Supermarket giant Morrisons backs farmers as inheritance tax row lands blow to Starmer

In a setback for Prime Minister Sir Keir Starmer, one of Britain’s biggest supermarkets has publicly thrown its support behind farmers opposed to the Government’s planned inheritance tax (IHT) reforms.

Sophie Throup, head of agriculture at Morrisons, posted a video message on X (formerly Twitter) declaring the retailer’s solidarity with farming communities, who are preparing to protest nationwide on Friday over what they call a “devastating” tax raid on family farms.

The new levy, which comes into force in April 2026, will impose a 20 per cent inheritance tax on farming estates valued over £1 million. Although this is half the standard 40 per cent IHT rate, the move has sparked fears that smaller, family-run farms could be forced to sell off land or face crippling financial burdens. Under current rules, individuals can transfer their estates tax-free if they live for another seven years, but the new measure would significantly tighten reliefs for agricultural property.

Ms Throup said Morrisons had raised “concerns at the highest level of government” since the policy was announced last autumn, telling farmers she “understands your anger and frustrations” and inviting them to contact her directly. While many welcomed the supermarket’s intervention, others questioned whether it was more of a public relations gesture than a genuine willingness to fight on farmers’ behalf.

Mo Metcalf-Fisher, external affairs director at the Countryside Alliance, hailed the supermarket’s intervention as a “major development” in attempts to convince both Sir Keir Starmer and Chancellor Rachel Reeves to reconsider the proposal. Some farmers remain sceptical, however. Clive Bailye, founder of online platform The Farming Forum, pointed out that supermarkets have traditionally been tough negotiators on prices and questioned their real motives.

The Government insists it has no plans to back down. A spokesperson said that under its “fair and balanced” reforms, farmers still benefit from a reduced IHT rate of 20 per cent, payable interest-free over a decade, while pointing to a £5 billion investment in agriculture over two years. Despite these assurances, tensions remain high, with protests scheduled and the National Farmers’ Union confirming it has lobbied retailers to push for a more favourable outcome. Whether Morrisons’ show of support translates into actual policy change remains to be seen.

Jamie Young

Jamie is a seasoned business journalist and Senior Reporter at Business Matters, bringing over a decade of experience in UK SME business reporting.
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