Aldi has expressed disappointment at Rachel Reeves for not reconsidering its planned farm inheritance tax reforms.
The supermarket said that a resilient British food system remains vital for long-term stability in prices.
According to The Telegraph, Giles Hurley, the chief executive of Aldi UK and Ireland, had expected to see “at least a review” of the policy during last month’s Budget.
From April, farmers will face a 20 per cent effective inheritance tax rate on agricultural land and business assets valued above £1million.
Mr Hurley said: “The reality is the market is inflating.”
He also gave customers what he called a “cast iron guarantee” that Aldi would continue to offer the lowest prices in the market.
In the House of Commons, DUP MP Sammy Wilson urged the Chancellor to reconsider the agricultural levy.
The East Antrim MP said that low-income families were already under financial strain due to rising costs and fiscal thresholds.
Mr Wilson told MPs: “Low-income families have been hit by being dragged into tax bands which they weren’t in before, facing energy costs, and now the chief executive of Aldi has said that unless the Chancellor reviews her raid on farm inheritance tax that there’s going to be rising food prices hitting low-income families as well.”
He asked the Chancellor: “If she doesn’t listen to the farmers, will she at least show some concern for consumers and look again at this tax?”
Rachel Reeves will not reconsider its planned farm inheritance tax reforms
|
GETTY
Rachel Reeves defended the measure in her response in Parliament. The Chancellor pointed to moves by retailers following the Budget, including the Co-op’s decision to cut or freeze prices on two thousand seven hundred essential products.
Ms Reeves said: “Well, if you look at what’s happened since the Budget, the Co-op has cut or frozen the prices on two thousand seven hundred essential products at a cost of £1billion, recognising the impact the cost of living still poses to families, but also reflecting the Budget package which supports our high streets, including our supermarkets.”
Her response framed the Budget as delivering benefits for consumers through support for the retail sector. Shirine Khoury-Haq, the group chief executive of the Co-op, welcomed the Government’s approach when outlining the supermarket’s investment plans.
She said that the Budget offered “the clarity and certainty that small shops and local communities have been waiting for”.
The Co-op welcomed the Government’s approach when outlining the supermarket’s investment plans.
|
GETTY
She described the Government’s stance on business rates as “a welcome and important step that will help protect jobs, strengthen local economies and support high streets across the country”.
Ms Khoury-Haq said the Co-op would facilitate over £1billion of investment during the next year. She said that the plan includes the company’s largest programme of price reductions, continued support for British agricultural producers and actions aimed at maintaining vibrant high streets.
Despite the Chancellor’s defence of the tax changes, the policy has prompted dissent within Labour.
Markus Campbell-Savours, the MP for Penrith and Solway, lost the party whip after voting against the measure.
Farmers protesting in central London
|
GettyDuring the Budget debate, he said: “Members across the House have made the case against these changes, changes which leave many, not least elderly farmers, yet to make arrangements to transfer assets, devastated at the impact on their family farms.”
Labour MP Terry Jermy, who represents South West Norfolk, criticised the proposals for failing to address what he described as “abuse” by “celebrities and the billionaires” buying farmland to reduce inheritance tax liabilities.
Mr Hurley said that the issue carried broader importance for the food sector.
He said: “We know that a thriving British food system is really important for resilience and over the passage of time for price.”