In a setback for Prime Minister Sir Keir Starmer, one of Britain’s largest supermarkets has announced its public support for farmers opposed to the government’s planned inheritance tax (IHT) reforms.
Sophie Throop, head of farming at Morrisons, posted a video message on X (formerly Twitter) declaring the retailer’s solidarity with farming communities, which are preparing to protest across the country on Friday over what they call a “devastating” tax raid on family farms.
The new tax, which comes into force in April 2026, will impose a 20 per cent inheritance tax on agricultural properties worth more than £1 million. Although this represents half the standard IHT rate of 40 per cent, the move has raised concerns that small family-run farms may be forced to sell their land or face crippling financial burdens. Under current rules, individuals can transfer their property tax-free if they live for another seven years, but the new measure would significantly tighten exemptions for agricultural property.
Ms Throop said Morrisons had raised “concerns at the highest level of government” since the policy was announced last autumn, telling farmers she “understood their anger and frustrations” and inviting them to contact her directly. While many welcomed the supermarket’s intervention, others wondered whether it was more of a PR gesture than a genuine desire to fight on behalf of farmers.
Mo Metcalfe-Fisher, director of external affairs at the Countryside Alliance, hailed the supermarket intervention as a “major development” in attempts to persuade both Sir Keir Starmer and Chancellor Rachel Reeves to reconsider the proposal. But some farmers remain skeptical. Clive Bailey, founder of online platform The Farming Forum, pointed out that supermarkets had traditionally been tough negotiators on prices and questioned their true motives.
The government insists it has no plans to back down. A government spokesman said that under its “fair and balanced” reforms, farmers would still benefit from a reduced IHT rate of 20 per cent, paid interest-free over a decade, while pointing to a £5bn investment in farming over two years. . Despite these assurances, tensions remain high, with protests scheduled and the National Farmers Union confirming it has put pressure on retailers to push for a more positive outcome. It remains to be seen whether Morrisons’ offer of support will translate into actual policy change.
Jimmy Young
Jamie is an experienced business journalist and senior reporter at Business Matters, with over a decade of experience reporting on UK SME business. Jamie holds a degree in Business Administration and regularly participates in industry conferences and workshops to stay at the forefront of emerging trends. When Jamie is not reporting on the latest business developments, he is passionate about mentoring up-and-coming journalists and entrepreneurs, sharing their wealth of knowledge to inspire the next generation of business leaders.
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