Three in five Brits are expecting food prices to increase due to the recently announced 'family farm tax', new research has warned.
And almost half (44%) of those bracing for rises admitted they will seek cheaper and lower quality food alternatives.
The research was commissioned by the Liberal Democrats, which surveyed over 2,000 adults across the UK.
More than 70,000 farms across the country could be hit by the new inheritance tax laws from April 2026, which was announced in the budget.
Inherited agricultural assets worth over £1 million, which were previously exempt, will have to pay inheritance tax at 20% - half the usual rate.
The poll shows that a further 35% of those expecting increases said they will cut back on the food they buy as a direct result of the tax hike.
The Liberal Democrats' research, revealed today (25 November), also shows the serious effect food price rises could have on people’s health.
Nearly one-in-five of those expecting rises said they are likely to buy less fresh fruit and vegetables if prices go up.
The impact on small businesses and the high street is also apparent, with 20% of this group saying they will look to shop from bigger supermarkets.
This is set to be another hit to small businesses already concerned about the rise in employers' NIC increase.
Commenting on the results, Liberal Democrat chief whip Wendy Chamberlain said the impact of the farm tax hike 'goes beyond rural communities'.
She said: “The budget shows that the government does not understand farmers and how critical they are to food security, to the protection of our natural environment and to the British economy.
“We are urging the government to axe the tax now, or else the impact will be felt for millions across the country already struggling to make ends meet.”
It follows research by the NFU which shows the inheritance tax proposals were the most unpopular measure in the autumn budget.
Two thirds (65%) of Brits told the union that they do not think the government fully considered the impact of its planned changes on family farms.
Thousands of farmers took to the streets of central London last week to protest against the budget's measures.
