Defra cuts threaten nature recovery, Reeves warned

Farmers and green groups have raised alarm over the potential for deep cuts to Defra’s budget in this week’s Spending Review – with fears that key farm support schemes could be scaled back or withdrawn.

Chancellor Rachel Reeves is due to announce departmental budgets on Wednesday, and with public spending under pressure, the future of the Environmental Land Management (ELM) scheme and other nature-focused initiatives hangs in the balance.

Martin Lines, chief executive of the Nature Friendly Farming Network (NFFN), said it remains unclear whether any reductions will affect Defra’s central operations or its arm’s-length bodies.

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“We know Defra, like all departments, is facing cuts,” he told Farmers Weekly.

“The real question is whether those cuts hit the core department and bodies like RPA, or the delivery side, like ELM. If it’s the latter, that could seriously impact schemes farmers rely on.”

RPA performance concerns

Mr Lines raised concerns about the performance of the Rural Payments Agency (RPA), describing it as having “designed a very complicated farm payments scheme” and noting a lack of responsiveness.

“People are not replying to emails, and SFI agreements are being delayed. Something is not working,” he said.

He added: “This is a public money for public goods budget. If we cut this funding, we are cutting the ability to build resilience in our landscapes – from food security to flood mitigation and carbon sequestration.

“This is the jeopardy we find ourselves in.”

The Spending Review on Wednesday 11 June will set departmental budgets through to 2029, amid pressure on public finances and reports of a possible 20% cut to Defra – with future farm funding in England expected to favour smaller farms over larger ones.

The UK government has declined to comment on the reports. 

Labour has repeatedly highlighted its £5bn rural and green investment pledge for 2024-2026, but Mr Lines warns that inflation significantly erodes its real value.

“It’s a real-terms cut. We’ve got the same budget as 10 years ago, yet farmers are being asked to deliver more,” he said.

David Walsh, head of public affairs at WWF, echoed these concerns. He said: “There’s no need for trade-offs between net zero, nature recovery and economic growth.

“This Spending Review must deliver on climate action – not delay it. The government has the targets; now we need the roadmap.”

Rural warning 

Meanwhile, Scottish Liberal Democrat MP Wendy Chamberlain warned the Labour government against treating rural communities with contempt.

“If these cuts go ahead, they risk the future of farming in this country – and with it, domestic food production and the restoration of nature,” she said.

With uncertainty swirling over how new Defra secretary Steve Reed will allocate funding, Mr Lines stressed the need for clarity.

“Farmers should brace for a moment of change. After 14 years of a Conservative government and now one year into a Labour government, one year into term in office, we’re still waiting to hear a clear vision and how they plan to deliver it.”