Britain’s biggest supermarket Tesco has blasted Rachel Reeves’ inheritance tax hike on farmers – warning it could wreck the nation’s food security and must be scrapped.
The retail giant has urged the Labour Government to rethink its plans to slap a 20 per cent inheritance tax on farms worth more than £1m, saying it could cripple British agriculture.
Tesco’s big boss Ashwin Prasad warned: “This is not just a debate about individual policies – the UK’s future food security is at stake.”
In a show of unity, Aldi and Lidl have also joined the fight, piling pressure on ministers to ditch the tax raid.
The trio of retail giants – which control nearly half of Britain’s grocery market – say the plan could force farmers to flog their land or even shut up shop for good.
Backing the call to scrap the policy, Aldi said: “We all need a farming sector that can confidently invest in its future and continue to produce high-quality British food.”
Meanwhile, Lidl warned the tax bombshell will “hold back the investment needed to build a resilient, productive and sustainable British food system.”
FARMERS IN CRISIS
The backlash comes after Reeves announced the tax shake-up in last year’s Budget, set to kick in from April 2026.
Farms were previously exempt from inheritance tax, but Labour’s move will see agricultural estates worth over £1m slapped with a 20 per cent charge.
Furious farmers have hit back, warning the tax will drive them to the wall – and they’ve already taken to the streets in tractor protests outside Westminster.
Tesco’s Mr Prasad said farmers “desperately need more certainty” to plan their future, adding: “After years of policy change, it has been harder than ever for them to plan ahead or to invest in their farms.
“It’s why we’ll be supporting the National Farmers Union’s calls for a pause in the implementation of the policy, while a full consultation is carried out.”
GOVERNMENT UNDER PRESSURE
The Government insists the tax changes will only hit a small number of wealthy estates, claiming that just 500 farms a year will be affected.
But farming chiefs aren’t buying it. The National Farmers Union (NFU) reckons 75 per cent of British farms could be hit by the tax grab.
The Central Association of Agricultural Valuers says it could impact five times more farmers than ministers admit – with up to 2,500 a year facing massive tax bills.
With Asda, Morrisons, and Sainsbury’s also voicing concerns, pressure is mounting on Labour to U-turn before it’s too late.
Farmers are now urging ministers to listen before it’s too late – warning the policy could devastate British farming for generations to come.
Will Rachel Reeves back down – or will farmers be left counting the cost?
Main image: For illustration purposes only.
