Some of the UK’s biggest food manufacturers, plus nine of its largest supermarkets, have joined the NFU’s campaign to abolish controversial government changes to Inheritance Tax liabilities for farm businesses.
Almost 60 companies have signed a letter by the NFU voicing concerns over the changes – first announced in Rachel Reeves’ budget on 30 October – which will see Agricultural Property Relief and Business Property Relief reduced from 100% to 50% for property valued over £1m.
In a development the NFU said demonstrated how the food sector had “joined forces like never before” signatories to the letter include giants of the dairy and livestock sectors, from Yeo Valley to ABP, Arla, Müller, Dunbia, Kepak, Cranswick, Dovecote Park, 2 Sisters and Pilgrim’s Europe.
The manufacturers are joined by the likes of the PTF, Dairy UK and the Northern Ireland Food & Drink Association, alongside Asda, M&S, Waitrose, Lidl, Sainsbury’s, Tesco, Aldi, Co-op and Morrisons in their opposition to the policy – which is due to be introduced in April 2026.
The coalition warned that removing the 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”.
The letter also highlighted “the barriers the changes could cause for boosting growth and productivity in the sector and tackling diet-related health issues”, the NFU 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,” said NFU president Tom Bradshaw.
“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 the Treasury to listen and take action?”
Scrapping “critical” Inheritance Tax reliefs not only affected family-run farms, but they stood to have “far-reaching consequences for the whole industry, from food processors to supermarket retailers”, Bradshaw warned.
Read more: Can farmers pitch a middle ground in Rachel Reeves’ tax plan?
“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.”
When one link in a supply chain, the link producing the raw materials, had a crisis of confidence and had 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”, he added. “Is this the vision for economic growth the country was promised?”
The Chancellor had said she had seen no alternative proposals put forward, yet there had been solutions put forward by tax experts and Labour MPs, Bradshaw stressed.
“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.”
The Treasury has so far refused to budge on the rollout of the policy, telling The Grocer last week it remained “committed” to changing APR and BPR thresholds next year.
This came despite AHDB research showing some three quarters of farm businesses could be impacted by the changes and the NFU last week committing to further protest action this month via a “campaign moment” in London and support for a planned rally in March.
Elsewhere, more than 45 Labour MPs this week wrote to the CEO’s of the UK’s biggest supermarkets, demanding they do more to tackle so-called ‘farmwashing’ or the use of fake farm brands to give shoppers the impression that their products come from British family farms.
They also called for more supply chain fairness, echoing concerns voiced by Riverford founder Guy Singh-Watson last month, that the recent support of supermarkets for farmers in the IHT row was “in contrast to farmers’ and growers’ commercial dealings with you”.
Against this febrile backdrop, the government on Friday also announced the launch of a “national conversation” on land use via a consultation under its Plan for Change.
Its new Land Use Framework would “provide the principles, advanced data and tools to support decision-making by local government, landowners, businesses, farmers, and nature groups to make the most of our land”, Defra said. The consultation document suggests a potential reduction in the range of 1% to 9% in land use for agriculture needs.
AHDB said there would need to be “careful consideration” on the longer-term effect of such changes on food security and the potential financial impact on farmers.
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