Tesco Joins Supermarket Revolt Against Labour’s Farm Tax


CP

Britain’s biggest supermarket Tesco has blasted Rachel Reeves’ inheritance tax hike on farmers – warning it could wreck the nation’s food security and must be scrapped.

The retail giant has urged the Labour Government to rethink its plans to slap a 20 per cent inheritance tax on farms worth more than £1m, saying it could cripple British agriculture.

Tesco’s big boss Ashwin Prasad warned: “This is not just a debate about individual policies – the UK’s future food security is at stake.”

In a show of unity, Aldi and Lidl have also joined the fight, piling pressure on ministers to ditch the tax raid.

The trio of retail giants – which control nearly half of Britain’s grocery market – say the plan could force farmers to flog their land or even shut up shop for good.

Backing the call to scrap the policy, Aldi said: “We all need a farming sector that can confidently invest in its future and continue to produce high-quality British food.”

Meanwhile, Lidl warned the tax bombshell will “hold back the investment needed to build a resilient, productive and sustainable British food system.”

FARMERS IN CRISIS

The backlash comes after Reeves announced the tax shake-up in last year’s Budget, set to kick in from April 2026.

Farms were previously exempt from inheritance tax, but Labour’s move will see agricultural estates worth over £1m slapped with a 20 per cent charge.

Furious farmers have hit back, warning the tax will drive them to the wall – and they’ve already taken to the streets in tractor protests outside Westminster.

Tesco’s Mr Prasad said farmers “desperately need more certainty” to plan their future, adding: “After years of policy change, it has been harder than ever for them to plan ahead or to invest in their farms.

“It’s why we’ll be supporting the National Farmers Union’s calls for a pause in the implementation of the policy, while a full consultation is carried out.”

GOVERNMENT UNDER PRESSURE

The Government insists the tax changes will only hit a small number of wealthy estates, claiming that just 500 farms a year will be affected.

But farming chiefs aren’t buying it. The National Farmers Union (NFU) reckons 75 per cent of British farms could be hit by the tax grab.

The Central Association of Agricultural Valuers says it could impact five times more farmers than ministers admit – with up to 2,500 a year facing massive tax bills.

With Asda, Morrisons, and Sainsbury’s also voicing concerns, pressure is mounting on Labour to U-turn before it’s too late.

Farmers are now urging ministers to listen before it’s too late – warning the policy could devastate British farming for generations to come.

Will Rachel Reeves back down – or will farmers be left counting the cost?


This article (Tesco Joins Supermarket Revolt Against Labour’s Farm Tax) was created and published by Conservative Post and is republished here under “Fair Use” with attribution to the author CP

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RELATED

Farm Tax Raid Puts Britain’s Food Security at Risk, Says Tesco

 

WILL JONES

Rachel Reeves’s tax raid on farmers is putting Britain’s food security at risk and must be paused, Tesco has warned, as the backlash to the controversial policy that has brought farmers to the streets mounts. The Telegraph has more.

Britain’s biggest supermarket said the Chancellor should halt the introduction of inheritance tax on farms worth more than £1 million in order to safeguard British agriculture.

Ashwin Prasad, Tesco’s Chief Commercial Officer, wrote in a blog: “This is not just a debate about individual policies – the UK’s future food security is at stake.”

Tesco was one of three major supermarkets to call for a rethink of the policy on Wednesday, with similar warnings issued by Aldi and Lidl in an unusual show of unity.

It came as the Office for Budget Responsibility (OBR), the Government’s fiscal watchdog, suggested that farmers were likely to slash investment because of the tax raid and cast doubt on how much money would be raised.

Tesco, Aldi and Lidl collectively represent around 45% of the British grocery market and their warnings about the impact of Labour’s tax raid significantly raises pressure on the Government.

Asda and Morrisons have already backed farmers in the row. Sainsbury’s has urged Ministers to “listen to the concerns of farmers about the tax changes”.

Under plans announced by the Chancellor in her Budget last year, farms worth more than £1 million will be liable for 20% inheritance tax from April 2026. Agricultural businesses were previously exempt from death taxes.

The policy has provoked a huge backlash from farmers, who claim it will force them to sell off or shut down businesses. Tractors descended on Westminster in November in protest over the tax raid.

Mr Prasad said Tesco “fully understood” farmers’ concerns and said they “desperately need more certainty”.

He said: “After years of policy change, it has been harder than ever for them to plan ahead or to invest in their farms. It’s why we’ll be supporting the National Farmers Union’s calls for a pause in the implementation of the policy, while a full consultation is carried out.”

In a further blow for Ms Reeves, the OBR said there is a risk that the amount raised by the tax will fade over time as landowners adapt following its introduction in April next year – although older farmers would be unable to escape the consequences.

Worth reading in full.

Via The Daily Sceptic

Featured image: x.com

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