Food security at stake as NFU presses for Budget support
© David Smith/Alamy Stock Photo The NFU has urged the chancellor to make food security a central priority of the Autumn Budget, warning that rising costs, disease, drought and global instability are leaving farm businesses increasingly vulnerable.
The union has called for the upcoming Budget to be “relentlessly focused” on cutting the cost of producing food, restoring confidence and strengthening Britain’s food security.
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In its submission to HM Treasury, the NFU warns that a combination of drought, disease and geopolitical turmoil has weakened the resilience of farm businesses and home-grown food production – with implications for national security.
NFU president Tom Bradshaw said: “The government has recognised that food security is national security. We now need the economic policies and investment to back that up.”
He said farmers and growers had endured a bleak year, with rising production costs, the worst drought in 50 years and the largest-ever bluetongue disease outbreak in livestock putting farm businesses under severe pressure.
“No sector has been left unscathed, confidence is low and investment has suffered,” Mr Bradshaw said.
Five key demands
To stabilise the sector and protect the 29m UK households relying on secure, affordable food supplies, the NFU has outlined five critical priorities for HM Treasury for the Budget on 30 October:
Increase the annual investment allowance: Raise the threshold to at least £5m to unlock long-term productivity and water management investments.
Emergency support loans: Introduce temporary, interest-free “Keep Britain Growing Loans” for businesses hit hard by summer crises.
Carbon border adjustment safeguards: Ensure the upcoming Carbon Border Adjustment Mechanism (Cbam) does not give imports an unfair advantage over domestic producers, particularly through higher fertiliser costs.
Protect inheritance tax relief: Reverse changes to agricultural and business property relief (APR and BPR) to give families confidence in future succession.
Low-carbon incentives: Implement enhanced capital allowances to accelerate adoption of green technology and infrastructure.
Mr Bradshaw said: “While we can’t control global volatility, we can take control of our food system here at home.”
He added: “Resilient farm businesses should be considered a strategic asset. They produce the food we all depend on and, with the right fiscal policies, can help protect households from the effects of economic and climatic shocks.”
The NFU says the stakes extend well beyond individual farms, with 29m UK households dependent on an affordable and secure food supply.
It also points to farming’s role in the food and drink sector, described as Britain’s largest manufacturing sector, worth £162.3bn and supporting 4.1m jobs.
FUW lobbying
The Farmers’ Union of Wales (FUW) has also stepped up pressure ahead of the Budget, meeting Plaid Cymru Westminster spokesman for environment and rural affairs Ann Davies MP to discuss the financial pressures facing Welsh family farms.
Inheritance tax was a central concern, with the FUW calling for agricultural and business assets to remain fully relieved from inheritance tax when transferred between generations for farming purposes.
The union also proposed tax incentives for landlords offering longer tenancy agreements to new and young agricultural entrants, alongside a dedicated UK emergency fund to help farmers facing crises including bluetongue, wildfires and fodder shortages.