Tesco said: "This is not just a debate about individual policies – the UK's future food security is at stake."
Tesco has called on the Government to pause and consult with the farming industry over proposed changes to Agricultural Property Relief (APR).
Autumn Budget
The retailer announced today (January 22) that it has joined the likes of Morrisons, Asda and Booths to publicly speak out against Chancellor Rachel Reeves' Autumn Budget and the proposed 20% taxation of inherited agricultural property and assets worth over £1 million from April 2026.
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Since Ms Reeves announced her Budget at the end of October, there has been widespread backlash from farmers, trade unions and businesses that rely on the sector who are concerned about the future of the industry.
Tesco backs farmers
"We are British agriculture's biggest customer and rely on the hard work and dedication of our British farmers and growers," a spokesperson for the supermarket chain added.
"They provide our customers with quality, fresh food year-round in what can be extremely difficult conditions.
"Especially when you consider the change and challenge UK farmers have faced in the past few years.
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"From unprecedented flooding and unpredictable weather, to continued policy change and uncertainty that makes investing in their farms more difficult.
"This is not just a debate about individual policies – the UK's future food security is at stake."
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Sustainability
"Action to ensure farms remain sustainable, both economically and environmentally, is critical to help future proof farmers' businesses," Tesco added.
"One message is loud and clear: farmers desperately need more certainty.
"After years of policy change, it has been harder than ever for them to plan ahead or to invest in their farms.
Inheritance Tax
"One current area of uncertainty is the proposed change to Inheritance Tax relief.
"With many smaller farms relying on APR and Business Property Relief (BPR), we fully understand their concerns."
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Consultation
The retailer has now called on the Government to work with the sector and consult on changes to APR and BPR.
"It is why we will be supporting the NFU's calls for a pause in the implementation of the policy, while a full consultation is carried out," the spokesperson added.
"The consultation must be followed by the setting of a long-term vision for UK agriculture which gives farmers clarity on the role they can play in the UK's wider transition to net zero, as well as create the right policy conditions for farmers to be able to invest in and benefit from the transition.
"The measures announced by Defra Secretary [Steve Reed] at the Oxford Farming Conference were a step in the right direction.
"If we get it right, the farming sector can be a powerful driver of green growth in our economy.
"A pioneer of new approaches that ensure farms can remain profitable, whilst also being sustainable."
Investment
Tesco said getting the issue right will be a win for 'farmers, customers, the economy and the planet'.
The grocery chain added: "Only by investing in UK agriculture can we create a future food system that is sustainable in every sense, and continue to provide secure, sustainable food for all."
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