The food industry is urging the Treasury to reconsider planned inheritance tax changes, warning that the removal of key tax reliefs could disrupt the long-term stability of food supply chains.
The National Farmers’ Union (NFU), alongside major supermarket retailers, has raised concerns over the government’s plan to eliminate Agricultural Property Relief (APR) and Business Property Relief (BPR). Industry leaders argue that these changes may hinder investment in food production and impact the sector’s resilience.
The food manufacturing industry contributes £162 billion to the economy and supports over 4.5 million jobs. Stakeholders caution that removing these tax reliefs could create financial challenges for family-run farms, food processors, and retailers, ultimately affecting food availability and pricing.
NFU President Tom Bradshaw emphasized the significance of maintaining policies that support long-term food security.
“Removing these reliefs not only affects farms but could have a ripple effect throughout the entire supply chain, from production to retail,” Bradshaw said.
Industry leaders have also highlighted potential barriers to growth, productivity, and efforts to address diet-related health concerns.
“As food producers face global challenges, high input costs, and a changing climate, policies that undermine confidence in the sector could have lasting consequences,” Bradshaw added.
With strong opposition from key players in the food and retail industries, the NFU and other stakeholders are calling on the Chancellor to engage in discussions to explore alternative solutions.
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