By Henry Saker-Clark, PA Deputy Business Editor

Published 30th Jan 2023, 16:45 BST

Lidl GB added that the move will accelerate previously announced spending plans.

In 2019, the British arm of the German discount retailer committed to £15 billion of investment in the UK food industry from 2020 to 2025.

The group said this is now expected to rise to £17 billion for the period.

Lidl revealed its sales jumped by almost a quarter over the key festive period towards the end of last year, as it said it was buoyed by shoppers switching from rivals amid budget concerns.

Ryan McDonnell, chief executive officer at Lidl GB, said: “The farmers and producers that supply us, some of which have been with us for decades, are paramount to the success of our business.

“We see them as partners in our mission to provide households with high quality affordable produce, and for many, working with Lidl GB and being part of our growth has opened opportunities for their own expansion, both here in the UK and across the globe.”

Lidl said it sources around two-thirds of its core products from the UK and works with more than 650 suppliers across the country.

Martin Kottbauer, chief trading officer at Lidl GB, said: “Providing our suppliers with the security and certainty needed for them to invest and grow has been a big focus for us over the years.

“It’s why we’ve led the industry on the introduction of longer-term contracts, and it’s why our continued investment in the British food and farming industry remains an absolute priority for our business.”

It comes amid continued UK sales growth for Lidl, as shoppers face increased pressure on their budgets from higher household bills.

The news follows the supermarket revealing that its sales jumped by almost a quarter over the Christmas period, as it said it was buoyed by shoppers switching from rivals amid budget concerns.

The retailer said sales increased by 24.5% per cent over the four weeks to December 25, compared with the same period in 2021.

It added that it welcomed 1.3 million more customers to stores over the week before Christmas compared with the previous year.

This included the supermarket chain’s “busiest-ever day of trading in 28 years” on Friday December 23 as shoppers sought to buy last-minute Christmas groceries.

The retailer now has more than 950 British stores and employs around 28,000 staff.

Lidl to invest £4bn in UK food producers in 2023