Governments First Budget

It is part of the Labour budget tradition I think.

Allira

Yes, she did

However, following much speculation, she confirmed reforms to agricultural property relief (APR) and business property relief (BPR) from April 2026.
From this date, the first £1m of combined business and agricultural assets will continue to attract no inheritance tax.
But, for assets over £1m, inheritance tax will apply with 50% relief.
Andrew Entwistle, partner and head of valuations at GFW said the changes will have a bigger impact on British farming than Brexit, and “show a deeply limited understanding of the realities of family farming”.

“The suggestion that most family farms won’t be affected because they aren’t worth over £1 million is, frankly, unrealistic.

“Farmers are often asset-rich but cash-poor; with an average farm valued around £3 million, we’re now looking at inheritance tax bills of approximately £400,000.”

www.farmersguide.co.uk/business/politics/chancellor-announces-hammer-blow-reforms-to-agricultural-property-relief

This will destroy many family farms. Don't forget that inheritance tax has to be paid promptly after death. I don't know any farmers who have a spare £400,000 cash available to pay the tax. Their only option would be to sell off land which would make the farm unviable.
I am hugely relieved our children did not want to take on our farm when we retired.

It's a very short-sighted tax.

Of course, the idea might be to force young farmers into selling off some land for all these new homes that are proposed.

All the new home occupiers are going to want to eat, though, aren't they. Have they thought of that? 🤔

madalene

Why have they cut one penny off a pint of draught beer?
Is it an old fashioned idea that a working man drinks pints and will be grateful for saving a penny off it?
All the younger ones drink bottled lagers these days.
Would draught lager count as beer?

Madalene
You need to get out more. Craft and draught beers were the largest proportion of beers bought last year.
Very old thinking that keg beers are only for the pidgeon fanciers and those that keep whippets and store their coal in the bath.

Allira

growstuff

Allira

Mollygo

Improving the life of my DGD will not immediately become apparent when her bus fare becomes £30pw. Easier if you live in an IGO area, but she doesn’t.

I was surprised that bus fares have to be paid for to attend FE College here; when I asked if DGD should get a pass, DS said no, they had enquired, even though the local schools have no sixth form.
Another expense for parents.

It's not just wherever you are. 16-18 year olds have to pay for transport everywhere.

Yet 16-18 year olds must remain in education or training.

Rather that than sat in their rooms on their ps5 or whatever, tik tok maybe !! Education and apprenticeships what is wrong with that.

I don’t think a penny off a pint is going to attract more customers, to be honest. I’ve no idea why she did that. It won’t make any difference to anyone.

If average farms start losing £400,000 in inheritance tax, young people will no longer want to go into farming, as the farms will gradually become smaller. They’ll have to sell land to pay the bill. Farmers are mostly asset rich but cash poor. If younger people don’t want to follow their parents into farming, there will inevitably be less food produced in this country and more food transported to the country from abroad.

That’ll help Ed Miliband’s green targets won’t it!

25Avalon

I can’t see landlords reducing the cost of a pint to the punters. They will need this to offset other costs.

Entirely up to them. There will be those who do however, and they will get the custom.

I can’t see landlords reducing the cost of a pint to the punters. They will need this to offset other costs.

Our village pub is a CAMERA pub and all the specialist beers are on draught, so it will please all the evening dog walkers. It’s filled every evening. 🙂

madalene

Why have they cut one penny off a pint of draught beer?
Is it an old fashioned idea that a working man drinks pints and will be grateful for saving a penny off it?
All the younger ones drink bottled lagers these days.
Would draught lager count as beer?

Working people drink beer. It's to cheer up working people.

Politicians drink subsidised wine from the H of C bar.

Actually, Farage drinks beer, doesn't he? Well, that might please him 🍻

My post was to Wyllow but others appeared in between.

I dont recall a new tax on farms being mentioned in the budget at all?

This could push up food prices.
As I said previously, most governments have little or no understanding of farming.

Yes, she did

However, following much speculation, she confirmed reforms to agricultural property relief (APR) and business property relief (BPR) from April 2026.
From this date, the first £1m of combined business and agricultural assets will continue to attract no inheritance tax.
But, for assets over £1m, inheritance tax will apply with 50% relief.
Andrew Entwistle, partner and head of valuations at GFW said the changes will have a bigger impact on British farming than Brexit, and “show a deeply limited understanding of the realities of family farming”.

“The suggestion that most family farms won’t be affected because they aren’t worth over £1 million is, frankly, unrealistic.

“Farmers are often asset-rich but cash-poor; with an average farm valued around £3 million, we’re now looking at inheritance tax bills of approximately £400,000.”

www.farmersguide.co.uk/business/politics/chancellor-announces-hammer-blow-reforms-to-agricultural-property-relief

escaped

I've only had a quick look as I'm busy baking to take on holiday tomorrow.

I'm pleased the NHS is being given priority, especially diagnostic centres to speed things up. I just hope they can find enough staff to fill the vacancies.
I'm a bit miffed that she said most things can’t be put in place until next year or even later, yet she can immediately clobber parents with the 20% VAT on school fees from the start of next term. That's mean. Hey ho. I'll put up and maybe shut up now!

I noticed that too!

Plus something starts from tomorrow!
But I forget what.

Cross Post Allira re staffing. I didn't read yours, busy with a piping bag (looks like worms!).

Why have they cut one penny off a pint of draught beer?
Is it an old fashioned idea that a working man drinks pints and will be grateful for saving a penny off it?
All the younger ones drink bottled lagers these days.
Would draught lager count as beer?

Allira

Extra NHS beds and more appointments will not be possible without more trained staff.
Where are the staff to come from?

If IHT is to be paid on family farms how will this affect food prices?
There are few governments which ever seem to understand farming.

We'll need to see the 10 year plan tba on NHS staffing.

the current rules on farms are

" Once you have farmed for more than two years, most working farms are able to pass from one generation to the next with no or reduced inheritance tax being payable"

I dont recall a new tax on farms being mentioned in the budget at all?

I've only had a quick look as I'm busy baking to take on holiday tomorrow.

I'm pleased the NHS is being given priority, especially diagnostic centres to speed things up. I just hope they can find enough staff to fill the vacancies.
I'm a bit miffed that she said most things can’t be put in place until next year or even later, yet she can immediately clobber parents with the 20% VAT on school fees from the start of next term. That's mean. Hey ho. I'll put up and maybe shut up now!

Whitewavemark2

winterwhite re- paying for services.

That is the nub isn’t it?

That is the choice.

1. A society where tax is at a minimum but you are expected to support yourself in every area of your life except, perhaps, primary education, defence and security etc.

Or

2. A society where tax is paid at a level that gives security to every citizen regardless of ability. So health, care, education, public services, safety nets etc, are there. Investment in wider society like local amenities, good access to parks etc,

I prefer the latter - personal choice.

Well said, I think it sums things up.

Casdon

Pantglas2

I understood the thresholds would remain frozen until 2028-9 tax year MaizieD and then be raised by inflation.

So not so much jam tomorrow but in three and a half years time! And don’t celebrate too soon folks as it’ll mean less than a pound a week…

I was cheering the principle of uplifting it in line with inflation, because there were strong rumours coming from the analysts that it wouldn’t happen during this parliament.

I'd have given it a bigger 'hooray' if she'd started raising them from next April.

After all, all this new money for investment, NHS etc will inevitably raise the tax take. She could have been a bit more generous on the thresholds.

fancythat

Am I right in thinking I heard that there is to be a 2% drop in funding for many government funded departments.
Not NHS, nor schools?
But prisons, police etc etc

Thank you Doodle for that summary above.

Yes it will be good to have details on where the 2% cuts are but I didn't catch all the budget re police, prisons.

Extra NHS beds and more appointments will not be possible without more trained staff.
Where are the staff to come from?

If IHT is to be paid on family farms how will this affect food prices?
There are few governments which ever seem to understand farming.

Mollygo

Wyllow3

After a few weeks of people knocking/mocking the term "working people" - what term did Sunak use? Yup, that's right - "working people".

Of course he did. It’s the in phrase now thanks to KS.

If Sunak had thought it was in anyway inappropriate he certainly wouldn't have "copied" it.

He would have used/termed his own phrase to emphasis the difference.

Pantglas2

I understood the thresholds would remain frozen until 2028-9 tax year MaizieD and then be raised by inflation.

So not so much jam tomorrow but in three and a half years time! And don’t celebrate too soon folks as it’ll mean less than a pound a week…

I was cheering the principle of uplifting it in line with inflation, because there were strong rumours coming from the analysts that it wouldn’t happen during this parliament.

paddyann54

growstuff bus travel is free for all hildren and young adults up to age 22 here It saves parents money and time and keeps old bangers and boy racers off the roads .We do pay a bit more in tax but isn,t that what a progressive government is? My friend who is a nurse says she pays just £4 a month more tax than her equivalent nurse in England but she gets far more back in free uni free personal care for her mother and free travel for her school age son.
If Scotland is doing this on a FIXED BUDGET why with Englands ability to print money ( used in strange ways and given to friends) aren’t,t they helping the people at the bottom of the tree instead of spending it on stupid stuff

There are plenty of old bangers and boy racers on Scotland's pot holes roads. It's odd that with all these supposed "free" benefits that the SNP were decimated at the last general election, now rule as a minority government in Holyrood, can't attract members and suffering a massive drop in support and hence funding. Take the rose tinted specs off.