A Cambridgeshire farming leader has cautiously welcomed the government’s announcement of an overall settlement of £7.4 billion for farming’s sponsor department, Defra, which matches previous budgets.

The government has announced there will be £2.7 billion for farming and nature recovery, which equates to an annual real terms cut of £100 million cut to farming and countryside programmes. This comes after the agriculture budget has already been eroded over the past decade by inflation, significantly reducing its spending power.

Moreover, the Chancellor also failed to reverse the devastating family farm tax which will mean many farming families continue to be left in the lurch, unable to afford the future tax bill.

NFU Cambridgeshire Chair Alison Morris, a fifth-generation arable farmer who farms near March, said: “The NFU has consistently lobbied for the agriculture budget to be protected so news that the overall funding for farming and nature recovery has been maintained will be welcomed by farmers and growers in Cambridgeshire.

placeholder image — NFU Cambridgeshire Chair Alison Morris.

“The NFU is seeking further details of the government’s Spending Review plans.

“We will continue to work with Defra to highlight how farmers can continue to drive the economy, deliver national food security and make a positive impact on the environment, with the right support in place.”

She added: “The fact that the government has still not made any announcements on reconsidering its family farm tax policy is very concerning.

“This poorly thought out and damaging policy threatens the future of small and medium-sized family farms and could have a devastating impact on our industry.

“The NFU will continue to engage with politicians from all political parties and wider stakeholders and make a strong case for the family farm tax policy to be reconsidered.”

NFU President Tom Bradshaw said: “While the Defra Secretary of State has listened and managed to maintain the overall funding for farming and nature recovery, from what we can see so far, the £100 million cut to farming means farmers and growers will need to do more with less.

“The devil will be in the detail. And it’s essential that the Environmental Land Management schemes will be accessible for all farmers.

“This government has repeatedly said it wants to deliver growth, and the Chancellor said that ‘economic security relies on our ability to make and sell more in Britain’, something the food and drink sector is primed to do. It is already the UK’s largest manufacturing sector, worth some £148 billion to the national economy and supports more than four million jobs. To help increase this, farmers must be included in the government’s industrial strategy and given access to the new investment announced to boost supply chain resilience, job creation, R&D and local economic growth.”