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Rachel Reeves has been warned that her inheritance tax raid on British farmers risks pushing food prices even higher for struggling families. The Chancellor came under intense attack when she faced MPs and defended last month’s tax-hiking Budget.

Ms Reeves was urged to heed a warning from a supermarket boss and ensure vulnerable families do not find it even harder to put food on the table. DUP MP Sammy Wilson led the charge, pointing to Aldi UK boss Giles Hurley’s comments that he was disappointed not to see “at least a review” of inheritance tax changes for family farms. Mr Hurley told The Telegraph that a “thriving British food system is really important” for both the “resilience” of the sector and prices.

Mr Wilson said: “If she doesn’t listen to the farmers, will she at least show some concern for consumers and look again at this tax?”

From April, inherited agricultural assets worth more than £1million will be hit with a 20% tax.

Ms Reeves defended her decisions, saying: “If you look at what’s happened since the Budget, the Co-op has cut or frozen the prices on 2,700 essential products at a cost of £1billion, recognising the impact the cost of living still poses to families, but also reflecting the Budget package which supports our high streets, including our supermarkets.”

Labour also came under fire for extending the freeze in the threshold for paying inheritance tax and National Insurance for a further three years.

Sir Ashley Fox, Tory MP for Bridgwater, warned: “Extending the freeze on income tax thresholds will cost working families £900 a year. It will also drag many pensioners into paying income tax for the first time.”

He accused Labour of “hitting these low-income families to pay more for welfare”.

Treasury minister Dan Tomlinson called the attack “a bit rich”, saying the Conservatives “spent seven years freezing income tax thresholds”.

Shadow Chancellor Sir Mel Stride also put the Chancellor under more pressure about the events leading up to Budget day.

He said: “The process surrounding the Budget was utterly chaotic. We had months of damaging speculation, fuelled by briefings and leaks from the Treasury itself.”

Putting Ms Reeves on the spot, he asked: “Did she at any point authorise or allow confidential details of the Budget or the forecast to be briefed to the press? Yes or no?”

Ms Reeves replied: “No.”

Sir Mel has asked the Financial Conduct Authority to investigate “possible market abuse” by people working in the Treasury or Downing Street.