Bovine TB
Bovine TB continues to devastate family-run farming businesses across large parts of the country. In the 12 months to December 2023 over 20,243 cattle were slaughtered in England because of this disease, positively this was a decrease of 8% from the previous year.
NFU bTB Eradication strategy
The NFU’s TB Policy Advisory Group, alongside the national Dairy and Livestock boards, have developed a vision for bTB eradication from the perspective of farmers and food producers. This document builds short, medium, and long-term recommendations for the sector to eradicate the disease.
The strategy included seven key asks of government:
1. Maintain the existing bTB strategic approach until government review.
2. Provide clarity on the government’s plans to control TB in wildlife.
3. Consider the model of governance for bTB in England.
4. Set expectations on BCG cattle vaccination and the DIVA test. Provide a clear, publicly available strategy for how cattle vaccination will be used within the overall bTB eradication strategy.
5. Progress the new Livestock Information Service to provide additional information to allow more informed and effective business decisions, as well as improved understanding and effective management of bTB risk.
6. Review the range of TB licensed units and operating conditions to increase access for essential movement of animals into bio-secure outlets.
7. Greater flexibility and accessibility to validated novel tests to enhance disease management.
Defra TB Eradication Strategy – August 2024
A new TB Eradication Strategy was launched in August with the Government committing to work with farmers, vets, scientists and conservationists through the Bovine TB Partnership, of which the NFU is a member.
The Government has stated that it aims to end the badger cull within this Parliament, however existing cull licences will be honoured. The new strategy will also:
• Carry out the first badger population survey in over a decade.
• Commence a new national wildlife disease surveillance programme.
• Establish a new badger vaccination force.
• Begin an analysis of the effect of badger vaccination on TB incidence in cattle.
• Accelerate work on the development of a cattle vaccine with aims to deliver a strategy within the next few years.
Following a recent consultation, the Government will also publish additional information about animal and herd-level bTB risk e.g. date and type of the most recent TB tests in herds.
ibTB is also set to be updated with a greater level of detail to allow farmers and their vets to better understand the level of bTB in their areas and manage risk when purchasing cattle.
Bluetongue
Bluetongue (BTV) affects sheep, cattle and other ruminants. It is a viral disease spread by biting midges, which affects all ruminants (e.g. sheep, cattle, goats and deer) and camelids (such as llama and alpaca). The first case was confirmed in the UK on 10 November 2023.
Since 26 August 2024, the total number of BTV-3 cases for this season stands at 164 (as of 18 November).
BTV-12
A new bluetongue virus serotype 12 (BTV-12) has been detected on eight farms in four different provinces in the Netherlands.
None of these animals were imported from areas where BTV-12 is prevalent, and the Dutch variant does not resemble other known variants sufficiently to be able to indicate a specific origin. Therefore, the Dutch authorities are still investigating the source, they have discounted a link to vaccine use.
Vaccines
Defra’s Secretary of State has permitted the use of three unauthorised bluetongue serotype 3 (BTV-3) vaccines within the UK, subject to licence.
The BTV-3 vaccines claim to reduce viraemia rather than prevent it. This means they may not prevent animals from being infected or infectious, but may reduce or prevent clinical signs experienced, or mortality. For this reason, all movement controls and trade restrictions still apply to vaccinated animals.
Restricted and temporary control zones
The restricted zone (RZ) now covers much of the east of England. In South Region, parts of BB&O, Wiltshire, Hampshire and the Isle of Wight are under restrictions.
Movement restrictions apply to all ruminants and camelids moving out of the zone and the movement of their germinal products within the zone.
There are fourteen cases that are not in bluetongue zones, linked to animals that have moved to premises before bluetongue restrictions were put in place or through importing animals from countries close to where disease is present.
In the South Region, these premises have been in Bath and North East Somerset (BANES) and Cornwall. In addition to cases where disease was acquired in England, the UK CVO has confirmed BTV-3 in one animal imported into Devon.
Planning
- Budget announcements
- Planning and Infrastructure Bill
- Anticipated legislation
- New towns
- Environmental regulations
- NFU lobbying for planning improvements
Budget announcements
Nationally Significant Infrastructure Projects (NSIP)
The Government has committed to an increase of £5 million for the Nationally Significant Infrastructure Projects (NSIP) regime. NSIPs are projects that are considered too large scale or too technical for local authorities to determine themselves, so they are taken to a national body. The body will permit or refuse large infrastructure projects, as well as negotiates the terms of permissions.
The funding increase of £5 million will help support projects such as road upgrades, new electrical infrastructure and power generation. The NFU welcomes the increase in funding which will support stakeholder engagement and may increase diversification options for members.
Local Planning Authorities
Local Planning Authorities, which determine planning applications and create local planning policy are also seeing a budgetary boost of £46 million. The NFU highly welcomes this increase in spending. However, the new budget for planning authorities still pales in comparison to budgets a decade ago, being at just 10% of what has been lost.
The NFU has had a strong, long standing ask to have a fully funded and resourced planning system. The NFU especially has interest due to the disproportionate impact on more technical and specialised sectors such as farming and agriculture. The NFU has long stated that delays from lack of resources and been one of the biggest blockers to growth and modernisation in the agricultural sector.
National Planning Policy Framework reform
The National Planning Policy Framework is the highest-level planning document in England, serving to guide the formation of local plans, planning decisions, and defines planning terms.
A reformed NPPF is likely to be published before the end of 2024, however timelines are flexible. It is expected to include changes that will strongly support the mass development of housing, commercial and infrastructure projects.
This could increase pressures on land with less protection afforded to farmland from non-agricultural applications which could lead to loss of farmland.
Disappointingly, there is a lack of policy that supports farming and agriculture, which is a missed opportunity to offer opportunities and solutions for the industry.
The NFU has responded to the recent consultation, where we would like to see greater mentions of farming and agriculture and the industry included further in stakeholder discussions. The NFU would like to see farming and food production as an economic argument in the NPPF.
Planning and Infrastructure Bill
The Planning and Infrastructure Bill has yet to be introduced to Parliament and is unlikely to go through a formal consultation process. The NFU anticipates it will include changes to compulsory purchasing and legislation on new towns.
The Bill will allow for compulsory purchase of land at agricultural value (loss of “hope value”) where affordable housing and great public benefit is delivered.
Anticipated legislation
- Reform of compulsory purchasing
- Streamlining delivery of critical infrastructure – projects to moved from NSIP regime to Local Authority level
- Reform of planning committees
- Increased local planning authorities’ capacity
- Using development to fund nature recovery – there is very little detail on this but its likely to be linked to BNG, LNRSs, Nutrient Neutrality and Water Neutrality
New towns
The Government confirmed it intends to build multiple new towns, in part to achieve its target of building 1.5 million new homes over the next parliament. The Government is proceeding with this policy without pre-engagement with stakeholders
These new towns could include expansions of existing urban areas as well as developments on greenfield sites. The Government has stated each of the new settlements will contain at least 10,000 homes but little detail has been revealed about maximum size, number or location.
There is the potential for mass compulsory purchase of farmland and disruption to neighbouring agricultural operations.
The NFU has written to Ministers to ensure that the agriculture industry is included in stakeholder discussions.
Environmental Regulations blocking agricultural applications
Biodiversity Net Gain (BNG) introduced for all sites in April 2024, Nutrient Neutrality and Water Neutrality policies can have an impact on members planning applications even for small developments such as farm tracks and buildings.
BNG often requires mitigation and net gain to be enacted on site or in the surrounding landscape.
Nutrient Neutrality policy can block on farm developments such as slurry infrastructure and AD plants due to rules on short term emissions, without considering the positive benefits these projects can bring on long term emissions.
NFU lobbying for an improved planning system for agriculture
The NFU continues to lobby for an improved planning system for agriculture, we would like to see.
- Food production becoming a weighted argument in the planning system.
- An emphasis on mitigating the loss of best and most versatile farmland to non-agricultural development.
- Support for agricultural infrastructure (farm tracks, slurry tanks, packhouses etc) – made up some of NPPF response, these need to be supported to support the rural economy.
SFI (Sustainable Farming Incentive) / Farm subsidies
- Budget announcements
- ATP (Agricultural Transition Plan)
- Grant funding and schemes
- ELMs (Environmental Land Management schemes)
- SFI (Sustainable Farming Incentive)
- Countryside Stewardship Mid Tier and Higher Tier
- Landscape recovery
Budget announcements
Defra has announced that it will be prioritising direct investment in ELM schemes and consequently, will be accelerating the phaseout of direct payments. The fastest reductions will be for those farming businesses that previously received more than £100,000 in subsidies however no business will receive more than £7,200 in direct payments in 2025.
For 2025, Defra plans to apply a 76% reduction to the first £30,000 of a payment, while making no payments for any portion of a payment above £30,000. This rapid reduction in delinked payments will have a significant detrimental impact on farm businesses who we have not been expecting such a severe cut in direct payments
Defra will immediately pay out £60 million through the Farming Recovery Fund to support farmers affected by unprecedented extreme wet weather last winter.
ATP (Agricultural Transition Plan)
The ATP marks a change in agricultural and environmental policy. Direct payments are reducing progressively to 2027, and there is a greater focus on “public money for public good” through agri-environment schemes. Along with a focus on productivity improvements.
Grant funding and schemes
Defra has announced that it is intending to review their grant funding schemes, to ensure schemes are targeted to where they are needed and where they can provide the most benefit, in food security, nature and for small farmers.
The NFU is seeking clarification over the announcements over the last 15 months by the previous government on funding opportunities.
ELMs (Environmental Land Management schemes)
Under ELMs there are three separate schemes, Sustainable Farming Incentive (SFI), Countryside Stewardship (CS) and Landscape Recovery (LR).
ELM policy
The key policy principles to frame our ELMS policy are certainty, cashflow and transparency. These principles, capture our asks for ELMs and give consistency to our messaging.
- Certainty – ask Government to commit to SFI and 60% of the budget being spent on SFI; Lifting of the SFI expressions of interest process; and, making the full SFI and CS HT offer available to apply for ASAP.
- Cashflow – Getting SFI agreement offers out much, much faster; HLS payment uplift; transfers from legacy agreements to ELMs; no gaps between expiring and new agreements; action on uplands following our meeting with Ministers on farm; and ensuring a suitable offer is available for farmers.
- Transparency – Greater transparency on the budget; an impact assessment of the ATP policy food production, farm business viability and environmental delivery.
SFI (Sustainable Farming Incentive)
As of 12 November, an expression of interest is no longer needed to apply for SFI 2024, and the Expanded Offer can now be directly applied for through the RPA. However, SFI 2024 is not yet open for applications on common land.
Countryside Stewardship Mid Tier and Higher Tier
There are no new applications for CS Mid Tier, 2024 marks the last year for when Mid Teir agreements begin. The options available in CDMT have been integrated into the expanded SFI offer for 2024.
The previous government said it would be possible to move from CS Mid Tier or HLS agreement into SFI this autumn. Currently, anyone wanting to do this is required to contact the RPA. The NFU is lobbying the new government to put an automatic process in place to enable these agreement transfers to happen.
We are awaiting the publication of information for CS Higher Tier with the schemes expected to launch next year.
Farmers with expiring HLS or Higher Tier agri-environment agreements this year will be offered an extension to their existing agreement. Next year Defra will make it easier for legacy HLS agreements and those farming on commons to transfer into new schemes more smoothly.
Landscape Recovery
The Landscape Recovery scheme funds bespoke, landscape-scale, long term agreements that extend beyond 20 years. Current Round 1 pilot projects are approaching the end of their development phase and where agreements have been reached, will enter into delivery next year. In the South Region there are 22 Round 1 and Round 2 LR projects. We are expecting a call for bids for Round 3 by the end of the year.
Autumn Budget 2024
Chancellor of the Exchequer Rachel Reeves delivered her first Autumn Budget on 30 October 2024
The Chancellor stressed that Labour had inherited a challenging set of public finances from the previous government and announced £40 billion worth of tax rises that she said were necessary to rebuild public services and stabilise public finances. However, she reiterated Labour’s manifesto promise not to raise taxes on working people and again stated that economic growth was a central mission of the new Labour Government.
Inheritance Tax
From April 2026, an individual will only receive 100% relief on the first £1 million of agricultural and business assets under APR and BPR, with assets above £1m qualifying for 50% relief. The government suggest this is to help protect family farms and businesses. The NFU opposed any change to APR in its Budget submission to the Chancellor.
Meanwhile, the main rates of Capital Gains Tax (CGT) will be raised to 18% and 24% from the day of the Budget. The NFU suggested that if CGT rates were increased in the Budget, they should be adjusted to remove the effect of inflation
The government confirmed it will extend the existing scope of agricultural property relief from 6 April 2025 to land managed under an environmental agreement with, or on behalf of, the UK government, devolved governments, public bodies, local authorities, or approved responsible bodies. The NFU called for an extension to APR to ensure that farmers were not deterred from entering into environmental schemes for fear of losing Inheritance Tax relief.
Unused pension funds and death benefits payable from a pension will be included in the value of estates for Inheritance Tax purposes from 6 April 2027. This could affect farming families that plan to pass over non farming assets to non-farming heirs.
Agricultural Budget
The farming budget has been maintained at £2.4bn for 2025/26. Defra announced they will be prioritising direct investment in ELM schemes, where £1.8bn of the agriculture budget will be set aside this includes SFI, Countryside Stewardship Higher Tier and Landscape Recovery.
Consequently, Defra will be accelerating the phaseout of direct payments. The fastest reductions will be for those farming businesses that previously received more than £100,000 in subsidies. For 2025, Defra plan to apply a 76% reduction to the first £30,000 of a payment, while making no payments for any portion of a payment above £30,000. Therefore, no business will receive more than £7,200 in direct payments in 2025.
Defra will immediately pay out £60 million through the Farming Recovery Fund to support farmers affected by unprecedented extreme wet weather last winter. The NFU continues to call for the government to dedicate sufficient funding for maintaining and improving flood defences and managing waterways to protect farmland and allow for swifter recovery.
National Living Wage
The National Living Wage (NLW) will increase by 77p bringing it to £12.21, whilst the minimum wage for 18-20 years olds will rise by 16.3% to £10. Meanwhile, employers will also face an increase in the rate of employer national insurance contributions which will be increased by 1.2% to 15%. This comes alongside a decrease in the per employee threshold at which employers start to pay National Insurance, will be reduced by £4,100 per year to £5,000 per year.
The NFU asked as a minimum that the accommodation offset rate increases at the same percentage rate as NLW. This is reflected in the 6.7% increase to amount that employers can deduct from wages in respect of accommodation and can be included in a NLW calculation.
CBAM (Carbon Border Adjustment Mechanism)
The UK CBAM will be introduced on 1 January 2027, placing a carbon price on goods imported into the UK that are at risk of carbon leakage. This includes aluminium, cement, hydrogen, iron & steel and importantly for UK farmers – fertiliser sectors.
The implementation of the UK CBAM will increase the cost of fertiliser which is one of the primary costs of production for UK farmers and growers. The impact on domestic production costs will cause undermining the competitiveness of domestic agricultural production, both in domestic and international markets, against agricultural imports from jurisdictions where production utilises fertiliser inputs which are not subject to a carbon pricing regime
FHL (Furnished Holiday Lettings) tax regime
From 6 April 2025, the Government will be abolishing the Furnished Holiday Letting (FHL) tax regime. This will mean short-term and long-term lets will be treated the same for tax purposes. The NFU previously opposed an abolition in 2009 and is extremely concerned about this decision and urged for a full consultation ahead of the proposed abolition of the FHL regime.
Budget increases for planning services
The Government has also announced increases of £46 million for Local Planning Authorities and £5 million for the Nationally Significant Infrastructure Projects (NSIP) regime.
DCUP (Double Cab Pick Up)
From 1 April 2025 for Corporation Tax, and 6 April 2025 for income tax, Double Cab Pick Up (DCPUs) will be treated as cars for the purposes of capital allowances, benefits in kind, and some deductions from business profits. The existing capital allowances treatment will apply to those who purchase DCPUs before April 2025. This was announced earlier this year and after the NFU strongly objected this decision was reversed with legislation to follow.