With the Spring Statement set to be announced on Wednesday 26 March, there has been much media speculation as to what may be included, with many reporting that departmental cuts could be on the horizon.
To stay within her self-imposed fiscal rules, the Chancellor will either have to raise taxes or cut spending. This could see further cuts within Defra, which will need to be found from existing programmes, putting agricultural spending at risk.
The NFU joined organisations including Wildlife and Countryside Link, the RSPB, and the National Trust to voice concerns that any cuts to the farming budget would ‘massively hamper’ the government’s ability to meet its legally binding nature and climate targets, and undercut ambitions to support a sustainable, globally competitive food and farming sector.
The group of 50 plus organisations has called on Defra to increase the farming budget to meet these aims.
Multi-year future farming budget
The news follows the sudden closure of SFI24 applications at the start of the month, which has left many farm businesses reeling, and called into question Defra’s lack of transparency over its budget.
New YouGov polling for Wildlife and Countryside Link has found that only 13% of the public think the government made the right decision to stop applications.
NFU President Tom Bradshaw said: “Thousands of farmers across the country have signed up to government schemes – which were designed to replace the old EU agricultural support mechanisms and to provide environmental services for society – and thousands more were planning to, only to discover that applications closed suddenly overnight.
“Any cuts to the agriculture budget will make it impossible for government to deliver its commitments to support a sustainable, productive farming sector.”
NFU President Tom Bradshaw
“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.
“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.
“Any cuts to the agriculture budget will make it impossible for government to deliver its commitments to support a sustainable, productive farming sector.”
Budget breakdown
The NFU has consistently called for an annual agricultural budget for England of around £4 billion which it says is needed to deliver the government's goals. Respecting the nature of devolved government, we estimate this would translate to a UK-wide budget of around £5.6 billion.
We’ve continued making the case to government and, ahead of the Spring Statement and Spending Review this year, NFU President Tom Bradshaw wrote to the Chancellor with a detailed submission regarding a new deal for British farmers.
