A Labour minister has been accused of being patronising by BBC presenter Victoria Derbyshire after telling farmers anxious about the so-called tractor tax they should find out how it works.
James Murray clashed with the Newsnight host last night hours after thousands of protesters held demonstrations in central London against the new overhaul of inheritance tax announced in last months Budget.
Chancellor Rachel Reeves plans to limit the existing 100 per cent inheritance tax relief on farms to only the first £1million.
Mr Murray, Exchequer Secretary to the Treasury, defended the proposals on BBC2s Newsnight - but was challenged over his approach by host Derbyshire.
She put to him that many people were already aware of the costs they faced - and that many of them were now looking at having to sell off their farms as a result.
Victoria Derbyshire, presenter of BBC2s Newsnight, accused Labour minister James Murray of being patronising after he urged farmers to find out how inheritance tax works
He was speaking on the programme hours after thousands of people attended a protest in central London about the Governments proposed changes to inheritance tax rules
Ealing North MP Mr Murray, a studio guest on the programme, said: I can understand there is a real strength of feeling about the decision that weve taken and that people might be anxious if theyre trying to work out if these changes might affect them.
What I would really encourage everyone to do, whos anxious about this, is to find out about how inheritance tax works and seek advice.
That prompted an incredulous response from Derbyshire, who asked him: Dont you think that thats exactly what they have been doing since the Budget? Thats rather patronising, isnt it, Mr Murray?
The minister insisted: No, I think that inheritance tax is something that many people whove been accessing agricultural property relief since the last changes in 1992, they may not have looked into the detail of inheritance tax because they havent had to think about it over the last 30 years.
He was then told by the host: Right, and those that have and know that they will be affected – I mean, if theyre affected then that is it. They say theyre going to have to sell their farms.
And when Mr Murray suggested that people look at how it works, get the right financial advice, she queried: So your advice is, get some tax planning advice to find a way of avoiding it?
The MP told her: Well, these are straightforward rules that exist within the tax system already around gifting, seven years later there is no inheritance tax due – it tapers within that seven-year period. There are spousal transfers, nil rate bands.
As the Prime Minister said, if you look at a typical couple who own a farm and want to pass it on to their descendants, they get up to £3million before they pay any inheritance tax.
James Murray told Newsnight: What I would really encourage everyone to do, whos anxious about this, is to find out about how inheritance tax works and seek advice
Victoria Derbyshire responded by saying: Dont you think that thats exactly what they have been doing since the Budget? Thats rather patronising, isnt it, Mr Murray?
Jeremy Clarkson was among those taking part in yesterdays protest and challenged the Government to back down over that he called its cocked up inheritance tax raid.
The 64-year-old, who is recovering from a life-saving heart operation, attended the event alongside his Clarksons Farm co-stars Kaleb Cooper and Charlie Ireland.
Also taking part were theatre legend Andrew Lloyd-Webber and dozens of MPs including new Conservative leader Kemi Badenoch and Reform UKs Nigel Farage.
The Metropolitan Police estimated 13,000 people attended the protest in central London, which called on the Government to scrap those changes announced in the Chancellors Budget last month.
Ms Reeves says the measures will only affect the wealthiest 500 estates each year but experts from the NFU say it will be up to 70,000 farms.
Under Labours plans, full inheritance tax relief will be restricted to the first £1million of combined agricultural and business property relief, above which landowners will pay a rate of 20 per cent, compared with 40 per cent on other estates.
The measure comes into effect in April 2026 and can be paid in instalments over 10 years interest free, the Government has said.
It comes on top of other exemptions, so that two people with farmland could pass on up to £3million without anything being paid, depending on their circumstances.
Jeremy Clarkson joined thousands of farmers outside Downing Street protesting against changes to agricultural inheritance tax rules on farms valued above £1million
Clarkson clashed with BBC presenter Victoria Derbyshire in an interview on Tuesday afternoon which was then replayed on that evenings edition of Newsnight on BBC2
Reform UKs leader Nigel Farage also joined farmers protesting against the Labour proposals
Earlier in last nights Newsnight a row broke out over Clarksons appearance at the farmers tractor tax protest in London after his angry interview with Derbyshire.
Former Labour minister Jim Murphy condemned former Top Gear host Clarkson as rude and aggressive - but ex-Conservative party chairman Sir Jake Berry hit back, defending him.
Clarkson became exasperated with Derbyshire when interviewed in Whitehall on Tuesday afternoon, accusing her of failing to be impartial and saying: Classic BBC - you people.
Footage of their exchange was shown at the start of last nights Newsnight broadcast and Derbyshire began her exchanges with her studio guests by asking Mr Murphy: What did you make of Mr Clarkson, what he had to say?
Mr Murphy, a former leader of the Scottish Labour Party, replied: I know Im in a minority, but I think its the first time Ive ever seen him on television – I dont watch cooking or motor car programmes. I hear a rumour he does at least one of those.
He does a farming programme, hes a farmer now? Okay. Look, I think the farmers are pretty ill served by him being one of their spokespeople.
When asked Why?, Mr Murphy responded by saying: I think hes rude, I think hes aggressive, I think from what I read he invested in a farm for inheritance tax reasons.
I think its a disservice to the hardworking hundreds and thousands of farmers in the country.
Conservative leader Kemi Badenoch was also at Tuesdays demo by farmers
Former Top Gear host and Clarksons Farm star Jeremy Clarkson spoke to the crowd during the farmers demonstration in Whitehall, central London, on Tuesday
Adults and children riding toy tractors were among the crowds gathering on Tuesday
But fellow Newsnight guest Sir Jake, who was a Conservative MP from 2010 until losing his seat at the general election in July this year, came to Clarksons defence.
Sir Jake, who also attended Tuesdays protest, told Mr Murphy: I was talking to farmers and I think youre wrong actually.
I think Jeremy Clarkson is warmly regarded by the farming community because, whether you like what he stands for or what he says, he draws public attention to the plight of farmers.
If you look for example at cereal farmers, theyve had a 73 per cent drop in their income because of the adverse weather weve had, so it is a sector under massive pressure.
When I was there, what people were asking me, what people were really concerned about is that it doesnt feel the Labour party has got a real grip on the number of people who are going to be affected by this – it feels like a bit of a stab in the dark.
Meanwhile, the Environment Secretary has insisted many farmers protesting over changes to inheritance tax are wrong about the policy.
Steve Reed rejected claims that the Government has underestimated how many will be affected by plans to limit 100 per cent property relief to the first £1million of agricultural assets.
Appearing before MPs on the Environment, Food and Rural Affairs committee on Tuesday, Mr Reed was pressed on the backlash.
Former Labour leader Jim Murphy described farmers as being ill served by Jeremy Clarkson
TV star Jeremy Clarkson was among the farmers taking part in demonstration in central London in Tuesday in protest at the Governments inheritance tax reforms
Chairman Alistair Carmichael said there were a lot more than 500 (farmers) here saying theyre going to be affected, and asked whether they were wrong.
Mr Reed acknowledged the changes would be unsettling and said he was listening to concerns, but that most farmers would not face a hike.
But figures cited by critics are based on Government data on the value of farms and then people have drawn a straight line to an inheritance tax liability, but you cant do that, because ownership is much more complex than one person, one farm, he said.
Ministers have argued the revenue is needed to help fix public services and plug a £22billion fiscal black hole left behind by their Tory predecessors which they say only became apparent after they entered government.