M&S backs farmers over UK Labour ministers in inheritance tax row

A senior executive at major UK retailer Marks and Spencer has criticised planned changes to inheritance tax, warning they will put off young people from working in farming.

From April 2026, inherited agricultural assets worth more than £1m will be taxed at a rate of 20%, half the usual rate.

Steve McLean, M&S head of agriculture and fisheries, told BBC Wales the policy will “definitely” be a “deterrent for young people coming into the industry”.

A UK government spokesperson said the “reforms to agricultural and business property relief are vital to fix the public services we all rely on”.

Ministers insist “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 10 years, interest-free”.

One farming union warned last month that Welsh family farms have been thrown into “turmoil” by the changes.

Speaking at the Royal Welsh Show in Llanelwedd, Mr McLean, firmly backed the farmers in the argument.

M&S, he said, was “very, very clear” that agriculture should be treated differently by the government.

“The whole taxation system was devised to recognise that the margins of profitability in agriculture weren’t like other industries,” he said.

“That’s why you had a difference in how the inheritance tax approach was set up.”

Mr McLean warned the changes, announced by Chancellor Rachel Reeves last November, would “impact confidence”.

“They definitely will be a deterrent for young people coming into the industry, and we want to see a vibrant, viable farming structure where young people can come in and make a good living and be proud of what they do,” he said.

“So being able to give greater surety, greater security is going to be key to viable farming structure going forward.”

The UK government spokesperson added: “Our commitment to farming and food security is steadfast, which is why we’ve allocated a record £11.8bn to sustainable farming and food production over this parliament and appointed former NFU president Baroness Minette Batters to recommend new reforms to boost farmers profits.”