Tesco, Lidl and Co-op join calls for IHT consultation

Supermarkets Tesco, Lidl and the Co-op have joined the growing chorus of voices urging the government to pause its proposed inheritance tax (IHT) changes, a move that could devastate Britain’s small family farms.

Their support follows earlier interventions from Morrisons and Asda, with all four chains backing calls for a rethink and consultation with the agricultural sector before the changes are implemented.

The proposed changes, announced by chancellor Rachel Reeves, would impose a 20% levy on agricultural property and assets worth over £1m from April 2026, sparking widespread concern among farmers.

See also: Morrisons secures injunction to prevent farmer protests

These changes, dubbed the “family farm tax” by the NFU, could force family-run farms to sell land or assets to cover the tax burden, threatening the long-term viability of the industry.

Tesco’s chief commercial officer Ashwin Prasad expressed understanding of farmers’ concerns, stressing that the future of the UK’s food security is at stake.

Lidl, in a separate statement, voiced its support for the farming community, highlighting the need for long-term investment in British agriculture.

The supermarket chain warned that the proposed IHT changes could undermine confidence and hinder the investment required for a resilient and sustainable food system.

Mo Metcalf-Fisher, director of external affairs at the Countryside Alliance, called on Sir Keir Starmer’s government to consult with relevant stakeholders and rethink the policy to avoid long-term consequences for rural communities and food production.

Latest rally plans

Farmers across the UK will rally for the NFU’s national Day of Unity on Saturday 25 January to oppose the government’s planned IHT changes.

As pressure mounts on the government, MPs are set to debate the IHT changes in parliament on Monday 10 February, following a petition calling for a halt to the policy.

Farm lobby Save British Farming has decided to cancel its planned tractor rally around London on 3 February to favour encouraging farmers to bring tractors to Westminster as this petition is debated on 10 February.

Separately, Morrisons has obtained a High Court injunction to stop further protests at its eight UK food distribution centres, following a tractor blockade by Farmers To Action at its Bridgwater site in Somerset.

Anyone found in violation of the order could face legal consequences, including fines or imprisonment.