Labour’s new Transport Secretary defends inheritance tax raid on farmers: ‘It’s fair and balanced!’

Transport Secretary Heidi Alexander has defended the government’s new inheritance tax changes for farms, insisting the measures are “fair and balanced.”

Speaking on GB News, Alexander emphasised that most estates would not be affected by the changes.

“I think we have taken a fair and balanced approach to this, and the vast majority of the estates won’t be affected,” she said.

The Transport Secretary argued that wealthy landowners who have previously benefited from the system should contribute more during the current financial climate.

She pointed out that some affluent property owners had been taking advantage of existing arrangements.

“Those with the broadest shoulders need to make the biggest contribution,” Alexander stated, highlighting the government’s commitment to addressing financial challenges

Alexander detailed that couples could potentially pass on up to £3million tax-free, depending on their circumstances.

The Transport Secretary noted that both the Institute for Fiscal Studies and the Office for Budget Responsibility had verified the government’s calculations on this matter.

“We inherited this £22billion black hole, massive in-year overspends as soon as we came into government,” Alexander explained.

She emphasised that the government faced crucial choices in managing these financial pressures.

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Alexander contrasted the government’s approach with former Prime Minister Liz Truss’s economic policies.

“We could either go down the path of Liz Truss and cause absolute mayhem in the economy, which was what happened a couple of years ago when the markets lost confidence in her, or we could wipe the slate clean,” she said.

The Transport Secretary highlighted the government’s commitment to investing in the agricultural sector.

“We’ve also allocated £5billion to spend on sustainable farming, and I think that’s really important,” she noted.

Alexander acknowledged that while some decisions were challenging, they were necessary for economic stability.

“Some difficult decisions had to be taken,” she said, emphasising the government’s focus on prioritising public services.

She defended the broader expenses system, noting: “The expenses are there in order to enable MPs to live in London and live in their constituency.”

She highlighted the government’s efforts to increase pension credit uptake, and pointed to the extension of the household support fund.

“People who are just above the limit for pension credit can actually apply to their local authority if they’re in hardship,” she explained.