Food Tax Fiasco: Farmers and Grocers Clash Over Inheritance Tax
Short version: Big names in grocery – Lidl and Tesco – have sent a fierce warning to the Chancellor about a new inheritance‑tax scheme that could spell trouble for hundreds of family farms, possibly ending the UK’s food security. Talk about a battle for the future of our plates!
Sticking With the Math (and the Money)
- The Office for Budget Responsibility (OBR) flagged that Rachel Reeves’ levy might raise “enough” money – but what about the farms piling up the bills?
- US500m+ pledge over two years – the government claims to love farmers, but the tax changes are doing a reverse‑dance on their balance sheets.
Case in Point: Tesco & Lidl Take a Stand
So what do Tesco’s boss Ashwin Prasad and Lidl say?
- Prasad hammered that “the future of food security is on the line.”
- Lidl warned the same thing – farmers’ confidence could crumble if inheritance-tax tweaks squeeze out investments.
- Both companies said they set up a sign‑up cadence with the UK farming unions to ask the government to pause the policy until a full consultation kicks off.
“Let the Farmers Set the Rules” – A Tipping‑Point on Uncertainty
“Farmers desperately need more certainty,” said Prasad. “After years of changing rules, planning ahead or investing is like trying to juggle flaming swords in a hurricane.” This uncertainty matters because many small farms still rely on
- APR (Agricultural Property Relief) – the lifeline for farmland capital.
- BPR (Business Property Relief) – the safety net for farm expansions.
What the Co‑Op and Farmers’ Union Are Saying
The Co‑Op wrote to the relevant government departments, basically saying: “Look, we’re concerned, and we want a rethink.” They’re also signing an urgent letter from UK farming unions to push the government to reassess the tax changes.
Government’s Counter‑Pitch
A spokesperson said scores heard: “We’re steadfast in supporting farmers – a £5 billion boost in the farming budget over the next two years, more sustainable food dollars, and a long‑term 25‑year roadmap to make the sector profitable.” They’re still standing on their ground but looking for a pot‑of‑gold solution that balances taxes with field income.
Bottom Line: Who Wins?
Will the government pause the policy? Will farmers get relief? Or will the tax law roll around and turn family farms into plant‑based “investment” loopholes? Only time will tell – meanwhile, this should be good news for grocery lovers who fear their smoothies might drain out of the fridge for good. Stay tuned, foodies!
