Berry Bros & Rudd, Britain’s oldest family-run wine and spirits merchant, has voiced strong criticism of the Labour government’s recent tax policies, citing concerns over their potential impact on long-term business sustainability. The company, which has operated for 328 years and supplied the Royal Family since the 19th century, faces challenges related to inheritance tax changes introduced in the 2024 autumn budget.

Lizzy Rudd, chair of the London-based firm, expressed frustration with measures affecting agricultural and business property relief, which she described as “shortsighted.” The government initially proposed restricting 100% relief to £1 million per individual, with a reduction to 50% relief from April 2026. This change prompted widespread criticism, leading to a subsequent adjustment that raised the allowance to £2.5 million per estate, with the option to transfer unused relief between spouses or civil partners.

Despite these amendments, Rudd called for a full reinstatement of 100% relief, or at minimum, for tax policy to better support businesses aiming for long-term resilience and social responsibility. She emphasized that Berry Bros & Rudd operates on slim profit margins and stressed the firm’s preference for taxation based on profits rather than assets. “To tax us on our assets is all wrong,” she said. “We’re very happy to pay tax, but tax us on the profit, on the cash we generate. Not on the assets that we’re using to make the business work.”

Rudd also highlighted the rising costs of conducting business in recent years, compounded by policies that she believes hinder investment and growth. As a company with a commitment to sustainability and social impact, Berry Bros & Rudd has expanded into the United States but remains cautious about its future strategies, including the possibility of selling assets to maintain stability.

The chair called for a more forward-looking approach from the government, urging policymakers to support long-term business planning and environmental goals. “We want them to think longer term to create the changes that we’re trying to create as a tiny microcosm. Think longer term. Be bold – we want major change,” she said.

The Labour government has yet to respond to requests for comment on the concerns raised by Berry Bros & Rudd.