Autumn Budget 2024: comment on outcome for farming
Autumn Budget 2024 release: farming outcomes comment
By Tom Lancaster
info@eciu.netShare
Last updated:
Responding to today’s budget [1] Tom Lancaster, land, food and farming analyst at the Energy and Climate Intelligence Unit (ECIU) said:
“The budget outcome for farming is clearly a mixed bag, and it’s important to recognise that many farmers face tough times at the moment. Defra has maintained the £2.4 billion farming budget [2], alongside £200m per year for new woodland and peatland restoration [3]. By accelerating the transition away from legacy subsidies [4], they have created the headroom they need to continue the roll out new green farming schemes [5], with small, more marginal hill farmers the likely winners.
“All this Budget does though is maintain the status quo, just about keeping the show on the road for now. Much more funding [6] will be needed at the next spending review to support farmers, avoid jeopardising climate targets, and boost the resilience of farming to climate impacts like the devastating wet winter we experienced this year [7].”
Notes to editors:
1. Autumn Budget 2024: https://www.gov.uk/government/publications/autumn-budget-2024 (-> eciu.us8.list-manage.com)
[2] The government have maintained the farming budget in England at £2.4 billion in 2025/26.
[3] They have committed to £400m for peatland restoration and woodland creation this financial year and next. This broadly reflect the current level of funding associated with the previous Governments Nature for Climate Fund (NfCF).
[4] In order to maintain the planned roll out of new environmental land management schemes within a flat budget, Defra have had to reduce legacy EU-era subsidies faster than has been the case to date, especially for larger holdings. Without doing this, they would have possibly had to delay their green farming schemes or close the schemes to new applicants.
[5] The headroom created by the actions noted under [3] will allow for the Countryside Stewardship higher tier to launch as planned early next year. This scheme is the most important aspect of Defra’s environmental land management schemes for nature and climate targets, and disproportionately benefits hill farmers and those with high levels of semi-natural habitat.
[6] Funding estimates to meet climate and nature targets suggest a budget of at least £3billion per year in England, and up to £6billion across the UK https://www.wildlifetrusts.org/sites/default/files/2024-07/Scale%20of%20Need%20Report%20July%202024%20FINAL.pdf (-> eciu.us8.list-manage.com)
[7] https://eciu.net/media/press-releases/2024/confirmed-england-has-second-worst-harvest-on-record-with-fears-mounting-for-2025 (-> eciu.us8.list-manage.com)
For more information or for interview requests:
Tom Lancaster, Land, food and farming analyst, ECIU, Tel: 07703006738, email: tom.lancaster@eciu.net