Labour Cuts Farming Budget by £100m Amid Broader Nature-Friendly Investment

Strategic Insights -

Farming and nature groups have cautiously welcomed Labour's £100m cut to England's farming budget, despite the decrease, due to concerns the Treasury might have reduced the funding further. The move comes on the heels of mass protests from farmers over inheritance tax on farms worth more than £1m and increased financial pressures due to extreme weather and rising input prices. The Department for Environment, Food & Rural Affairs (Defra) has reassured that the nature-friendly farming fund will continue to grow, but the National Farmers' Union (NFU) has called this "misleading" due to past promises and subsidies.

Key Takeaways:

  • Labour is cutting the farming budget in England by £100m annually.
  • The budget decrease has been welcomed by nature and farming groups due to fears the Treasury had planned to reduce funding further.
  • The Department for Environment, Food & Rural Affairs (Defra) has announced that funding for environment land management schemes (Elms) will "skyrocket" from £800m in 2023-24 to £2bn in 2028-29, but this has been disputed by the National Farmers' Union (NFU).
  • The NFU contends that past promises and subsidies under the EU system were supposed to continue, leading to a figure of £2.4bn a year.
  • Previous research by the RSPB has found that a £100m a year cut would lead to 239,000 fewer hectares (590,580 acres) of nature-friendly farmland.
  • Farmers currently get £2.4bn a year in the two streams (Elms and BPS) as well as a smaller amount of money in grants for things such as robotics trials.
  • The government has promised an average of £2.3bn a year up to 2028-29 for the farming budget. By the end of the spending period, the budget will shrink to £2.25bn, with £2bn allocated for Elms and the rest paid in productivity grants.

Statistics:

  • £100m: The annual cut to England's farming budget announced by Labour.
  • £800m: The funding Defra said would be spent on environment land management schemes (Elms) in 2023-24.
  • £2bn: The funding for Elms expected in 2028-29 as promised by Defra.
  • £239,000 hectares: The estimated reduction in nature-friendly farmland due to a £100m a year cut, according to previous RSPB research.
  • £2.4bn: The annual figure promised to farmers under the EU system.
  • £590,580 acres: The equivalent acres for the estimated reduction in nature-friendly farmland.

Sources:

  • Labour Party
  • Department for Environment, Food & Rural Affairs (Defra)
  • National Farmers' Union (NFU)
  • RSPB
  • National Trust
  • BBC News
  • The Guardian