Labour’s decision to raise taxes on farmers and businesses has been slammed by one of the country’s largest supermarkets just months before looming changes to National Insurance.
A major supermarket retailer has issued its support to Britain’s farmers in response to the Labour Government’s proposed inheritance tax (IHT) changes, which have provoked significant backlash in recent months.
During her Autumn Budget last year, Chancellor Rachel Reeves confirmed agricultural estates valued over £1million would be considered liable for the HM Revenue and Customs (HMRC) tax. Morrisons now appears to be entering the debate over looming tax raid.
IHT is a levy on the estates of individuals who have passed away. It is charged at 40 per cent on estates valued above £325,000 threshold, however there are some exceptions.
In October 2024, Reeves confirmed farm estates valued above £1million will be slapped with a 20 per cent inheritance tax charge and pensions would now be considered liable for the levy. These changes will not be implemented until April 2026.
Sophie Throup, the head of agriculture at Morrisons, shared her support for the farming community in a video posted to social media in the wake of the looming tax raid.
Do you have a money story you’d like to share? Get in touch by emailing money@gbnews.uk.
Morrisons is backing farmers in the wake of the inheritance tax raid
GETTY / PA
She shared: “We understand your anger and your frustrations at the inheritance tax – and we’re with you. 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. We know it’s important, we are with you, we’re here to help you. If you want to talk to me, please message me. We are here to help.”
Farmers have taken to the streets against the tax overhaul with protests erupting outside Westminster. Further protests are planned to take place outside grocers on later this week (January 17).
This intervention from Morrisons is the first of any supermarket giant in the UK when it comes to inheritance tax, however retailers have been outspoken about other changes announced in the Autumn Budget.
Business owners are preparing to pay more tax over the next year
GETTY
Reeves is also planning to raise the National Insurance (NI) contribution rate for employers from 13.8 per cent to 15 per cent, as well as raise the rate paid by the National Living Wage.
Last November, more than 70 retailers signed an open letter to Prime Minister Keir Starmer urging him to reverse the Chancellor’s hike to NI, including supermarkets such as Sainsbury’s, Tesco and Asda.
The letter was coordinated by the British Retail Consortium (BRC) and warned that “the sheer scale of new costs and the speed with which they occur create a cumulative burden” on the sector.
These looming tax changes, which include packaging levies and minimum wage increases, will cost the retail industry £7.06billion annually, according to the group of retailers.
The BRC has asked to meet with the Prime Minister – they argue this would help businesses adapt and “greatly mitigate their harmful effects on high streets and consumers.”
Addressing job loss concerns, Starmer emphasised that difficult Budget decisions were made without impacting workers’ take-home pay. “They will not be paying more (in tax) and they’ll see that month on month in their pay slip,” he said.
LATEST DEVELOPMENTS:
Rachel Reeves has targeted pensions and farmers with inheritance tax changesGB NewsOn the changes to IHT, a HM Treasury spokesperson said: “Most estates will continue to pay no inheritance tax. The first £325,000 of any estate can be inherited tax-free, rising to £500,000 if the estate includes a residence passed to direct descendants, and £1million when a tax-free allowance is passed to a surviving spouse or civil partner.
“We continue to incentivise pensions savings for their intended purpose of funding retirement instead of them being openly used as a vehicle to transfer wealth.”
A Government spokesperson added: “We delivered a once-in-a-parliament Budget to wipe the slate clean and deliver the stability businesses so desperately need. We have ensured more than half of employers will either see a cut or no change in their National Insurance bills.
“We are bringing back political and financial stability, creating the conditions for economic growth through investment and reform.”
+ There are no comments
Add yours