Supermarkets and Farmers Unite Against Tax Hike on Family Farms

A broad coalition of leading British supermarkets, including Tesco, Sainsbury’s, Morrisons, and Asda, along with other prominent retailers like Lidl, Aldi, Co-op, and Marks & Spencer, has voiced strong opposition to a recent tax-hiking Budget. They argue that the proposed removal of inheritance tax exemptions for farms valued over £1m is a dangerous move that will destabilize the nation’s food supply chain. This policy, which is seen as a "raid" on family farmers, has drawn criticism for potentially forcing family-run farms to sell their assets, thereby threatening the stability of the agricultural sector.

The National Farmers Union (NFU) has organized a significant pushback against the chancellor’s decision, claiming that the tax change endangers the long-term sustainability of British food production. NFU president Tom Bradshaw emphasized that the united voice of farmers and food industry stakeholders reflects a widespread concern, pointing out that the measure could disrupt everything from food processing to supermarket retailing. He is urging the Treasury to reconsider the policy in light of its profound economic and social impact, especially in a period marked by global instability and rising production costs.

The controversy has prompted severe criticism from various corners, including warnings about the potential electoral fallout for the ruling party. Protesters and industry experts alike have highlighted that the new threshold might stifle investment and growth in the farming community, while alternative proposals have been put forward to protect small family farms and target tax avoidance by wealthier landowners. Amid these calls for reform, a government spokesperson defended the budget measures, citing commitments to significant investment in farming and reforms designed to lower the effective tax rate for estates, asserting that these steps provide a balanced approach to boosting domestic food production.