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Inheritance tax change for farms may be Reeves’s version of the ‘pasty tax’, says Ruth Davidson | Politics News

Rachel Reeves will end up reversing her decision to charge more inheritance tax on farms, Ruth Davidson has predicted.

Speaking on Sky News’ Electoral Dysfunction podcast, the former Tory Scottish leader compared the move in the budget to George Osborne’s infamous “pasty tax” U-turn.

Discussing yesterday’s budget, Ms Davidson said she doesn’t believe the chancellor’s financial plan is an omnishambles, but of all the measures, she believes inheritance tax on farms is likely to be reversed.

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The reform on inheritance tax means from April 2026, the £1m of combined business and agricultural assets will continue to not be taxed.

But for assets over £1m, inheritance tax will apply with 50% relief (at an effective rate of 20%).

Ms Davidson said: “A million sounds like a lot.

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‘Raising taxes was not an easy decision’

“But if you’ve got a couple of farm buildings, sheds, machinery sheds, some land, like almost all family farms, even small family farms, are above that threshold.

“It’s a massive whacking great cash tax bill you have to give the government if you pass on your farm to your kids and they have to find, and the thing about farmers is they might be land rich, but they’re pretty much cash poor because farming is not massively profitable.”

The Scottish politician pointed to the outcry from farmers on social media, who, she said, are posting “heartbreaking” 30-second videos from their tractors.

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Budget explained in 60 seconds

“The thing is that losing a farm is not like losing another business,” she added.

“It can’t come back, and the reason I know that is because that line is the exact line that Keir Starmer gave to the NFU conference last year.”

Celebrity farmer Jeremy Clarkson – whose Amazon Prime Clarkson’s Farm documents his forays into the world of farming – was another of those who reacted to the tax hike on X.

He wrote: “Farmers. I know that you have been shafted today. But please don’t despair.”

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While Location, Location, Location presenter Kirstie Allsopp added: “Rachel Reeves had f****d all farmers, she has destroyed their ability to pass farms on to their children, and broken the future of all our great estates, it is an appalling decision which shows the government has ZERO understanding of what matters to rural voters.”

The “pasty tax” refers to a proposal by Mr Osbourne in the March budget of 2012 which aimed to make hot takeaway snacks subject to 20% VAT.

The tax caused outrage among bakers at the time, and even led to pasty makers protesting outside Downing Street to deliver a petition opposing the controversial tax.

‘Tawdry’ Conservative Party’s campaign is marred by election betting scandal, Ruth Davidson says | Politics News

The Conservative Party is seen as “sleazy” and “grubby”, Ruth Davidson has said, as two of its candidates are being investigated over alleged bets placed on the election date.

The Gambling Commission is looking into two Tory candidates over alleged wagers on the date of the 4 July election.

An industry source has told Sky News that “more names” are being looked into, but police are so far “not involved”.

Speaking on the Electoral Dysfunction podcast with Sky News political editor Beth Rigby, and former broadcaster and presenter Carol Vorderman, the former leader of the Scottish Tories waded into the fallout of the alleged betting scandal.

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“What an absolute shit show. Firstly, I mean, how tawdry is it?” she said.

She described it as akin to “insider trading” and criticised Rishi Sunak’s response, saying he had repeatedly failed to get out in front and take control of events.

Speaking on the podcast, Ms Vorderman added: “The Tory party as they stand is just sleazy, it’s grubby.

“And it has gone on and on and on.

“From outside the Westminster bubble, whatever Sunak says, people now openly laugh at Tory politicians whenever they’re out of your studio Beth.

“Whenever they’re in front of an audience they don’t command any respect whatsoever.”

The trio also discussed tactical voting and why candidates target some seats more than others.

Tory candidates Craig Williams and Laura Saunders are both under investigation. Ms Saunders is married to the party’s director of campaigns Tony Lee.

Laura Saunders is the party’s candidate in Bristol North West.
Pic: Laura Saunders for Bristol North West
Image:
Laura Saunders is the party’s candidate in Bristol North West.
Pic: Laura Saunders for Bristol North West

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It also emerged this week that one of Mr Sunak’s close protection police officers has been arrested over alleged bets on the timing of the election as well.

During a leader’s event on BBC Question Time, Prime Minister Rishi Sunak said he was “incredibly angry” to learn of the allegations and said if anyone had broken the rules “they should face the full force of the law”.

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However, he refused to suspend the candidates while the investigations were ongoing.

It comes as the election campaigns approach the last two weeks before the country heads to the polls.

Email the team electoraldysfunction@sky.uk, post on X to @BethRigby, or send a WhatsApp voice note on 07934 200 444.

Ruth Perry: School run by teacher who took own life after Ofsted inspection upgraded to ‘good’ | UK News

A school run by a headteacher who took her own life after it was downgraded by Ofsted has now been rated as good.

Ruth Perry died in January after Caversham Primary School in Berkshire went from outstanding – the highest rating – to inadequate due to safeguarding concerns.

Her family believes stress associated with the inspection was a major factor in her death.

The tragedy prompted many teachers to call for changes to the inspection system and the end of the one-word grading system.

The school was reinspected on 21 and 22 June and assessed as good in all categories, the second-best rating.

A copy of the report says work “to address previous weaknesses has been swift, thorough and effective”.

“Straight after the last inspection, useful advice was sought from beyond the school,” it adds.

“In particular, this helped leaders to understand fully the extent of the weaknesses in safeguarding arrangements and prioritise what needed to be done.

“Ongoing and determined work has ensured that the improvements made have gone beyond the essential changes that were needed.”

Caversham Primary School
Image:
Caversham Primary School has made swift improvements, says Ofsted

The report mentions Ms Perry – and her sister said it shows how Ruth and school staff had quickly turned things around since the November inspection.

Professor Julia Waters added schools “should be given the opportunity to correct any technical weaknesses before the final report is published”.

“An inspection should be about helping schools with independent scrutiny, not catching them out and publicly shaming them,” said Ms Perry’s sister.

“Ofsted’s use of safeguarding as a ‘limiting judgement’, overriding all other strengths and complexities of a school, puts headteachers in that position of constant jeopardy.”

Ofsted boss Amanda Spielman has said the current one-word system should stay, but MPs will look into it as part of an upcoming inquiry into the inspections system.

Ms Spielman also said staff who produced the initial Caversham report were “professional and humane” in their work.

However, it has announced changes – such as giving schools more information on when inspections will happen and a consultation on reforms to the complaints system.

Schools where safeguarding concerns prompt an overall ‘inadequate’ rating, but where other measures are rated good or better, will also now be revisited within three months.

Anyone feeling emotionally distressed or suicidal can call Samaritans for help on 116 123 or email jo@samaritans.org in the UK. In the US, call the Samaritans branch in your area or 1 (800) 273-TALK

Michael Gove backs Ofsted inspections in face of criticism after death of Ruth Perry | Politics News

Levelling up secretary Michael Gove has said Ofsted plays a “vital role” in assessing school performance.

Mr Gove, a former education secretary, gave his backing to the schools inspector despite there being renewed calls for it to be reformed, and even abolished following the death of a headteacher.

Ruth Perry, who ran Caversham Primary School in Reading, took her own life while waiting for a critical Ofsted report that downgraded her school from outstanding to inadequate due to “safeguarding” issues.

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Inspectors gave the school the lowest possible rating despite the fact it was judged as “good” in every category bar leadership and management, where it was rated “inadequate”.

Ms Perry’s family have said her death was the direct result of the pressure put on her by the “deeply harmful” inspection.

Asked by Sophy Ridge whether Ofsted inspections were placing too much stress on teachers, Mr Gove said: “Well, the first thing is obviously when you’re talking about circumstances where a clearly public-spirited, talented, passionately committed person has taken their life, you have to have respect for her example and her family.

“So it’s important not to be too political when we’re reflecting on her passing.

“I do think, however, that Ofsted plays an vital role in providing information about how schools are performing well, which we can learn from, and which schools are not performing well, and therefore need help and intervention.”

Pressed on whether the four grades used by Ofsted (outstanding, good, requires improvement and inadequate) were a “blunt instrument”, the Cabinet minister said he thought they were “important”.

However, he said “we do need to reflect and look at” so-called “limiting judgements”, whereby a school can be found to be inadequate overall because it is rated as such in the safeguarding category.

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Ofsted is a non-ministerial government department that inspects schools and other education services.

Following the death of Ms Perry, Ofsted has faced calls to halt inspections.

A petition calling for an inquiry into the inspection of Caversham Primary School has gathered more than 110,000 signatures.

Ofsted’s chief inspector Amanda Spielman said Ms Perry’s death “was met with great sadness at Ofsted” but declined to halt inspections, saying they played an “important part” in maintaining standards in education.

Read more:
Call for new school inspection system after headteacher’s suicide
School which ‘refused entry’ to Ofsted over headteacher’s death facing inspection

Schools have also been removing logos and references to Ofsted ratings from their websites in solidarity with Ms Perry and headteachers have said they planned to stage peaceful protests – including wearing black clothing and armbands and displaying photographs of Ms Perry around buildings – when Ofsted inspections take place.

The National Education Union has also called for Ofsted to be replaced with a new agency.

Mr Gove said he believed Ofsted did a “great job” and that Ms Spielman was “committed to supporting teachers to do better”.

“One of my worries is that some of the people who are attacking Ofsted object to transparency, are anti-high standards, and what we need to do to is recognise that education has improved in the last 13 years and the role of Ofsted under successive chief inspectors has been absolutely central to that,” he said.