(1) raise money by any means necessary (the coffers are empty);
(2) penalise the middle class for having 'unfair' advantages.
As Arthur Laffer recently reminded us, objective (1) isn't necessarily going to be met, in net terms, by having a new tax. For example, if you slap a 20% tax on private schools, but twenty percent of them go bust, you may actually decrease tax revenue. Nevertheless, if you manage to penalise the middle class, then at least one of your objectives will have been met.
Having successfully punished those who wish to keep their children away from the horrors of comprehensive schools, Labour's next move is to penalise family farms. Farming is linked to private land ownership, one of the primary objects of hatred and disapproval for Marxists and other leftists. Stalin, for example, was willing to let millions die for the sake of eliminating private farming, which he saw as anathema to the communist cause.
Labour's approach is to abolish the exemption for inheritance tax on agricultural property (agricultural property relief) for farms valued above £1 million. This is a ludicrously low threshold. There are houses in the Oxfordshire village I live in – not by any means grand houses – selling for close to a million.
One of the concepts that came out of the COVID crisis is that of key workers, and key sectors – sectors of the economy that we cannot do without, if a catastrophe ever hits. One of those sectors is surely food production. Rather than over-worrying about which minority groups need protection (from being offended), shouldn't we be worrying about which sectors of the economy need protection? Because, in a crisis, we are going to be royally screwed if they don't exist and we're forced to rely on possibly non-existent imports? Personally, I would put food production above even medical services and transport, on the list of sectors we cannot do without.
Farming, more perhaps than any other business, depends on long-term planning and strategy. It can take decades for an agricultural plan to come to full fruition. Continuity across generations has been a crucial part of British farming. And one unwise policy change is all it can take to permanently destroy an agricultural business. Can it ever be rebuilt? Don't count on it.
Depending on whose data you believe, the proportion of British farms affected by the tax change could be two thirds, or it could be 20 percent. But even 20 percent of our farms being gradually decimated is too much.
Academic think tank the Institute for Fiscal Studies has recommended the abolition of agricultural property relief, on the basis that "[if we have inheritance tax] it should apply equally across all types of assets."
If the government wishes to promote certain uses of land – such as producing food [...] – it would be fairer and more efficient to explicitly target support towards the activities it seeks to promote.This line of argument may look convincing on paper. But do the academics responsible for it have any practical knowledge of how farming works? Or considered that a tax you have to pay, plus a subsidy you have to claim, may look the same – in theory – as being left alone, but be very different in practice?
Even the Institute of Chartered Accountants, not particularly known for having a pro-Conservative stance, has warned that the £1m threshold is set too low, and that it will affect many more farms than the government claims.
As in the case of private schools, the big players will no doubt find ways and means to survive the onslaught. It's the smaller farms who are likely to go to the wall.
Do Labour politicians understand the economics of farming? Do they care? Is it wilful ignorance? Whatever the causes, the result will surely be to push the British farming sector closer to the brink.
• My colleague Celia Green has sometimes suggested that perhaps Britain "has a death wish". It's clear that there are people who seem to hate Britain (or a particular version of it), and who seem to want to destroy it. But is it possible for destruction to happen, unless a good proportion of the populace as a whole is to some extent on board with it? Is it possible that Freud's Todestrieb can operate at a societal level?