In a setback for Prime Minister Sir Keir Starmer, one in every of Britain’s largest supermarkets has publicly thrown its assist behind farmers against the Authorities’s deliberate inheritance tax (IHT) reforms.
Sophie Throup, head of agriculture at Morrisons, posted a video message on X (previously Twitter) declaring the retailer’s solidarity with farming communities, who’re getting ready to protest nationwide on Friday over what they name a “devastating” tax raid on household farms.
The brand new levy, which comes into drive in April 2026, will impose a 20 per cent inheritance tax on farming estates valued over £1 million. Though that is half the usual 40 per cent IHT fee, the transfer has sparked fears that smaller, family-run farms might be compelled to unload land or face crippling monetary burdens. Underneath present guidelines, people can switch their estates tax-free in the event that they stay for one more seven years, however the brand new measure would considerably tighten reliefs for agricultural property.
Ms Throup mentioned Morrisons had raised “concerns at the highest level of government” for the reason that coverage was introduced final autumn, telling farmers she “understands your anger and frustrations” and alluring them to contact her instantly. Whereas many welcomed the grocery store’s intervention, others questioned whether or not it was extra of a public relations gesture than a real willingness to battle on farmers’ behalf.
Mo Metcalf-Fisher, exterior affairs director on the Countryside Alliance, hailed the grocery store’s intervention as a “major development” in makes an attempt to persuade each Sir Keir Starmer and Chancellor Rachel Reeves to rethink the proposal. Some farmers stay sceptical, nonetheless. Clive Bailye, founding father of on-line platform The Farming Discussion board, identified that supermarkets have historically been robust negotiators on costs and questioned their actual motives.
The Authorities insists it has no plans to again down. A spokesperson mentioned that beneath its “fair and balanced” reforms, farmers nonetheless profit from a decreased IHT fee of 20 per cent, payable interest-free over a decade, whereas pointing to a £5 billion funding in agriculture over two years. Regardless of these assurances, tensions stay excessive, with protests scheduled and the Nationwide Farmers’ Union confirming it has lobbied retailers to push for a extra beneficial consequence. Whether or not Morrisons’ present of assist interprets into precise coverage change stays to be seen.
Jamie Younger
Jamie is a seasoned enterprise journalist and Senior Reporter at Enterprise Issues, bringing over a decade of expertise in UK SME enterprise reporting.
Jamie holds a level in Enterprise Administration and usually participates in trade conferences and workshops to remain on the forefront of rising developments.
When not reporting on the most recent enterprise developments, Jamie is keen about mentoring up-and-coming journalists and entrepreneurs, sharing their wealth of data to encourage the subsequent era of enterprise leaders.
