Tesco warns IHT changes threaten farm investment as it reaffirms support for farmers
12th February 2026
Following recent action by British farmers, Tesco has reaffirmed its commitment to supporting local food producers and has voiced concern over the potential impact of inheritance tax changes on family farms.
In recent weeks, British farmers have staged nationwide supermarket protests. Participants gather at Tesco stores in different locations every Thursday evening between 4pm and 10pm, handing out leaflets to shoppers.
On the launch day of the protest at the end of January, a letter was sent to Tesco and 10 other major supermarkets by email and registered post.
Organisers said the main aim is to “keep the press boiling” after every Thursday action through to 1st March, while they await responses from the retailers.
“UK family farmers are at breaking point. This IHT campaign challenges major supermarkets and the government to end policies and practices that are destroying family farms, food security, and rural livelihoods.
“Family farmers feed this country. It’s time they were paid properly, treated with dignity, and protected for the future,” they added.
A formal letter from Farmers For Action, supported by farm organisations across the UK and beyond, demanding clear yes/no responses to the campaign’s requests.
The FFA is calling on retailers to use their influence to lobby the government on four critical issues: ending the “crippling” farm inheritance tax; introducing a UK-wide Farm Welfare Bill to ensure family farmers are paid at least the true, inflation-linked cost of production plus a fair margin; ending the practice of “food swapping” (for example, importing lamb when the UK is self-sufficient), which the FFA argues accelerates climate change for corporate profit; and banning the import and retail of “substandard” food — specifically citing Brazilian beef — alongside an end to misleading food labelling.
‘Major challenge to the future of UK farming businesses’
Tesco confirmed its commitment to the long-term financial and environmental sustainability of UK farmers, warning that proposed inheritance tax changes could threaten farm investment and future viability, and reiterated its support for a pause while the policy is fully consulted on.
A spokesperson for the retailer said: “As the biggest customer of UK agriculture, we’re fully committed to ensuring our farmers and growers remain financially and environmentally sustainable.
“While the government has moved on from its original position, we know proposed changes to inheritance tax relief still represent a major challenge to the future of UK farming businesses and their ability to invest.
“We continue to support a pause in the implementation of the policy while a detailed consultation is carried out to understand its impacts.”
READ MORE: ‘Food security is national security,’ says MP while showcasing empty supermarket shelves
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