Tesco and Lidl announce support for farmers amid IHT backlash

Tesco's chief commercial officer warned that the UK’s food security is at stake
Tesco's chief commercial officer warned that the UK’s food security is at stake

Tesco and Lidl have become the latest retailers to announce their support for farmers as backlash continues against the government's inheritance tax changes.

Their interventions come after Morrisons and Asda both waded into the ongoing row, which has seen farmers protest in London and across the UK.

Ashwin Prasad, Tesco's chief commercial officer, joined growing calls for a 'pause' in the government's implementation of the controversial budget measures.

He said he 'fully understood' farmers' fears about the changes - announced by Chancellor Rachel Reeves - which have been dubbed the 'family farm tax'.

From April 2026, a 20 percent tax on inherited agricultural assets worth over £1 million will be rolled out.

It comes after hundreds of tractors visited supermarket car parks across the UK on 17 January as part of a plea urging for more support from retailers.

In a statement, Mr Prasad firmly backed the nation's farmers, saying: "This is not just a debate about individual policies – the UK’s future food security is at stake."

In a separate statement, Lidl said providing security and long-term investment for British agriculture was key to helping ensure that farmers could continue to produce food.

"We are concerned that changes to the IHT regime will impact farmer confidence and hold back the investment needed to build a resilient, productive and sustainable British food system," the discounter said.

"We support the call by the farming community to pause the implementation of those changes and to consult with industry to achieve a mutually beneficial outcome.

"We will be raising our concerns with the government at any opportunity we get."

The Countryside Alliance, one industry group campaigning for a reversal of the proposal, said retailers "benefit from a buoyant family farming sector".

Mo Metcalf-Fisher, director of external affairs at the alliance said: “It is becoming almost impossible to find anyone that supports this policy.

"Rachel Reeves refuses to consult relevant rural stakeholders to find a way forward out of the unnecessary fall out created by her department.

"If the government wants to avoid a long-running battle with countryside, they need to rethink this policy urgently.”

Shortly after October's budget, Sainsbury's urged ministers to 'listen to the concerns' of farmers about the tax changes.

Earlier this month, Morrisons told farmers 'we're with you' in their fight against the Labour government's action.

Asda also offered their public backing for farmers recently by supporting a demand for a pause in the implementation of the budget measures.