Food security and environment at risk from Labour budget cuts

Anger at closure of  green scheme

Farm leaders have urged the government to renew its commitment to food production and the environment following a series of cuts and tax rises.

The warning follows last month’s closure of the Sustainable Farming Incentive to new applications with immediate effect – and the harder, faster phase-out of the Basic Payment Scheme announced last autumn.

Measures coming into effect this month include a rise in employers’ national insurance contributions – and the reclassification of farm pickups so they are treated as company cars for tax purposes.

NFU president Tom Bradshaw said thousands of farmers across the country had signed up to government schemes to provide environmental services for society, only to discover that applications closed suddenly overnight.

“This puts the vital work being done by farmers and growers as stewards of the countryside at risk, from delivering healthier soils to new habitat for wildlife, all while producing the nation’s food.”

Mr Bradshaw added: “If government really seeks to end short-term economic policy-making, then it must confirm a multi-year future farming budget which is adequate to deliver government goals.

Bigger budget

More than 50 farming and environment groups say Defra’s nature-friendly farming budget should be increased to meet nature and climate targets and ensure sustainable, wildlife-friendly food production.

It comes as YouGov polling for the Wildlife and Countryside Link shows that only 13% of the public think the government made the right decision in suspending the Sustainable Farming Incentive (see panel).

The poll also confirms that most Brits feel increased nature-friendly farming grants would have a positive impact. Some 51% of respondents say food security would be positively impacted by increased grants.

A further 73% of surveu respondents say more funding would benefit wildlife, with 57% saying an increase would help to boost rural communities. Meanwhile, 69%, 70% and 56% say that river, soil and air pollution would be positively affected.

Farm businesses

The RSPB said investment in nature-friendly farming must be protected – and ideally increased – to ensure farm businesses could produce food while helping the UK meet its legally binding climate and nature targets.

RSPB chief executive Beccy Speight said: “Farmers need to be at the heart of this complex and vital challenge but that won’t happen without long-term commitments and sufficient financial support.”

Nature Friendly Farming Network chief executive Martin Lines said: “Farmers are facing growing uncertainty and a sense of being continually undermined, especially following the sudden closure of the SFI.

“Many have been left without support or a clear route forward, just as they need to be planning ahead. People across the country can see the pressure farmers and wildlife are under – and recognise that both need support.”

The government says it has secured the largest budget for sustainable food production in the country’s history, with £5 billion being spent to support farmers and nature-friendly farming over a two-year period.

Details awaited on ‘new’ SFI scheme

A revised Sustainable Farming Incentive is expected to be announced this summer – but unlikely to reopen before next year.

Defra officials are working on a new version of the SFI after the government closed the 2024 scheme to applications with immediate effect, saying the budget for the scheme had been fully allocated

Farm minister Daniel Zeichner said: “We have now successfully allocated the SFI24 budget as promised.” He added: “More farmers are now in schemes and more money is being spent through them than ever before.”

Defra says the revised SFI will be “underpinned by the government’s cast iron commitment to food security, focusing on food production [and] creating more resilient farm businesses alongside supporting nature recovery.”

It says the new scheme will be designed to ensure it delivers value for money for taxpayers. The budget will be capped and strong budgetary controls put in place so it is affordable to the public purse.