SUPERMARKET chains Asda and Morrisons have joined those lobbying the UK Government to rethink its stance on inheritance tax, affecting a number of UK potato growers.
The government’s plans to cap vital inheritance tax reliefs for family growers and farmers led to industry protest, with many claiming the government’s inheritance tax (IHT) changes would cripple family growing businesses. The changes are set to affect agricultural estates valued over £1m. The changes mean farming estates worth over £1m will be liable for 20% inheritance tax from April 2026.
Morrisons’ Head of Agriculture, Sophie Throup, recently took to social media to back the farming community’s opposition to the IHT change, describing the measures as a threat to small, family-run farms.
“We understand your anger and your frustrations at the inheritance tax – and we’re with you,” she said. “We share your concerns about the long-term future the inheritance tax is going to have on farms – particularly smaller, family farms – and we know that you want something done about it. We’ve been raising these concerns at the highest level of Government since November last year and we will continue to do so.”
Morrisons has faced difficulties of its own in recent months. The Retail Gazette recently reported that the supermarket faced operational chaos over the Christmas period, including supply chain disruptions and issues with its loyalty program, which impacted customers’ ability to access discounts.
Asda, the UK’s third largest supermarket, has now also spoken out about plans to cap IHT reliefs for farmers, stating that family farmers are a ‘vital part of our supply chain’. In a recent statement, it said it had been “raising concerns with the government”, going on to add: “Farming is a vital part of our supply chain. We need a confident farming sector which is able and willing to invest in its future.”
CJ Fountain & Son, based near Whittlesey, Cambridgeshire has been supplying Asda with high quality potatoes since 1968. The farm is now third generation owned, with James Fountain taking the reins from his father David.
The supermarkets’ support has been welcomed by the Country Land and Business Association (CLA).
CLA President Victoria Vyvyan said: “It is not just the farming industry that feels angry and let down by the government’s decision to cap vital inheritance tax reliefs, and it has been heartening to receive such widespread support from the public, other sectors, and businesses. The backing of Morrisons and Asda is welcome.”
On what the government should now do, Victoria added: “The government has dug itself into a deep hole by targeting family farms and businesses, and must now pause, listen and consult.
“The CLA stands ready to provide solutions that work for both farmers and the government, but if the Treasury refuses to reconsider, it risks not only damaging food production but could trigger mass job losses and hit its own tax revenues.”
