Marks & Spencer wades into farming row with Labour tax grab criticism

M&S warned that UK agriculture is already under a great deal of pressure and any added strain on the next generation of farmers could exacerbate food security issues.

From April 2020, inherited agricultural assets worth more than £1m will be taxed at a rate of 20% – half the usual rate, but a significant increase from existing rates on agricultural properties.

Speaking to BBC Wales, M&S head of agriculture and fisheries Steve McLean said changes would “definitely” be a “deterrent for young people” who are considering a career in farming and agricultural work.

He added that M&S was “very, very clear” that agricultural work and property should be treated differently by the government.

“The whole taxation system was devised to recognise that the margins of profitability in agriculture weren’t like other industries,” he said. “That’s why you had a difference in how the inheritance tax approach was set up.”

He also warned that changes to the policy, announced by chancellor Rachel Reeves in November, would “impact confidence” in UK farming.

“They definitely will be a deterrent for young people coming into the industry and we want to see a vibrant, viable farming structure where young people can come in and make a good living and be proud of what they do,” he added.

“Being able to give greater surety, greater security is going to be key to viable farming structure going forward.”

A government spokesperson said: “Our commitment to farming and food security is steadfast, which is why we’ve allocated a record £11.8bn to sustainable farming and food production over this parliament and appointed former NFU president Baroness Minette Batters to recommend new reforms to boost farmers’ profits.”

They also insisted that “three-quarters of estates will continue to pay no inheritance tax at all”, adding that “the remaining quarter will pay half the inheritance tax that most people pay, and payments can be spread over 10 years, interest-free.”