Dairy sector and supply chain urge Treasury for IHT changes

Major milk processors, including Arla, Muller, Organic Herd, and First Milk and industry bodies such as Dairy UK and the Royal Association of British Dairy Farmers (RABDF) have all joined the NFU’s call for a rethink to changes to inheritance tax reliefs.

An open letter signed by more than 50 key businesses in the food supply chain, including all the major supermarkets, has been sent to the Treasury warning of significant risks to long-term food supplies in the UK.

At Dairy Tech on Wednesday, 5 February, NFU president Tom Bradshaw said that more than 20 dairy processors with a combined turnover of over £7bn had signed the letter, which asks the Treasury to engage properly and consult on the future proposals on inheritance tax.

See also: Accountancy group challenge Treasury claims on IHT

“No companies that have signed this have taken it lightly,” he said. “Getting involved in politics is a big decision.”

Mr Bradshaw added: “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.”

RABDF chairman Robert Craig, who signed a pledge to end the “family farm tax” alongside Mr Bradshaw at Dairy Tech, urged the government to pause the implementation of the inheritance tax changes.

Mr Craig said: “Since the Budget last October, farmer confidence has plummeted.

“Such a sudden and far-reaching policy change means that many farmers have had to pause and rethink investments indefinitely, not wanting to increase their inheritance tax liability, which in many cases can’t actually be afforded unless the business is sold.”