Tesco, Aldi and Lidl have backed British farmers in their dispute with the government over tax changes in the budget.

Ashwin Prasad, Tesco's chief commercial officer, said "Britain's future food security is at stake" and the government should suspend inheritance tax on farms worth more than £1 million.

Tesco is the UK's largest supermarket, accounting for about 45% of the UK grocery market along with Lidl and Aldi, so their warning on Wednesday will increase pressure on the government.

Asda and Morrisons have spoken out in support of farmers involved in the dispute, while Sainsbury's has called on the government to listen to people's concerns.

The BBC has contacted the Treasury for comment.

"We will support the National Farmers Union (NFU) call for a moratorium on the policy while full consultations take place," Prasad said.

Adding: “After years of policy changes, it’s harder than ever for them to plan ahead or invest in their farms.”

Meanwhile, the Office for Budget Responsibility, the government's budget watchdog, said farmers may cut investment due to tax raids.

Published new analysis, the OBR said that while the introduction of the tax is expected to add £500m a year by 2029, the estimate is highly uncertain and older farmers may struggle to restructure their affairs to minimize new costs.

It also said farmers may seek to limit taxes by "potentially reducing property values".

Aldi also supports calls for a pause. It said: “We all need a farming sector that can confidently invest in the future and continue to produce high-quality British food.”

“That’s why we support calls from the farming community for the government to pause implementation of its proposed inheritance tax reforms until further consultation can take place.”

A spokesman for Lidl said the supermarket giant was "concerned that recent changes to the inheritance tax (IHT) regime will impact on the confidence of farmers and growers and hinder the investment needed to build a resilient, efficient and sustainable UK food system."

German supermarkets have called for full consultations. "We will raise our concerns with the government at every opportunity," it said.

In October last year, Chancellor of the Exchequer Rachel Reeves announced that from April 2026, farms worth more than £1 million would be subject to a 20% inheritance tax.

Previously, farms and agricultural businesses were exempt from death taxes.

In December, protesters drove tractors through Westminster to protest.

then, NFU president Tom Bradshaw told MPs Farmers were prepared to work with the government, adding there were "lots of ways" to make the policy "less bad".

However, Sir Keir Starmer insisted the "vast majority" of farmers would not be affected by the tax changes.