Family Businesses Warn of Food Security Threat as Inheritance Tax Plans Cause Alarm for UK Industry

Ranjit Singh Boparan, the founder and owner of 2 Sisters Food Group, has delivered a stark warning to government policymakers, claiming proposed changes to inheritance tax threaten the future of family-run businesses and risk undermining the UK’s food security. As head of one of Britain’s largest private employers, Boparan criticised ministers for favouring private equity and global investment firms over British business owners with deep national roots.

Boparan stated that family businesses have become the “forgotten backbone” of the country’s economy. He argued that overseas investment giants “possess no true allegiance to the UK” and often prioritise profits over local stability. The entrepreneur, who employs around 25,000 people across his group and related restaurant ventures, asserted that policy shifts are driving firms to seek opportunities abroad.

Boparan revealed his intention to allocate £1.75 billion into robotics, artificial intelligence, and the development of sustainable farms and factories. However, he warned that if inheritance tax proposals restricting business property relief on agricultural assets take effect, the impact would be “horrific” for the sector. These measures, according to Boparan, force investors to reconsider investment in the UK, often weighing foreign ventures as more attractive.

Family businesses like his are left frustrated by a lack of engagement from government leaders, with efforts to secure meetings with senior Labour politicians reportedly falling flat. Boparan also highlighted the challenges of securing planning permissions, which hamper the expansion of operations aimed at improving animal welfare standards.

This perspective is echoed by Charlie Bigham, founder of a well-known ready meals business, and Stuart Machin, CEO of Marks & Spencer. Both have recently urged the government to rethink the inheritance tax approach and introduce policies supporting domestic food production. According to industry group Family Business UK, the uncertainty has already led many firms to shelve planned investments and hiring initiatives, warning of the risk to both jobs and long-term growth.

The Treasury has responded by noting its cap on corporation tax, major trade deals, and recent interest rate cuts. Yet, from the viewpoint of Boparan and industry peers, the call remains for more targeted support and a level playing field to strengthen domestic enterprise and secure Britain’s food supply for the future.