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.
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.”
Signatories from the food industry include:
NFU
NFU Cymru
NFU Scotland
UFU
Morrisons
Asda
Marks & Spencer
Waitrose
Lidl
Sainsbury’s
Tesco
Aldi
Co-op
Arla
Muller
Yeo Valley
ABP
Rodda’s
County Milk
Belton Farm
Paynes Dairy
Organic Herd
Long Clawson
RABDF
PTF
Dairy UK
First Milk
Meadow
Cotteswold
Dunbia
Kepak
Pickstock (Telford)
Myton Food Group
Cranswick
Dovecote Park
2 Sisters Food Group
Puffin Produce
Castell Howell
Foyle Food Group
C&J Meats
WD Meats
Hewitt Meats
Pembrokeshire Creamery
Leprino
South Caernarfon Creameries
Laeth y Llan Cyf/Village Dairy
Calon Wen Dairy
Crediton Dairy
Bawnbua Foods NI
NIMEA
Dale Farm
Fane Valley
Ready Eggs
Northern Ireland Food and Drink Association
Pilgrims
Photo: NFU President Tom Bradshaw signing a Stop the Family Farm Tax poster
