The Co-op Group has joined a list of retailers calling on the government to reconsider its controversial change to inheritance tax on UK farms, announced in last year’s budget by chancellor Rachel Reeves.
Under Reeves’ changes, Agricultural Property Relief (APR) and Business Property Relief (BPR) – which had allowed farmers to pass on their farmland and associated business assets, tax free – will be capped at £1m pounds – so assets over that value will be subject to inheritance tax at 20%.
Supporters of the change point to abuse of the tax relief by land speculators but farmers, who have mounted protests against the move, say it will force many family farms to sell up.
A number of retailers – including the Group alongside Lidl, Tesco, M&S, Asda, Aldi, Morrisons and Booths – has now backed calls by the National Farmers Union for the policy to be put on hold while the government reconsiders.
“We have agreed to sign the UK Farming Unions letter going to the government imminently, to call for a reconsideration of the proposed tax changes,” said the Group’s managing director Matt Hood.
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In a statement, he added: “Co-op is a long-term supporter of British farming. Indeed, we were the first and, at the time, only national UK grocer to switch to 100% British fresh and frozen own-brand protein, including when used as an ingredient in all our products – a commitment we continue to stand by today, and not a claim many others can make.
“By working so closely with British farmers, we know as an industry, they are facing many challenges, and we have seen first-hand the fear, anxiety and anger currently being felt.“
Hood said farmers “are the absolute backbone of the UK’s food supply”, making support for the sector vital.
“We will continue our long-term, significant commitment to the industry,” he added, “investing and spending hundreds of millions of pounds every year on protein, produce and dairy, ensuring our members and customers can carry on buying the multitude of amazing quality British products in our stores.”