Led by the NFU, a letter from the food supply chain, which includes all major supermarket retailers, has voiced concerns about the government鈥檚 plan to scrap scrap APR and BPR (Agricultural Property Relief and Business Property Relief).
鈥淭hese changes will mean that investment declines, that productivity flatlines or even begins to fall and that in turn this influences our own long-term investment decisions,鈥� the letter states. 鈥淪uch an outcome would not be in the interests of our consumers, our workforce or the communities where we operate.鈥�
The coalition warns that removing these reliefs threatens the long-term stability of the nation鈥檚 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.
鈥楥horus of concern鈥�
NFU President Tom Bradshaw said: 鈥淲e have made our views on this awful family farm tax very clear. Now so have 57 other businesses across the food supply chain.
鈥淭his abhorrent policy has united farming and the whole of the supply chain like never before.
鈥淗ow loud does the chorus of concern around the policy have to be for Treasury to listen and take action?
鈥淪crapping 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.鈥�
鈥�Is this the vision for economic growth the country was promised?鈥�
NFU President Tom Bradshaw
Tom warned that the policy risks destabilising an industry that is already facing global instability, a changing climate, high input costs and a growing global population to feed.
Alternative proposals
Tom added: 鈥淲hen 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 鈥� an impact that will eventually be felt on supermarket shelves.
鈥淚s this the vision for economic growth the country was promised?鈥�
The letter emphasises the knock-on effect the changes could have: 鈥淚f we are to build our food resilience, tackle diet-related health issues, develop a sustainable food system and boost growth and productivity then we need all links of the supply chain to have the confidence to play their part.鈥�
Signatories noted that 鈥渟ince 30 October, we have seen the confidence of our farmers and growers plummet, already embattled by one of the wettest years on record鈥�.
鈥淭he investments that we need them to make for the future of sustainable food production have all but dried up with the planned reduction in Agricultural and Business Property Reliefs,鈥� the letter continues.
NFU President Tom Bradshaw called on the Chancellor to 鈥渉eed our calls to meet to discuss options and find a way forward out of this current mess鈥�, highlighting that solutions have been put forward by tax experts and Labour MPs.
Who signed the letter?
Signatories represent the food manufacturing industry which contributes 拢162 billion to the economy and supports more than 4.5 million jobs.
Scroll through the logos below to find out who has signed.
