Lakeland Dairies warns of ‘damage' from reforms to UK inheritance tax
Lakeland Dairies, based in Monaghan and has operations north of the Border, raised its concerns during a visit by Northern Ireland secretary Hilary Benn to its food-service facility in Newtownards, Co Down, last week. The facility manufactures products for 80 global markets.
The co-op, which has milk suppliers on both sides of the Border, said it raised the importance of frictionless trade under the Windsor Framework, the need for a new UK-EU Sanitary and Phytosanitary (SPS) agreement as well as concerns over the impact on family farms of inheritance tax reform at the meeting.
It was heartening to see the secretary of state so engaged and interested
Farms had been exempt from IHT but from April 2026, the levy will be payable on farms worth over £1m (€1.16m).
Niall Matthews, chairperson of Lakeland Dairies, said the firm was 'delighted' to welcome Mr Benn.
'It was heartening to see the secretary of state so engaged and interested in the NI dairy industry,' he said.
'As the largest dairy co-op in NI, and the second largest of the island, we know that the dairy sector is an economic powerhouse supporting thousands of family farms across the island.
'Policies that protect our ability to trade seamlessly, support generational renewal, and futureproof our industry are vital,' Mr Matthews said.
'There is a real opportunity for the UK and EU to work constructively on a new SPS agreement, and we were encouraged to see that the secretary of state is listening closely to the sector's concerns.
'These are not abstract issues, they go to the heart of our way of life, the sustainability of rural communities, and the future success of the dairy industry.'
Keith Agnew, the co-op's vice-chairperson, added: 'Regarding the agricultural property relief (APR) inheritance tax issue, we made it very clear to the secretary of state that changes are necessary in order to not damage the very fabric of the sector.
'A parent transfers the farm to their son or daughter to build upon their successes. The land inheritance tax, in its current form, has the potential to seriously damage the family farm model and the generational renewal we need to continue to move our world-class sector forward', Mr Agnew said.
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