Wed, 22 Jan 2025

Tesco, Aldi and Lidl hit back at farm inheritance tax

Tesco, Aldi and Lidl call for rethink of inheritance levy announced in Budget
Major UK supermarkets, including Tesco, Aldi, and Lidl, have joined forces with Asda, Morrisons, and Marks & Spencer to voice their concerns over government tax changes that could impact British farmers. The supermarkets, which make up around 45% of the UK's grocery market, are urging the government to pause the introduction of inheritance tax on farms worth over £1m. They claim that this change will hinder food security and investment in the farming sector. The supermarkets have expressed their support for the National Farmers Union's (NFU) calls for a full consultation before implementing the policy. Tesco's chief commercial officer, Ashwin Prasad, said that the UK's future food security is at stake and that the government should consider delaying the introduction of inheritance tax on farms worth over £1m. The Office for Budget Responsibility has also expressed concerns about the potential impact of the tax changes on farmers' investment. The OBR estimated that introducing the tax would raise around £500m a year by 2029, but noted that this estimate was highly uncertain and may not accurately reflect the actual outcome. Aldi stated that they need a "farming sector that can confidently invest in its future and continue to produce high-quality British food." Lidl echoed similar concerns, saying that the changes could hold back investment needed for a resilient, productive, and sustainable British food system. Marks & Spencer also released a statement supporting the NFU's call for a pause on the policy. The government has been contacted for comment but has not yet responded to the supermarkets' concerns.
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