The industry has responded to today’s spending review, in which some budgets were squeezed while transport, housing and the NHS were highlighted.
The NFU was cautious in its response, welcoming the announcement of £7.4 billion for Defra, which matches previous budgets. £2.7 billion will be available for farming and nature recovery, however, there will also be a £100 million cut to farming and countryside programmes.
The Chancellor was also criticised for refusing to reverse the changes to inheritance tax, dubbed the family farm tax.
NFU president Tom Bradshaw said: “While the Defra Secretary of State has listened2 and managed to maintain the overall funding for farming and nature recovery, from what we can see so far, the £100 million cut to farming means farmers and growers will need to do more with less.
“The devil will be in the detail. And it’s essential that the Environmental Land Management schemes will be accessible for all farmers to get involved.
“This government has repeatedly said it wants to deliver growth, and the Chancellor said today that ‘economic security relies on our ability to make and sell more in Britain’, something the food and drink sector is primed to do. It is already the UK’s largest manufacturing sector, worth some £148 billion to the national economy and supports more than four million jobs. To help increase this, farmers must be included in the government’s industrial strategy and given access to the new investment announced today to boost supply chain resilience, job creation, R&D and local economic growth.
“The Chancellor also said that this government ‘cares about where things are made and who makes them’. But British farmers and growers haven’t felt this applies to them, and their confidence has been battered by constantly moving policy goalposts, global volatility and unpredictable climate events. In this age of insecurity, will the government back up its manifesto statement that food security is national security, and give farmers and growers the certainty and confidence to invest in their future?
“It’s also incredibly disappointing that the Chancellor didn’t take this opportunity to do the right thing on the family farm tax, especially when farmers and growers are the working people of Britain, the same people this government claims it wants to see thrive.
“We still need more details and the NFU will continue to work with Defra as it makes important decisions about how this money will be spent.”
Country Land and Business Association (CLA) president Victoria Vyvyan said: “While we still need further detail, it is clear that this is a meaningful funding settlement. Many farmers will be breathing a sigh of relief.
“We now need Defra to work closely with industry to understand how to get the best bang for their buck – to further the impressive gains we have already made in nature-friendly farming. Trust and confidence have been shaken, and this is an opportunity to rebuild.
“It is clear though that government still has not fully understood the consequences of its anti-business policies. Taxes are going up, jobs are being lost and investment in the rural economy is crumbling. Now is the time to get around the table with rural business leaders and thrash out a robust and ambitious plan for growth.”