Marks and Spencer’s head of agriculture and fisheries has spoken about the new policy to charge inheritance tax on agricultural assets, which will begin in April 2026.

Steve McLean told BBC Wales: “The whole taxation system was devised to recognise that the margins of profitability in agriculture weren’t like other industries. That’s why you had a difference in how the inheritance tax approach was set up.”

“They (the proposed changes) 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. So being able to give greater surety and greater security is going to be key to a viable farming structure going forward.”

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In November, the Government announced plans to implement a 20 percent inheritance tax on agricultural assets worth more than £1m, which is half of the usual rate. A government spokesperson said “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”.

However, there are concerns the change will negatively affect older farmers and a higher number than the Treasury has estimated.

Tom Bradshaw, president of the National Farmers Union said: “The food and farming sector supports millions of jobs, fuels our domestic food supply, and contributes billions to the UK economy.

“If this legislation goes ahead, it will unquestionably have devastating and irreversible impacts on the country, and it is so poorly designed that it will inevitably have to be changed in the future.”

The backlash comes as the government has been under scrutiny for proposing higher business rates for retailers, as well as tightening health regulations in supermarkets. Businesses argue the higher tax rates will lead to inflation, which will directly affect consumers.