Farming leaders and suppliers are warning that Chancellor Rachel Reeves’s inheritance tax on farming assets exceeding £1 million could undermine Britain’s food security, making the UK more dependent on foreign imports.
Senior business figures, including Nigel Murray, managing director of Booths supermarket, have voiced concerns that the tax changes could erode incentives for domestic food production, potentially leading to higher supermarket prices and reduced self-sufficiency.
Murray, whose supermarket sources 60% of its products from British farmers, stressed that while the impact may not be immediate, “over time there is a real risk that domestic food production could be eroded.” He noted that increased reliance on imports would bring challenges related to environmental impact, animal welfare standards, and costs.
The National Farmers Union (NFU) president, Tom Bradshaw, criticised the tax changes, warning that they may force family farms to sell off assets, threatening the next generation’s ability to sustain farming operations. Bradshaw expressed concern over long-term food security, adding that “every penny saved by the Chancellor comes directly from the next generation having to break up their family farm.”
ABF, the parent company of British Sugar, echoed these sentiments, with CEO George Weston calling the tax a blow to the farming community. He urged policymakers to place greater importance on food security and UK agricultural production. The NFU is pressing for discussions with Sir Keir Starmer and Rachel Reeves, with members of the Labour Party also encouraging dialogue to address farmers’ concerns.
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