Food industry urges Treasury to rethink changes to inheritance tax
6th February 2025
The food manufacturing industry, which contributes £162 billion to the economy and supports over 4.5 million jobs, has joined forces like never before to urge the Treasury to rethink changes to inheritance tax announced at the Budget.
Led by the NFU, a letter from the food supply chain, which includes all major supermarket retailers, 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.
Call for action
The 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.”
Mr Bradshaw added that this “abhorrent policy” has united farming and the whole of the supply chain like never before.
He said that 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.
“How loud does the chorus of concern around the policy have to be for Treasury to listen and take action?
“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,” Mr Bradshaw concluded.
Far-reaching consequences
The dairy sector has also come together to support the NFU’s calls for a pause to the implementation of the government’s proposed changes to the inheritance tax.
The strength of feeling among the sector was showcased on the NFU’s stand at Dairy-Tech yesterday, with visitors signing our pledge to Stop the Family Farm Tax.
NFU Dairy Board chair Paul Tompkins said: “This is a clear message from the UK dairy sector that the government must take action and work with industry to reduce the impact of this ill-advised policy.
“Dairy producers are already under extreme pressure from years of volatility, the impact of a changing climate, increased regulatory demands and the need to continuously invest in their businesses.
“This policy has far-reaching consequences across the whole industry and has already had a significant impact on producer confidence.”
READ MORE: GALLERY: Dairy-Tech 2025 brings together 300 exhibitors and thousands of visitors
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