Farming budget trimmed – despite rural pressure

Farmers in England will see £100 million cut from the farming and countryside budget, following Labour’s first spending review.

The Government has pledged to maintain a £2.7 billion annual commitment to farming and nature recovery until 2029. But within that total, funding for core schemes – such as the Sustainable Farming Incentive and Countryside Stewardship – will fall.

The National Farmers’ Union (NFU) has pointed out that although Defra’s total farming budget remains flat in cash terms, inflation effectively reduces it by 2.3% in real terms. At the same time, input costs have soared – rising nearly 30% since 2020.

“Farmers and growers will need to do more with less,” said NFU President Tom Bradshaw.

After Brexit, the Government had pledged to match the £2.4 billion annually that farmers previously received through EU schemes. However, the combined farming budget now averages £2.3 billion, with projections showing a further decline to £2.25 billion by 2029.

Despite these cuts, many in the industry were expecting deeper reductions, and the outcome has provided some relief. Still, major concerns persist about the long-term outlook for food production and rural investment.

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NFU President Tom Bradshaw has raised key questions around national priorities:

“In this age of insecurity, will the Government back up its manifesto statement that food security is national security, and give farmers and growers the certainty and confidence to invest in their future?”