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The Trades Union Congress (TUC) has handed Sir Keir Starmer a 'hammer blow' by supporting British farmers in the fight to reverse the family farm tax.

Paul Nowak, general secretary at the TUC, said the Prime Minister and Chancellor Rachel Reeves must be held responsible for ensuring they deliver a response to concerns from the agricultural sector that the Autumn Budget's proposed 20% tax on inherited agricultural property and assets that should not impact small family farms in Britain.

The Prime Minister said the purpose of the tax was to 'raise revenue' for public services, and insisted that only 500 businesses could be affected by the tax changes.

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However, Jeremy Moody at the Central Association for Agricultural Valuers said more than 75,000 farmers could be impacted over the next 30 years as a result of Ms Reeves' changes.

NFU data has also revealed that an estimated 75% of farms in Britain could be affected due to being over the £1 million threshold.

A Conservative Party petition calling on the Government to reverse the family farm tax reached 200,000 signatures, while an NFU poll found 250,000 members of the public supported overturning the tax.

"I am worried about the impact of that on small farmers," Mr Nowak said.

"I know that for some small employers, national insurance contributions will also be a worry next year, particularly for those companies operating on small profit margins.

"Anyone would be worried.

"You would not want the policy to impact on small family farms, because that was never the intention.

"The onus will be on the Government to demonstrate that this does not have the impact that some fear it will have."

The Government has reiterated its positions that the measures will only affect around 500 estates.

"Our commitment to farmers remains steadfast – we have committed £5bn to the farming budget over two years, including more money than ever for sustainable food production, and we are developing a 25-year farming roadmap, focusing on how to make the sector more profitable in the decades to come," the spokesperson added.

"Our reform to Agricultural and Business Property Reliefs will impact around 500 estates a year.

"For these estates, Inheritance Tax will be at half the rate paid by others, with 10 years to pay the liability back interest-free.

"This is a fair and balanced approach, which fixes the public services we all rely on."

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