Ranjit Singh Boparan, founder and owner of 2 Sisters Food Group, has expressed concern over Rachel Reeves’ recent Budget, describing it as a “double whammy” for businesses that could drive up food inflation and deal a “final fatal blow” to the UK farming sector.
Boparan, whose £5bn Birmingham-based food business spans poultry production, brands like Bernard Matthews and Holland’s Pies, and high-street chains including Carluccio’s and Giraffe, relies heavily on hundreds of family-run farms across the UK.
He warns that the new inheritance tax on farms valued over £1m—now set at 20%—could severely impact the supply chain.
With over 23,000 employees across the UK and Europe, Boparan argues that the tax changes could force many farms to shut down, restrict supply, increase costs, and ultimately undermine the government’s food security goals, which aim to ensure the UK produces a significant portion of its food supply.
He said: “This Budget was a disaster for business and will deliver a final fatal blow to the thousands of small family-owned farms we in the food manufacturing sector rely upon day in, day out. They provide security of supply. This move will create food inflation and food insecurity. It will mean fewer people investing in food production in the UK.
“Farmers have been hit with a massive inflationary rise in costs in recent years like feed, energy, labour, then we had a couple of particularly challenging years with high levels of Avian Influenza and the war in Ukraine. This instability in the supply chain means we’re always vulnerable to geo-political events.”
His remarks come amid already low confidence in the UK poultry farming sector. An NFU survey from earlier this year indicated that 15% of chicken producers were either uncertain or unlikely to continue poultry production “beyond November 2025.”
Boparan said: “All this has pushed British poultry to breaking point, and I see this latest inheritance tax rise as the issue that will push thousands of farms over the edge, it is quite unbelievable given what they’ve had to endure. This makes a mockery of the government claiming to want a self-sustaining farming sector that champions British-made food. This tax rise does the exact opposite of that – it kills the sector, stifles supply and ultimately, prices will rise.
“The retail sector has already quoted it will cost £1bn and in truth, our sector won’t be much behind that. £2bn on-cost is going to cause food inflation, all the while we’ve been spending all our time trying to bring inflation down.
“This Budget has done very little to encourage business owners to invest and build. Some businesses will find these changes a burden and it makes it more difficult to keep running smoothly and maintain value. Privately owned businesses are the backbone of the UK economy and take a different view on long-term investment. All this budget package does is reduce confidence and increases the chances of closures or selling to Private Equity for example, which invariably generates less tax.”