glowing and flaring in the embers of the dying Tory government. There were, for instance, the anti-ultra low emission zone protests and the attendant "direct action" of vandalising and ripping up enforcement cameras in London. And we don't have to look too far back in the past to recall the blockade of refineries in 2000 and the Countryside Alliance march a couple of years later. Ostensibly against the ban on hunting with hounds this was a coat peg for a cagoule full of anti-townie grievances. Not all of which were unwarranted.
The coverage of the "plight" of wealthy land owners reminds us whose mouthpiece the media is, but it's a warning. It's easy to mock the likes of Clarkson and James Dyson, for whom their investments in agricultural land is to save their well heeled offspring from a tax bill when their clogs are popped, but what Labour and the left have to be wary of is the capacity of capital to mobilise a wider constituency. Rachel Reeves's taxes on unearned income has already driven the right to apoplexy because she has dared touch the lynchpin of their class power. But this is enough to stir up petit bourgeois layers as well, even though they're not caught by the inheritance tax take nor likely to ever be. For them it's a statement of intent, a declaration that the government might come for their more modest incomes next - in much the same way pledges to raise income tax on the highest earners sends jitters through the next layer down. It plays into their fears, and despite promising to be the most pro-business government ever, there are sections of capital, big and small, that are instinctively worried about a Labour government because of its class basis.
Therefore, as wealthy landowners mobilise their well of concerns - tax, subsidies, minimum prices, DEFRA regulations and inspections, townie arrogance - it's like casting seed onto particularly fertile soil when Labour are in office. Contrast this with how the Tories shafted farmers without any blowback from the right wing press, or self-appointed celebrity friends of farmers, nor much action from the NFU itself beyond strongly worded lobbying.
Labour and the labour movement aren't necessarily helpless, but they are if the ground is ceded to the rural rich. Already, the government have decided to push managerial over political messaging when it comes to controversial issues, a decision that renders it vulnerable in the medium to long-term. But there are advantages to be accrued from driving a wedge, which the inheritance tax changes are, between the majority of farmers and the layer of wealthy land owners. One would be the disincentive of the tax dodging rich to pile up agricultural holdings and encouraging sales, sending the ever increasing value of land into reverse and freeing up more for farming at the expense of land banking. The unionisation of agricultural workers, of which several drives are ongoing, is another, of making the presence of organised labour felt in the countryside - particularly among migrant workers who are often at the sharp end of the most exploitative contracts and employer abuses, could also work against the political influence the rural rich enjoy in their manors.
The art of politics is not just about winning, but demobilising one's opponents and preventing them from taking a lead on issues under your control. The handling of the so-called farmers' protest suggests that the ruthlessness the Labour leadership has shown its internal opponents is conspicuously lacking where those outwith its ranks are concerned. But with only a thin layer of votes to fall back on, if they want to be in for at least a decade to fulfil Keir Starmer's "missions" they're going to have to take this more seriously.
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The Guardian piece you linked to does not support your contention that the changes to inheritance tax only affect wealthier landowners:
ReplyDeletehttps://www.theguardian.com/environment/2024/nov/19/what-are-inheritance-tax-changes-affecting-uk-farmers
In fact it says :
"Since 1992, agricultural property relief (APR) has meant family farms have been passed down tax-free in a policy intended to bolster food security and keep people on the land. This tax exemption was made because farming is often not a lucrative business, and the work is difficult, so people often do it simply because it is the family business. If farmers sell up, this affects food security. The UK now produces less than 60% of the food its inhabitants eat."
It then gives a neutral assessment of the farmers' argument, and does not judge whether it is correct or not. You then state:
"Whereas other analyses, not just those proffered by the government, are in agreement that only a small minority of farmers will be required to cough up under the new rules."
But you do not link to any of these "other analyses". You continue by making a number of points that may well be correct, but must be taken on the faith that the "other analyses" both exist and are cogent.
So it's not a particularly convincing post, tbh.