The Chancellor has been warned by Lidl and Tesco that her inheritance tax on farmers threatens “food security” for the UK.
Rachel Reeves is under immense pressure to U-turn on her “family farm tax” and Tesco is backing farmers as the Chancellor’s move could literally see hundreds of small family farms sell up.
Tesco’s chief commercial officer Ashwin Prasad warned the Chancellor the “UK’s future of food security is at stake.”
Prasad said that the stability of farms is “essential” for customers to ensure customers “can continue to get the great quality food they want, at a price they can afford.”
The Office for Budget Responsibility (OBR) has warned Reeves her levy might raise enough as she is wanting.
Prasad said in a statement, “One message is loud and clear: farmers desperately need more certainty. After years of policy change, it has been harder than ever for them to plan ahead or to invest in their farms.
“One current area of uncertainty is the proposed change to inheritance tax relief. With many smaller farms relying on APR [agricultural property relief] and BPR [business property relief], we fully understand their concerns.
“It’s why we’ll be supporting the NFU’s calls for a pause in the implementation of the policy, while a full consultation is carried out.”
The Co-Op said they “have directly contacted relevant government departments to communicate our hope that they will look again at the impact of the … changes.
“We have also agreed to sign the UK farming unions’ letter going to the government imminently, to call for a reconsideration of the proposed tax changes.”
Lidl waded in and said, “We are concerned that the recent changes to the inheritance tax regime will impact farmer and grower confidence and hold back the investment needed to build a resilient, productive and sustainable British food system.
“We, therefore, support the call by the farming community to pause the implementation of those changes and to consult with industry to achieve a mutually beneficial outcome. We will be raising our concerns with government at any opportunity we get.”
A government spokesperson said, “Our commitment to farmers remains steadfast – we have committed £5 billion to the farming budget over two years, including more money than ever for sustainable food production, and we are developing a 25-year farming roadmap, focusing on how to make the sector more profitable in the decades to come.
Leave a Comment