The food manufacturing industry, worth '£162 billion to the economy' and supporting over '4.5 million jobs' have joined forces to urge the Treasury to rethink changes to Inheritance Tax (IHT) announced in the Chancellor's Autumn Budget.
Inheritance Tax
Led by the NFU, a letter from the food supply chain, which includes all four UK farming unions, major supermarket retailers, and processors across the sectors including the likes of Arla, Muller, Pilgrims, Leprino and many more, have voiced concerns about the Government's proposal to scrap Agricultural Property Relief (APR) and Business Property Relief (BPR)
The coalition of support from 57 different businesses across the agricultural sector, sends out a ‘warning' that the removal of the reliefs ‘threatens' the ‘long-term stability' of the nation's food resilience, which relies on ‘continued investment to futureproof sustainable production'.
READ NOW: Welsh Labour MP stands up for elderly farmers over family farm tax
Supply chain
NFU president Tom Bradshaw said: "This abhorrent policy has united farming and the whole of the supply chain like never before. How loud does the chorus of concern around the policy have to be for Treasury to listen and take action?
READ NOW: Hundreds of farm shops at risk of closing due to Budget proposals
"Scrapping critical inheritance tax reliefs not only affects family-run farms, but it stands to have far-reaching consequences for the whole industry, from food processors to supermarket retailers."
Mr Bradshaw warns this policy risks 'destabilising an industry' that is vital to feeding the nation and one that supports millions of jobs.
Crisis of confidence
He said: "When one link in a supply chain, the link that is producing the raw materials, has a crisis of confidence and has already all but stopped investment, it has an impact on the whole of the industry; an impact that will eventually be felt on supermarket shelves. Is this the vision for economic growth the country was promised?"
READ NOW: Treasury 'parked its tractor' in wrong place over family farm tax, says Iceland boss
Chancellor
Mr Bradshaw said the Chancellor has inferred there has been no alternative proposals put forward.
"Yet there have been solutions put forward by tax experts and Labour MPs. With large numbers of Britain's biggest manufacturing sector – food and drink – against this policy, it is time for the Chancellor to heed our calls to meet to discuss options and find a way forward out of this current mess," he said.
Signatories from the food industry include so far:
Farming unions: NFU,NFU Cymru, NFU Scotland, UFU
Supermarkets: Morrisons, Asda, Marks & Spencer, Waitrose, Lidl, Sainsbury's, Tesco, Aldi, Co-op
Processors, food manufacturers and industry bodies: Muller, Yeo Valley, ABP, Rodda's , County Milk, Belton Farm, Paynes Dairy, Organic Herd, Long Clawson, First Milk, Meadow, Cotteswold, Dunbia, Kepak, Pickstock ( Telford), RABDF, PTF, Dairy UK, Myton Food Group, Cranswick, Dovecote Park, 2 Sisters Food Group, Puffin Produce, Castell Howell, Foyle Food Group , C&J Meats, WD Meats, Hewitt Meats, Pembrokeshire Creamery, Leprino, South Caernarfon Creameries, Laeth y Llan Cyf/Village Dairy, Calon Wen Dairy, Crediton Dairy, Bawnbua Foods NI, NIMEA, Dale Farm, Fane Valley, Ready Eggs, Northern Ireland Food and Drink Association, Pilgrims
LISTEN NOW:
