Oh dear. Rachel Reeves presumably believed she was being smart when announcing in her Budget that after 2026, heirs will pay tax when farms are passed on.
As far as the left is concerned the move to charge inheritance tax ticked their loathing boxes. Farmers are perceived as wealthy, they own land. Their farmhouses are often large and comfortable. They profit from supplying food. Theirs is a cosy existence in the fields, they don’t have to go out and look for work like the majority of folk. They can afford it.
It’s a similar set of criteria that saw the Chancellor target another privileged group when she imposed VAT on private school fees. Likewise the non-dom tax regime, which Reeves also scrapped in last week’s Budget.
But in going after farmers, she has made a huge mistake. Pursuing fee-paying parents and well-off foreigners has consequences: some pupils will transfer to the state system, adding to its burden; and non-doms are also employers and investors. However, they do not command popular, emotional support, they’re not able to galvanise the same and they don’t possess an already formidable lobbying organisation, not like the farmers.
Suddenly, as if from nowhere, the countryside is in revolt. Let them, say Labour’s urbanite supporters. Whether they’re still saying that when tractors are blockading Parliament Square and central London, and motorways are reduced to a crawl behind flocks of sheep, is another matter.
A newly re-energised National Farmers’ Union is in full cry, labelling the policy "disastrous". Reeves said that, from April 2026, farms and other business property that has been passed on to heirs tax-free will be subject to inheritance tax. Inheritors will have to pay 20 per cent of their value above £1m, half the headline inheritance tax rate of 40 per cent.
According to the Treasury, about 2,000 farms will be affected by the measure. That’s a disputed figure – some say it will be larger. Even supposing it is 2,000, that is enough to cause economic and social disaster, not to mention to provoke nationwide mayhem.
That’s because the farmers have no cushion. The current farmer dies, and bang, their children, assuming it is them, must find what is by anyone’s standards a considerable sum of money. For example, one quoted farmer is Andrew Smith, 56, on Bodmin Moor, in Cornwall. For more than 100 years, his family have run a cattle farm.
Today, he works with his three sons. They produce on average 2,000 sheep and 30 to 40 cows a year. By his reckoning, they make "no profit" and "just pay the bills". He’s expecting his sons to take over when he dies. But based on the Reeves formula, if the land is worth £5m they will have to pay £800,000.
What that means in effect is that, to raise the levy, the sons must sell a sizeable chunk of the farm. That will mark the end of the Smith farm, as it will no longer be viable. The land could easily be bought by a corporate farm that has no interest in preserving the local ways or protecting the environment, and is not part of the deeply embedded surrounding community. Food production could cease altogether.
Britain's Labour party unveils its first Budget – in pictures
Repeat that exercise 2,000 times and it’s possible to see how Reeves, in her zeal, has miscalculated. The pages of newspapers and journals across the political spectrum and TV news bulletins are filling with tales of despair. Farmers always make for good copy and pictures. Jeremy Clarkson, the ex-Top Gear presenter turned Cotswolds farmer, is in his element.
It’s naïve economics that signals a void at the heart of this government.
What she and her colleagues display is a fundamental lack of appreciation or understanding of the rural economy. They look at barbed wire fences, locked gates and "Keep Off" signs and remember Karl Marx’s famous dictum that all property is theft and their political hackles rise.
They don’t realise that asset-rich can be accompanied by cash-poor. In their eyes, too, they see people who sit at the beginning of a supply line that ends up in Tesco or Marks & Spencer and assume the farmers must be enjoying similarly healthy profits – cash gained from providing consumers with their daily necessities, from selling milk, bread, vegetables and meat. They see what they view as exploitation and not fulfilling a national service.
It takes no account of the complex processes involved, and the costs and risks. It’s naive economics that signals a void at the heart of this government. Not only do the farmers rightly feel betrayed by Reeves’ boss, Keir Starmer, who previously declared his commitment to farmers, but it shows an absence of thought, of vision. This a step that smacks of pettiness, of point-scoring rather than serious revenue-raising.
As with VAT on school charges and the abolition of non-doms, it suggests Labour abhor those it believes to be wealthy. While independent schools and non-doms will come and go as issues, the targetting of farmers will run and run. It is a boon for the Conservative party and its historic shire county power base.
There were the Tories, on their knees. Now, they have a focal point to rally around, something that will engender widespread acclaim.
In putting numbers above human lives (already, one suicide is being claimed because of her farming crackdown) Reeves has misjudged. Labour has won a landslide but its hierarchy remains unpopular. Starmer and his team are seen as distant, out of touch, owing more to a fellow north London metropolitan elite than to working people.
Farmers are fiercely proud and independent, answering to nobody. They’re also employers. They will think nothing of marching on Westminster. It’s as if Starmer and Reeves have learnt nothing from the French, long used to having the roads of Paris and other major cities clogged by bales of hay and piles of manure.
It may seem trivial, in the context of a Budget that said so much. Reeves almost certainly thought that compared to other items, the financial well-being of the UK’s farmers was of little consequence. She should think again, before it is too late.
UAE currency: the story behind the money in your pockets
Conflict, drought, famine
Estimates of the number of deaths caused by the famine range from 400,000 to 1 million, according to a document prepared for the UK House of Lords in 2024.
It has been claimed that the policies of the Ethiopian government, which took control after deposing Emperor Haile Selassie in a military-led revolution in 1974, contributed to the scale of the famine.
Dr Miriam Bradley, senior lecturer in humanitarian studies at the University of Manchester, has argued that, by the early 1980s, “several government policies combined to cause, rather than prevent, a famine which lasted from 1983 to 1985. Mengistu’s government imposed Stalinist-model agricultural policies involving forced collectivisation and villagisation [relocation of communities into planned villages].
The West became aware of the catastrophe through a series of BBC News reports by journalist Michael Buerk in October 1984 describing a “biblical famine” and containing graphic images of thousands of people, including children, facing starvation.
Band Aid
Bob Geldof, singer with the Irish rock group The Boomtown Rats, formed Band Aid in response to the horrific images shown in the news broadcasts.
With Midge Ure of the band Ultravox, he wrote the hit charity single Do They Know it’s Christmas in December 1984, featuring a string of high-profile musicians.
Following the single’s success, the idea to stage a rock concert evolved.
Live Aid was a series of simultaneous concerts that took place at Wembley Stadium in London, John F Kennedy Stadium in Philadelphia, the US, and at various other venues across the world.
The combined event was broadcast to an estimated worldwide audience of 1.5 billion.
Chelsea 2 Burnley 3
Chelsea Morata (69'), Luiz (88')
Burnley Vokes (24', 43'), Ward (39')
Red cards Cahill, Fabregas (Chelsea)
Business Insights
- As per the document, there are six filing options, including choosing to report on a realisation basis and transitional rules for pre-tax period gains or losses.
- SMEs with revenue below Dh3 million per annum can opt for transitional relief until 2026, treating them as having no taxable income.
- Larger entities have specific provisions for asset and liability movements, business restructuring, and handling foreign permanent establishments.
'How To Build A Boat'
Jonathan Gornall, Simon & Schuster
RESULTS
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THE LIGHT
Director: Tom Tykwer
Starring: Tala Al Deen, Nicolette Krebitz, Lars Eidinger
Rating: 3/5
Crops that could be introduced to the UAE
1: Quinoa
2. Bathua
3. Amaranth
4. Pearl and finger millet
5. Sorghum
UAE currency: the story behind the money in your pockets
COMPANY PROFILE
Name: Cofe
Year started: 2018
Based: UAE
Employees: 80-100
Amount raised: $13m
Investors: KISP ventures, Cedar Mundi, Towell Holding International, Takamul Capital, Dividend Gate Capital, Nizar AlNusif Sons Holding, Arab Investment Company and Al Imtiaz Investment Group
Essentials
The flights
Emirates and Etihad fly direct from the UAE to Los Angeles, from Dh4,975 return, including taxes. The flight time is 16 hours. Alaska Airlines, United Airlines, Delta Air Lines, Aeromexico and Southwest all fly direct from Los Angeles to San Jose del Cabo from Dh1,243 return, including taxes. The flight time is two-and-a-half hours.
The trip
Lindblad Expeditions National Geographic’s eight-day Whales Wilderness itinerary costs from US$6,190 (Dh22,736) per person, twin share, including meals, accommodation and excursions, with departures in March and April 2018.
Election pledges on migration
CDU: "Now is the time to control the German borders and enforce strict border rejections"
SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom"
VEZEETA PROFILE
Date started: 2012
Founder: Amir Barsoum
Based: Dubai, UAE
Sector: HealthTech / MedTech
Size: 300 employees
Funding: $22.6 million (as of September 2018)
Investors: Technology Development Fund, Silicon Badia, Beco Capital, Vostok New Ventures, Endeavour Catalyst, Crescent Enterprises’ CE-Ventures, Saudi Technology Ventures and IFC
Jawan
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Muslim Council of Elders condemns terrorism on religious sites
The Muslim Council of Elders has strongly condemned the criminal attacks on religious sites in Britain.
It firmly rejected “acts of terrorism, which constitute a flagrant violation of the sanctity of houses of worship”.
“Attacking places of worship is a form of terrorism and extremism that threatens peace and stability within societies,” it said.
The council also warned against the rise of hate speech, racism, extremism and Islamophobia. It urged the international community to join efforts to promote tolerance and peaceful coexistence.
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants
World Cup warm up matches
May 24 Pakistan v Afghanistan, Bristol; Sri Lanka v South Africa, Cardiff
May 25 England v Australia, Southampton; India v New Zealand, The Oval
May 26 South Africa v West Indies, Bristol; Pakistan v Bangladesh, Cardiff
May 27 Australia v Sri Lanka, Southampton; England v Afghanistan, The Oval
May 28 West Indies v New Zealand, Bristol; Bangladesh v India, Cardiff
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
SPEC%20SHEET
%3Cp%3E%3Cstrong%3EProcessor%3A%3C%2Fstrong%3E%20Apple%20M2%2C%208-core%20CPU%2C%20up%20to%2010-core%20CPU%2C%2016-core%20Neural%20Engine%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EDisplay%3A%3C%2Fstrong%3E%2013.6-inch%20Liquid%20Retina%2C%202560%20x%201664%2C%20224ppi%2C%20500%20nits%2C%20True%20Tone%2C%20wide%20colour%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMemory%3A%3C%2Fstrong%3E%208%2F16%2F24GB%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStorage%3A%3C%2Fstrong%3E%20256%2F512GB%20%2F%201%2F2TB%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EI%2FO%3A%3C%2Fstrong%3E%20Thunderbolt%203%20(2)%2C%203.5mm%20audio%2C%20Touch%20ID%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EConnectivity%3A%3C%2Fstrong%3E%20Wi-Fi%206%2C%20Bluetooth%205.0%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EBattery%3A%3C%2Fstrong%3E%2052.6Wh%20lithium-polymer%2C%20up%20to%2018%20hours%2C%20MagSafe%20charging%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECamera%3A%3C%2Fstrong%3E%201080p%20FaceTime%20HD%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EVideo%3A%3C%2Fstrong%3E%20Support%20for%20Apple%20ProRes%2C%20HDR%20with%20Dolby%20Vision%2C%20HDR10%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EAudio%3A%3C%2Fstrong%3E%204-speaker%20system%2C%20wide%20stereo%2C%20support%20for%20Dolby%20Atmos%2C%20Spatial%20Audio%20and%20dynamic%20head%20tracking%20(with%20AirPods)%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EColours%3A%3C%2Fstrong%3E%20Silver%2C%20space%20grey%2C%20starlight%2C%20midnight%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EIn%20the%20box%3A%3C%2Fstrong%3E%20MacBook%20Air%2C%2030W%20or%2035W%20dual-port%20power%20adapter%2C%20USB-C-to-MagSafe%20cable%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPrice%3A%3C%2Fstrong%3E%20From%20Dh4%2C999%3C%2Fp%3E%0A
ESSENTIALS
The flights
Emirates flies from Dubai to Phnom Penh via Yangon from Dh2,700 return including taxes. Cambodia Bayon Airlines and Cambodia Angkor Air offer return flights from Phnom Penh to Siem Reap from Dh250 return including taxes. The flight takes about 45 minutes.
The hotels
Rooms at the Raffles Le Royal in Phnom Penh cost from $225 (Dh826) per night including taxes. Rooms at the Grand Hotel d'Angkor cost from $261 (Dh960) per night including taxes.
The tours
A cyclo architecture tour of Phnom Penh costs from $20 (Dh75) per person for about three hours, with Khmer Architecture Tours. Tailor-made tours of all of Cambodia, or sites like Angkor alone, can be arranged by About Asia Travel. Emirates Holidays also offers packages.
Results
1. New Zealand Daniel Meech – Fine (name of horse), Richard Gardner – Calisto, Bruce Goodin - Backatorps Danny V, Samantha McIntosh – Check In. Team total First round: 200.22; Second round: 201.75 – Penalties 12 (jump-off 40.16 seconds) Prize €64,000
2. Ireland Cameron Hanley – Aiyetoro, David Simpson – Keoki, Paul Kennedy – Cartown Danger Mouse, Shane Breen – Laith. Team total 200.25/202.84 – P 12 (jump-off 51.79 – P17) Prize €40,000
3. Italy Luca Maria Moneta – Connery, Luca Coata – Crandessa, Simone Coata – Dardonge, Natale Chiaudani – Almero. Team total 130.82/198.-4 – P20. Prize €32,000
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
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'Cheb%20Khaled'
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