M&S Executive Slams Inheritance Tax Reforms, Warning of Threat to Future Farmers
Planned changes to inheritance tax could drive young people away from farming, a senior figure at Marks & Spencer has warned. Steve McLean, Head of Agriculture and Fisheries at the major UK retailer, voiced strong concerns this week during the Royal Welsh Show in Llanelwedd, aligning himself firmly with farmers worried about the future of their industry.
Under the new policy, set to take effect in April 2026, inherited agricultural assets worth more than £1 million will be taxed at 20%—still lower than the usual 40% inheritance tax rate but a significant shift from existing reliefs.
McLean didn’t mince words. Speaking to BBC Wales, he said the change will “definitely” act as a “deterrent for young people coming into the industry,” raising alarm about how it could destabilise the next generation of farmers.
“Margins in farming are nothing like other sectors,” he said. “The whole tax system was designed to reflect that reality. This change could really undermine that principle.”
Farmers across Wales and beyond have been raising red flags since the announcement by Chancellor Rachel Reeves last November. One farming union recently said the reform has thrown Welsh family farms into “turmoil.”
McLean echoed these fears, stressing that confidence in farming—especially among young entrants—is already fragile.
“If we want a vibrant, viable farming industry where young people can thrive, we need to give them security and certainty. This tax change does the opposite,” he added.
The UK government, however, defends the policy. A spokesperson said the reforms are “vital to fix the public services we all rely on,” noting that most estates—about three-quarters—won’t pay any inheritance tax. For those that do, the tax rate will be halved, and payments can be spread over 10 years interest-free.
They also pointed to a broader commitment to farming, citing a record £11.8 billion in funding for sustainable agriculture and the appointment of former NFU president Baroness Minette Batters to lead reform recommendations aimed at boosting farmer profits.
But for many in the industry, the concern remains: will these reforms help modernise farming—or discourage the very people needed to carry it into the future?