Rachel Reeves is under fire as Tesco and Lidl urge her to rethink the controversial tax on family farms, citing concerns for food security.
London: Rachel Reeves is really feeling the heat over her proposed tax on family farms. Supermarket giant Tesco is pushing her to scrap this policy.
They’re standing up for farmers who might have to sell their land due to this inheritance tax raid. Tesco’s chief commercial officer even warned that the UK’s food security is on the line.
And it’s not just Tesco. Lidl and the Co-Op are also calling for a rethink on this tax. They want her to hit pause on the whole thing.
This new pressure comes after a report from the Office for Budget Responsibility. It suggests the tax might not bring in the expected £500 million a year. That’s a big deal!
Ashwin Prasad from Tesco said that keeping farms stable is crucial. It helps ensure customers get quality food at prices they can afford.
Starting in April 2026, inherited farm assets over £1 million will face a 20% inheritance tax. Many family farms are asset-rich but cash-poor, making it tough to pay that bill.
Since the announcement, farmers have been protesting. Some are even blocking supermarket supply chains, taking a page from French farmers’ playbook.
Prasad emphasized that farmers need certainty. With all the policy changes, it’s hard for them to plan or invest in their farms.
He mentioned that many smaller farms rely on agricultural property relief and business property relief, so their worries are valid.
Lidl echoed these sentiments, saying the tax changes could hurt farmer confidence and investment in the food system.
They’re also planning to raise their concerns with the government whenever they can.
The Co-Op has reached out to government departments, hoping they’ll reconsider the tax changes. They’re joining the farming unions in calling for a review.
A government spokesperson reassured that they’re committed to farmers, pledging £5 billion over two years for sustainable food production. They’re also working on a long-term farming roadmap.
They argue that the new inheritance tax rules will actually lower the effective rate to 20% instead of the usual 40%, which they believe is a fair approach.
