Union calls for autumn Budget to pull farms out of “survival mode” with interest-free support and tax reliefs following 

NFU president Tom Bradshaw told Chancellor John Healey the Budget must restore farm business confidence

NFU president Tom Bradshaw told Chancellor John Healey the Budget must restore farm business confidence

Image: NFU

The NFU has said the upcoming autumn Budget must be “relentlessly focused” on strengthening Britain’s food security, setting out five key measures to consider in the government’s plans for tax and spending. 

Chancellor John Healey is set to announce the Budget on 28 October.

The measures set out by the NFU focus on reducing the cost of producing food, restoring farm business confidence and strengthening Britain’s food security.

This summer’s combination of drought, disease and geopolitical turmoil pushed farmers and growers “to the brink”, the union said. 

“For farmers and growers, this year has been bleak,” said Tom Bradshaw, NFU president. “No sector has been left unscathed, confidence is low and investment has suffered.”

Five key measures  

In a detailed submission to HM Treasury, the NFU called on the Chancellor to prioritise five measures to help secure the future of British food and farming. 

  1. Increase the Annual Investment Allowance to at least £5 million and extend its scope, supporting long-term investment in productivity, energy efficiency and water management.

  2. Provide funding for temporary interest-free Keep Britain Growing Loans, helping businesses hit hardest by this summer’s challenges to continue producing food next year.

  3. Ensure the Carbon Border Adjustment Mechanism does not put domestic food producers at a disadvantage to imports.

  4. Remove changes to Agricultural Property Relief and Business Property Relief, giving farm businesses greater confidence to invest, grow and plan for succession.

  5. Introduce enhanced capital allowances for incorporated and unincorporated businesses, encouraging investment in low-carbon technology and infrastructure.

Sustainable Farming Incentive 

The calls for funding come at a timely moment, given the application window for the Sustainable Farming Incentive (SFI) closed in just under six hours yesterday (September 22). 

The £233mn fund, which is meant to replace EU subsidies post-Brexit, aims to provide farmers with incentive to improve sustainable farming practices. 

The window closed when Defra had enough applications to allocate the full £233 million budget.

Robyn Munt, NFU vice-president, said: “The rapid uptake of the scheme comes as no surprise. We have made the demand clear to Defra for some time.

“Its closure in less than six hours shows the scale of demand there is from farmers to deliver for the environment and to invest in farm resilience,” she added. 

Need for economic policy and investment 

The calls come following the NFU’s Ready to Grow report which showed that the UK remains remarkably vulnerable to shocks in the global food supply. 

The report found that in 10 out of 11 everyday foods, including vegetables, the UK’s self-sufficiency has fallen in the last 30 years. Agri-food import volumes have risen 70 per cent over the same period, while export volumes have stalled.  

Bradshaw acknowledged that the government had already recognised that “food security is national security”, but that this needs to be backed by economic policy and investment. 

He said: “While we can’t control global volatility, we can take control of our food system here at home. The challenges facing farmers are neither inevitable nor irreversible. 

“I urge the government to use this Budget to pull farms out of survival mode, restore confidence and provide the foundations we need to produce high-quality, affordable food, whatever lies ahead,” he added.

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