Rachel Reeves budget dealt another blow as supermarket giant stands by farmers

A major UK supermarket has made a remarkable  intervention against Rachel Reeves’ Budget by saying they stand with farmers against the hated new inheritance tax.

In her October Budget, Ms Reeves cancelled the exemption for inheritance tax for farms and agricultural assets worth more than £1 million, meaning they will be liable to a 20% levy from April next year.

Farmers have reacted with fury at the sweeping measures which they claim will affect over 70,000 farms in the UK, potentially stopping families being able to pass down properties which they have farmed for generations.

Now supermarket Morrisons has thrown its weight behind the farmers, with the Head of Agriculture, Fisheries and Sustainable Sourcing at the firm posting a video on X today (January 11) with the caption: “It’s tough times for farmers. At Morrisons, we’re with you”.

Sophie Throup appeared in a Morrisons branded video speaking to camera farmland in the background. She said: “Hi my name’s Sophie Throup, I head up agriculture for Morrisons and we’re farmers at home here in Yorkshire.

“We want to send a message of support today for the whole of the farming community, 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.”

Ms Throup added that Morrisons had been “raising these concerns at the highest levels of government since November last year”, adding: “And we will continue to do so.

“We know it’s important, we are with you, we are here to help you… we are here to help.”

According to the National Farmers Union, Ms Throup joined Morrisons in 2017.

Sharing Ms Throup’s video on X, James Heale, Political Correspondent for the Spectator, wrote: “Striking intervention from supermarket giant Morrisons, backing farmers infuriated about the Budget.”

Speaking to the BBC, the Liberal Democats Environment, Food and Rural Affairs spokesperson Tim Farron previously branded the move to start taxing farmers inheritance tax as “incredibly stupid”.

He said: “The only way that people can pay the inheritance is get rid of the farm – so corporates buy it, it’s cruel, it’s unfair, it’s also incredibly stupid.”

NFU President Tom Bradshaw, who has repeatedly spoken out against Ms Reeves’ plans, he said: “To launch a policy this destructive without speaking to anyone involved in farming beggars belief.”

Defending her policy, Ms Reeves has said she believes her decision to hammer farmers with a new tax was a “fair deal”.

She told GB News: “This government had to make a number of difficult decisions in the Budget last month to put our public finances back on a firm footing, difficult decisions on spending, on welfare and on tax.

“I would just say this, around agricultural property relief. If you’re a couple who own a farm, including a home on the farm, you can pass on £3m tax free to the next generation… I think this is a fair deal for farmers, whilst also ensuring that we bring in the money to get our public finances back on a firm footing.”