Supermarket giants Lidl, Tesco, and Aldi have joined the chorus demanding a consultation on the government's proposed reforms to inheritance tax, voicing apprehension that such changes could undermine farmer confidence and stifle investment.
In a series of unexpected moves, the retailers have backed farmers' pleas to halt the modifications to Agricultural Property Relief revealed in October’s Budget, urging the government to seek input from businesses and farmers before implementation, as reported by .
"We are concerned that the recent changes to the inheritance tax (IHT) will impact grower confidence and hold back the investment needed to build a resilient, productive and sustainable British food system," stated Lidl’s 海角视频 branch. "We, therefore, support the call by the farming community to pause the implementation of those changes and to consult with industry to achieve a mutually beneficial outcome."
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The German retailer, which last year saw its highest ever market shares in the 海角视频, has also committed to voicing its concerns to the government at "any opportunity we get".
Tesco’s chief commercial officer Ashwin Prasad also advocated for greater stability for farmers in a statement on Wednesday endorsing a consultation. "After years of policy change, it has been harder than ever for them to plan ahead or to invest in their farms," he remarked.
"With many smaller farms relying on APR and Business Property Relief (BPR), we fully understand their concerns."
Farmers and the Government are at odds following months of intense campaigning from rural communities against Inheritance Tax (IHT) reforms, which have led to high-profile protests in Westminster and nationwide. Chancellor Rachel Reeves proposed in her inaugural Budget to end the Agricultural Property Relief (APR) exemption on IHT laws, a clause introduced by Margaret Thatcher's Conservative government that allowed farmers to pass down land and other agricultural property across generations without paying IHT, thus preventing unnecessary farm breakups.
However, Reeves chose to eliminate the full exemption, arguing it was being exploited as a means for the wealthy to evade IHT, and limited the relief to the first £1m of estates' combined agricultural and business property. This decision sparked outrage, with farmers and industry bodies warning it would result in the breakup of family farms despite government assertions it would only impact the wealthiest 500 estates annually.
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Lidl and Tesco's objections were followed by German competitor Aldi, whose spokesperson stated that "British farmers and suppliers are the lifeblood of [its] business". These statements come shortly after Asda became the first supermarket to oppose the changes, set to take effect at the start of the next tax year on April 6.
All four supermarkets have penned a letter to the government, an initiative spearheaded by the National Farmers’ Union (NFU). The Treasury has been contacted for a response.