‘Disaster Budget will kill UK farming’, warns chicken king Boparan
Entrepreneur Ranjit Singh Boparan, whose empire ranges from Bernard Matthews to Carluccio’s, has warned the autumn Budget is a “disaster for business” and will “deliver a final fatal blow to the thousands of small family-owned farms”.
Boparan added that the “inheritance tax raid” on farms announced in the Budget on 30 October “risks supply being severely compromised”.
The businessman also said that the policy of charging 20 per cent on farms worth over £1m will lead to many going out of business, restrict supply and increase costs.
He added that the move “does not align with the Labour government’s aspiration to adopt policies to ensure food security in the UK”.
Boparan owns 2 Sisters Food Group as well as a number of brands through his own private office.
All together, he employs more than 23,000 people in the UK and Europe.
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 less people investing in food production in the UK.
“Farmers have been hit with 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.”
Boparan’s comments come after City PM reported at the start of October that he received a bumper pay day after profit at his private office jumped to almost £125m.
Boparan’s private office includes high street restaurant brands like Carluccio’s and Gourmet Burger Kitchen as well as Bernard Matthews, Banham Poultry and Elkes Biscuits.
Accounts with Companies House revealed that the private office paid out a £12.5m dividend for 2023, after not issuing one in 2022.
The dividend same as the Chicken King’s private office posted a pre-tax profit of £124.9m for the financial year, up from the £90.2m it achieved in the prior 12 months.
The results also came after it was announced that the poultry arm of 2 Sisters Food Group, which is owned by Boparan, was to be sold to his private office for more than €200m (£168m).
The division is currently part of 2 Sisters parent company, Boparan Holdings (BHL).
In May, City PM reported that Boparan Holdings had posted a pre-tax loss of £28m for the year to July 29, 2023, compared to the £33.4m it lost during the prior 12 months.
The last time the group made a pre-tax profit was the £52.6m it reported in the year to July 31, 2021.
Boparan founded 2 Sisters Food Group, which is based in the West Midlands, in 1993.
Tax rises ‘stifles supply and will lead to higher prices’
Boparan added: “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 really 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.”
Boparan warned that, based on his own modelling, the Budget will lead cost his portfolio of businesses “many tens of millions” which he said would ultimately will be passed onto the customer.
He said: “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.”