Recent spending review figures reveal that Labour is reducing England’s nature-friendly farming budget by £100m each year. Despite the cut, farming and environmental groups express cautious relief. Many had feared deeper reductions from the Treasury.
Farmers already face financial strain due to Labour’s inheritance tax on farms valued over £1m. Extreme weather and rising costs have worsened their struggles. A steeper budget cut could have severely harmed the sector.
Ministers also hinted that larger farms may lose access to nature-friendly farming funds soon. Defra recently reversed a freeze on new applicants after the National Farmers’ Union (NFU) threatened legal action.
Research by the RSPB warns that a £100m yearly cut could shrink nature-friendly farmland by 239,000 hectares. Defra claims payments under Environmental Land Management Schemes (Elms) will rise sharply. They project funding will jump from £800m in 2023-24 to £2bn by 2028-29.
However, the NFU calls this misleading. Post-Brexit, farmers were promised £2.4bn yearly, matching EU subsidy levels. The Elms program, designed by the Conservatives, rewards farmers for boosting nature rather than acreage. Basic Payment Scheme (BPS) funds are being phased out by 2028.
NFU economist Sanjay Dhanda accuses Defra of misrepresenting the figures. He argues Elms wasn’t fully operational in 2023-24, skewing comparisons. Defra counters that the previous government underspent its £2.4bn annual pledge by £100m.
NFU President Tom Bradshaw acknowledges Defra’s efforts to protect overall funding. Still, he warns farmers must now “do more with less.” Former Farming Minister Mark Spencer criticizes the cuts, saying Tory plans would have prioritized Elms funding.
Nature organizations credit Environment Secretary Steve Reed for safeguarding most of the nature-friendly farming budget. National Trust Director Hilary McGrady praises Reed for securing funds despite financial challenges.
Defra denies reports of a £1.2bn three-year slash. Instead, they highlight a record £5.9bn investment in nature-friendly farming schemes. The debate continues as farmers and conservationists weigh the long-term impacts of these changes.
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