Farm Shop Closures Loom: Thousands of Jobs at Risk Across the United Kingdom

Budget changes may lead to 700 farm shop closures. Rising costs and tax changes threaten jobs across the UK over the next decade.

Farm Shop Closures Loom: Thousands of Jobs at Risk Across the United Kingdom
Farm Shop Closures Loom: Thousands of Jobs at Risk Across the United Kingdom

Scottish farmers protested inheritance tax changes, driving tractors through Westminster. Farm shops might close due to budget impacts. The Farm Retail Association (FRA) predicts 700 closures within the next ten years.

Farmers face rising National Insurance costs. Inheritance tax relief is ending for large farms, affecting those worth over £1 million from 2026. The FRA says the budget hurts farm shops, while the government says they support farmers.

Emma Mosey, owner of Minskip Farm Shop and chair of the FRA, said tax changes require asset sales. Farms may sell 20% to pay taxes. Labor costs are also increasing, and job losses could occur with store closures.

The British Retail Consortium warns of higher costs, potentially rising by £7 billion for retailers. Sean McCann of NFU Mutual warns of substantial tax bills that could endanger many farm shops. Farm shops help improve farms’ profits, as farms commonly diversify in this way.

Rachel Reeves defends the budget, aiming for UK economic growth. A spokesperson discussed government support, promising £5 billion to farming over two years. They noted investment in sustainable food and are developing a 25-year farming plan.

The government said it is committed to farmers. Reforms mean a lower inheritance tax rate, with estates paying 20% instead of 40%. Payments can occur over ten years with no interest applying to it. This affects about 500 estates next year. Many farmers are unhappy, and protests occurred after the budget release, with around 1,800 NFU members protesting in London.

Image Credits and Reference: https://metro.co.uk/2025/02/04/700-farm-shops-permanently-close-putting-thousands-jobs-risk-22497367/
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