This Week in Politics
British Farmers in Upheaval Over Budget
With the Labour government breaking precedent set in the 1990s, namely giving an inheritance tax credit to family farms, British farmers are in upheaval. Somewhat emulating European counterparts farmers have taken to the streets of London, promising to escalate action if the government does not listen. According to the budget, by April 2026 farmers will pay a 20% tax on farms worth over £1 million when the estate is passed on a generation. While protest organisers urged participants not to bring machinery into central London some tractors drove past Downing Street with signs saying “the final straw” and “no farmers, no food.” Police estimated some 13,000 protesters, many themselves holding signs stating “Stand with a farmer, not Starmer.”
The Labour government estimates the “vast majority” of farms, about 75%, will not need to pay the inheritance tax. Various loopholes mean a farmer can pass on their property tax-free under a value of £3 million. Moreover, the government states the 20% duty is half the 40% usual inheritance tax. A Starmer spokesperson recognised that it had been a "difficult" decision, yet was not being reconsidered. Other supporters of the tax believe it will recoup money from the wealthy purchasing farming land.
“It’s become the most effective way for the super-rich to avoid paying their inheritance tax.” - Environment Secretary Steve Reed stated in an article in favour of the tax in The Daily Telegraph.
However, the British farmers' union estimates some 60% of farmers will be targeted. Further stating that land value is not reflective of profits, which can often be thin and volatile. The government's figures showed most farms' income fell in the year ending February 2024, in some cases by 70% or more. Whether the government will change course is unsure, the budget demands increased taxes and Labour seems convinced that removing the tax credit may be a way of filling the gaps. Farmers disagree, worrying they may fall through the cracks.
A New Attorney General Nominee
Following Matt Gaetz's withdrawal, amid grave controversy, President-elect Donald J. Trump announced Pam Bondi as his new Attorney General nominee. She is a long-standing Trump ally who has served as Florida state attorney general. The president-elect is determined to install an ally as the Head of the Justice Department, which he accuses of harbouring “deep state” enemies. Ms Bondi served on Trump's legal team on his first impeachment trial and currently heads the legal division of the America First Policy Institute.
“I have known Pam for many years — She is smart and tough and is an AMERICA FIRST Fighter, who will do a terrific job as Attorney General!” - Trump stated in his announcement on social media.
German Vice Chancellor Calls for Open Dialogue across the Political Spectrum
With the German "traffic coalition," including the Social Democrats, Greens, and Liberals, falling apart Europe's largest economy is set to vote on February 23 next year. The current vice chancellor representing the Green Party called for unityfollowing increasing tensions.
"We shouldn't be ashamed to cooperate." - Germany's deputy leader.
Some 3 months from Election Day Vice Chancellor Habeck stated he is open to forming agreements across the political spectrum, saying "Anything is possible." Mr Habeck is expected to win the internal race to become the Green Party's candidate for chancellor. A Green chancellor is unlikely according to polling suggesting the party might muster 11% compared with the CDU garnering 33% in current polling. The SPD, currently holding the chancellorship, has plummeted to 16%, which would be its worst result since World War 2. While the far-right AfD enjoys support hovering around 18%. Smaller parties such as the Liberals and Left currently poll beneath the 5% threshold to enter parliament, meaning they might lose representation this coming February - a shake-up in German politics.
