More than 100 businesses have written to Keir Starmer urging him to “rethink planned changes to Inheritance Tax” ahead of the budget.
The open letter has 107 signatories, including major retailers such as Aldi, Lidl, Waitrose, M&S, and industry bodies including the NFU, Dairy UK and the British Egg Industry Council.
The letter outlines how the changes, which will see the 100% Inheritance Tax relief for agricultural and business property limited to the first £1m of value, are “unjust and unfair” and will cause “severe unintended consequences”.
NFU president Tom Bradshaw said he had “never known such an outpouring of anger and frustration from all sectors”, but despite this the government has continued to defend its policy.
“It has been evident the Treasury does not understand farming and has remained intransigent in its position despite many calling for change,” said Bradshaw. “As we have repeatedly pointed out, the policy as it is, is anti-growth.”
He added that the policy was stopping businesses and farms from investing and would leave many farming families forced to sell businesses to afford the tax bills.
The letter also points to several solutions that have been put forward by independent experts to mitigate the impact of the proposed changes on farming businesses.
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This open letter follows a public letter campaign, launched in late October, which has resulted in 13,000 letters sent to hundreds of MPs.
“Our message to the prime minister is clear,” he added. “We are just a week out from the budget; there is still time to do the right thing for British farming and rural businesses and consider the valid alternatives that have been proposed by the NFU and others.
“It is not too late to make changes which will raise the money the government needs while safeguarding the future of family farms.”
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