Shoppers told to expect higher prices after ‘shameless’ tax raid on farmers

British growers hit with steeper employment costs and changes to agricultural property relief

The price of fresh vegetables grown in Britain could rise by as much as 20pc after Labour launched a “shameless” tax raid on farmers.
Growers of British berries, tomatoes, cucumbers, broccoli and peppers have warned they will be forced to push up prices in the wake of the Budget.
Farmers are among the businesses facing steeper employment costs following an increase in the minimum wage as well as an increase in employer National Insurance contributions (NICs).
The Lea Valley Growers Association (LVGA), whose members grow three-quarters of Britain’s cucumber, aubergine and sweet pepper crop, said higher costs “cannot be absorbed by growers so will be passed on to shoppers”.
Lee Stiles, from the LVGA, said: “Prices for next year had already been agreed with supermarkets prior to the Budget. However, these will now have to be revisited.”
He said wages were the biggest overhead cost for farmers, meaning Ms Reeves’ decision to increase the cost of employing workers would necessarily impact prices.
Mr Stiles said: “The additional tax burden imposed by the Government could result in prices rising for cucumbers, tomatoes, peppers and aubergines by an additional 10-20pc.”
It raises the prospect that the price of a loose aubergine or a cucumber could go up by 20p in supermarkets, while packs of peppers could rise by 35p.
Tom Bradshaw, the president of the National Farmers Union, accused the Government of fuelling inflationary pressures, saying: “The Budget is, without a shadow of a doubt, increasing the cost of primary food production. These growers cannot swallow that cost and so it has to go up the supply chain and it will drive food inflation.”
There are broader concerns about what the Budget means for the future of Britain’s farming industry. On Wednesday, Ms Reeves tightened inheritance tax rules to limit how much business owners and farmers can leave to their families tax-free.
From April 2026, UK farms worth more than £1m will no longer be exempt from paying inheritance tax.
Mr Bradshaw called the decision a “shameless move”, adding that it would “snatch away much of the next generation’s ability to carry on producing British food, plan for the future and shepherd the environment”.
The Government has argued that three-quarters of farms will not be affected by the change.
However, farming leaders questioned the figure. The Country Land and Business Association (CLA) said it believed that most viable, productive farms in this country would have some inheritance tax to pay following the changes.
The CLA’s analysis suggests 70,000 farms will be impacted by the inheritance tax changes.
Gavin Lane, the CLA’s deputy president, said: “To have that looming over you whilst you’re trying to run a business, it undermines confidence.”
The CLA recently surveyed its members on potential inheritance changes, finding that 86pc would need to sell all or part of their farmland if the Government amended the scheme.
Henry Dimbleby, the former government food tsar, said the inheritance tax changes would trigger “big worries” for farmers.
🧵Reflections on the budget: Wins for nature, worries for farmers, and a wake-up call for public health. On balance, there’s positive news for nature 🌳, but challenges remain, and we urgently need more on health 💪🏼. Here are my key takeaways:
The co-founder of the Leon fast food chain said the policy move would likely affect most farms between 100 and 1,000 acres across the country.
Writing on LinkedIn, he said: “I wouldn’t be surprised if the Government is forced to backtrack on this in some way. If not, what are the potential consequences?
“Less investment as farmers save for taxes. Family farms not handed down. Consolidation into larger farms. Profound effects on rural communities.”
Mr Dimbleby previously helped to steer the UK’s National Food Strategy. He was hired in 2019 by the environment secretary at the time, Michael Gove, to lead a major review of the UK food system.
The Treasury was contacted for comment.