The entire food manufacturing industry has joined forces to urge the government to rethink changes to inheritance tax announced in the autumn budget. A total of 57 businesses across the food supply chain, including all of the UK’s major supermarkets, have voiced their concern in a new letter.The industry, which contributes £162 billion to the economy and supports over 4.5 million jobs, warns the Treasury of risks to supply chains over the IHT changes.Led by the NFU, the letter voices concerns about the government’s plan to scrap agricultural property relief (APR) and business property relief (BPR).The coalition, which also includes major food producers such as 2 Sisters, Pilgrims and Cranswick, warns that removing these reliefs threatens the long-term stability of the UK’s food resilience.The letter 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 warned that Labour’s budgetary policy risked “destabilising an industry that is vital to feeding the nation.””How loud does the chorus of concern around the policy have to be for Treasury to listen and take action?” Mr Bradshaw asked.“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.”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.”The government announced a reform of APR and BPR in the autumn budget, meaning farms worth more than £1m will incur a 20% inheritance tax charge from 2026.Retailers including Tesco, Waitrose, Marks & Spencer, Sainsbury’s, Asda and Morrisons have all spoken out against the the IHT changes in recent weeks, demanding an overhaul.Last Friday, Richard Walker, managing director of Iceland and a backer of Labour, criticised the chancellor’s decision to target family farms.The NFU has argued that 75% of farms could be impacted, with other industry estimates suggesting 2,500 farmers a year will be hit by the overhaul, five times as many as official forecasts.Mr Bradhsaw said: “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.”Signatories of the new letter also include the UK’s main farming unions, major dairy processors such as First Milk and Dale Farm, and numerous meat and egg businesses .It comes as thousands of farmers are preparing to return to Westminster on 10 February, making it the third major London protest since the autumn budget.The rally will commence on the same day that MPs are set to debate a 145,000-stro
Mer. Feb 5th, 2025
