Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Suppliers warn farming inheritance tax will jeopardise UK food security

by November 6, 2024
November 6, 2024
Suppliers warn farming inheritance tax will jeopardise UK food security

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.

Recent data highlights the vulnerability of UK cereal production to extreme weather, underscoring the importance of agricultural resilience. Previously, agricultural land enjoyed inheritance tax exemptions to promote generational continuity in farming. However, Reeves’s new rules, effective from April 2026, will impose a 20% tax on farming assets over £1 million, affecting asset-rich but cash-poor farms that may struggle to meet the tax liability without selling parts of their estates.

The Treasury maintains that the policy will impact only a minority of farms, but the NFU estimates the tax could affect up to 75% of British food production. The government argues that the new tax structure balances support for family farms with funding for critical public services.

In addition, Labour’s budget quietly closed a vehicle tax loophole for pickup trucks, impacting agricultural workers who depend on vehicles like the Ford Ranger for their operations. With tax bills on these vehicles expected to rise sharply, farmers like Jon Watt in Suffolk report adjusting their investment plans amid growing uncertainty over agricultural policy.

The policy changes have sparked a national debate on food security, with some industry leaders claiming that the tax risks driving closures among Britain’s estimated 140,000 family businesses. Family Business UK chairman Sir James Wates criticised the tax as “economic illiteracy,” cautioning that it could lead to business closures and job losses, while the Treasury argues that only a small number of businesses will be affected.

Read more:
Suppliers warn farming inheritance tax will jeopardise UK food security

0
FacebookTwitterGoogle +Pinterest
previous post
Trump White House victory called ‘the greatest political comeback in American history’
next post
World leaders react to Trump victory ‘on history’s greatest comeback’

You may also like

Flybe ceases trading with all scheduled flights cancelled

January 29, 2023

Major Record Labels Launch Landmark AI Copyright Lawsuit

June 25, 2024

Ecommerce: The Competitive Landscape & How Performance Marketing...

March 21, 2023

Further UK rail strikes announced in run-up to...

December 1, 2022

The Role of Detailed Financial Annual Reports in...

January 27, 2025

Czech tycoon Karel Komarek and the UK National...

November 11, 2024

Jeremy Hunt Stresses Continuation of Free Childcare Plan...

March 4, 2024

Jobs axed at second-fastest pace since global financial...

February 21, 2025

Why it is important to use sustainable materials...

February 22, 2023

Banks launch £5M mortgage support campaign following deal...

July 31, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,568)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved