Over 50 food manufacturers, supermarkets and other industry organisations have joined forces with National Farmers Union (NFU) to urge the Treasury to rethink the changes to inheritance tax announced at the Budget in October.
The Chancellor’s plan would see any inherited agriculture land worth more than £1m potentially being taxed at a rate of 20% from April 2026, a move farmers argue will put the security of the industry and the UK’s food sector at risk.
Led by the NFU, a letter from the food supply chain, which includes all major supermarket retailers and manufacturers such as Arla, Muller, Cranswick, and Kepak, has voiced concerns about the government’s plan to scrap Agricultural Property Relief (APR) and Business Property Relief (BPR).
The coalition warns that removing these reliefs threatens the long-term stability of the nation’s food resilience, which relies on continued investment to futureproof sustainable food production, at a time when the government has stated that food security is national security. It also highlights the barriers the changes could cause for boosting growth and productivity in the sector and tackling diet-related health issues.
NFU President Tom Bradshaw said: “We have made our views on this awful family farm tax very clear. Now so have 57 other businesses across the food supply chain. This abhorrent policy has united farming and the whole of the supply chain like never before. How loud does the chorus of concern around the policy have to be for Treasury to listen and take action?
“Scrapping critical inheritance tax reliefs not only affects family-run farms, but it stands to have far-reaching consequences for the whole industry, from food processors to supermarket retailers.
“Faced with a backdrop of global instability, a changing climate, high input costs and a growing global population to feed, this policy risks destabilising an industry that is vital to feeding the nation and one that supports millions of jobs. Because when one link in a supply chain, the link that is producing the raw materials, has a crisis of confidence and has already all but stopped investment, it has an impact on the whole of the industry; an impact that will eventually be felt on supermarket shelves. Is this the vision for economic growth the country was promised?
“The Chancellor has said she has seen no alternative proposals put forward, yet there have been solutions put forward by tax experts and Labour MPs. With large numbers of Britain’s biggest manufacturing sector – food and drink – against this policy, it is time for the Chancellor to heed our calls to meet to discuss options and find a way forward out of this current mess.”
Last month, Lidl, Aldi, and Tesco joined other food retailers in issuing statements that raised concerns over the government’s plan, calling for a pause in the implementation of the policy while a full consultation is carried out.
NAM Implications:
- This says it all: “Faced with a backdrop of global instability, a changing climate, high input costs and a growing global population to feed, this policy risks destabilising an industry that is vital to feeding the nation and one that supports millions of jobs.”
- All now depends on the government’s ability to admit they have ‘overstepped’…
- …and are willing to U-turn.
- (and swallow the criticism…)
- Begging the question, are they that big?
