M&S urges ministers to reconsider farm tax

Marks & Spencer has appealed to the government to reconsider proposed reforms to inheritance tax relief for farms, highlighting potential negative effects on rural communities and the UK’s food security. Alex Freudmann, managing director of M&S Food, urged the new environment secretary, Emma Reynolds, to support British farmers amidst growing dissatisfaction in rural areas. Freudmann stated, “We support our farmers’ calls on the government to do more to support farming, and that includes supporting their call for a rethink on inheritance tax.”

The FTSE 100 retailer has previously aligned with the National Farmers’ Union in urging ministers to extend consultations on proposed changes to agricultural property relief and business property relief, which currently protect many family farms from substantial tax liabilities.

This stronger language indicates M&S’s willingness to challenge Sir Keir Starmer’s administration, following weeks of unrest in rural communities concerning Labour’s policies. M&S had written to Reynolds’ predecessor, Steve Reed, on 19 June after discussions with farmers and growers. Freudmann’s letter expressed doubts about a genuine national commitment to boosting domestic food supply and urged the government to establish a clear, legal target for domestic food production. He argued that such a target, if enshrined in law like those for net zero or nature protection, could favour farmers and growers in planning or water access decisions.

Sources indicate that Reed did not respond to the letter. However, Reynolds visited a pig farm on Saturday, marking one of her first visits as environment secretary. A government spokesman defended the inheritance tax changes, stating they are crucial for repairing public finances. He noted, “Our reforms to agricultural and business property relief are vital to fix the public services we all rely on. Three-quarters of estates will continue to pay no inheritance tax at all, while the remaining quarter will pay half the inheritance tax that most people pay, and payments can be spread over ten years, interest-free.”

The debate arises after weeks of rural protests and concerns from farming leaders that Labour’s reforms could destabilise family-run farms already struggling with rising costs, trade disruption, and environmental compliance pressures.