Food Industry Warns Treasury Of Risks To Supply Chains

The food manufacturing industry, which contributes £162 billion to the economy and supports over 4.5 million jobs, has joined forces like never before to urge the Treasury to rethink changes to inheritance tax announced at the Budget. Led by the NFU, a letter from the food supply chain, which includes all major supermarket retailers, has voiced concerns about the government’s plan to scrap Agricultural Property Relief (APR) and Business Property Relief (BPR).

The coalition warns that removing these reliefs threatens the long-term stability of the nation's food resilience, which relies on continued investment to futureproof sustainable food production, at a time when the government has stated that food security is national security. It also highlights the barriers the changes could cause for boosting growth and productivity in the sector and tackling diet-related health issues.

NFU President Tom Bradshaw said:

“We have made our views on this awful family farm tax very clear. Now so have 57 other businesses across the food supply chain. 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?"

“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."

“Faced with a backdrop of global instability, a changing climate, high input costs and a growing global population to feed, this policy risks destabilising an industry that is vital to feeding the nation and one that supports millions of jobs. Because 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?

“The Chancellor has said she has seen 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.”

Signatories from the food industry include:

NFU

NFU Cymru

NFU Scotland

UFU

Morrisons

Asda

Marks & Spencer

Waitrose

Lidl

Sainsbury’s

Tesco

Aldi

Co-op

Arla

Muller

Yeo Valley

ABP

Rodda’s

County Milk

Belton Farm

Paynes Dairy

Organic Herd

Long Clawson

RABDF

PTF

Dairy UK

First Milk

Meadow

Cotteswold

Dunbia

Kepak

Pickstock (Telford)

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

Photo: NFU President Tom Bradshaw signing a Stop the Family Farm Tax poster