SIR Keir Starmer today watered down his hated inheritance tax raid on farmers following months of furious protests.
The PM quietly announced that the threshold at which the levy applies will rise from £1m to £2.5m.
It will enable spouses to pass on £5m worth of agricultural assets between them before being hit by inheritance tax.
The partial U-turn follows 14 months of enraged protests, led by Clarkson’s Farm star, Jeremy Clarkson.
Furious agricultural workers took to Westminster in their thousands brandishing signs including “Keir Starmer farmer harmer” and “no farmers, no food, no future“.
The move will see the number of estates impacted by the tax fall from 375 to 185.
The concession will cost the Treasury £130m.
Slipping the news out before Christmas, Environment Secretary Emma Reynolds said: “Farmers are at the heart of our food security and environmental stewardship, and I am determined to work with them to secure a profitable future for British farming.
“We have listened closely to farmers across the country and we are making changes today to protect more ordinary family farms.
“It’s only right that larger estates contribute more, while we back the farms and trading businesses that are the backbone of Britain’s rural communities.”
Labour MPs representing rural constituencies have expressed fury at the tax raid since it was announced at last year’s Budget by Chancellor Rachel Reeves.
Despite lobbying the PM to change course for more than a year, he continued to defend the move as recently last week.
Responding to the partial U-turn, Shadow Environment Secretary Victoria Atkins said: “At long last, Labour has snuck out a partial u-turn on their vindictive Family Farm Tax.”
She added: “It is too late for some, however.
“Businesses and lives have been lost.
“Rural communities will not forget the distress, pain and panic this government has caused them.”
The Lib Dems called for Sir Keir to go further and scrap the tax altogether.
Tom Bradshaw, President of the National Farmers’ Union, said the move “will come as a huge relief to many:.
He added: “While there is still tax to pay, this will greatly reduce that tax burden for many family farms, those working people of the countryside.”
