UK (Parliament Politics Magazine) – The UK government unexpectedly halted farming subsidies, leaving rural communities facing budget shortfalls, as farmers condemn the move as a major betrayal.
In a sudden decision, the government has suspended farming subsidies, delivering a fresh setback to rural communities. The replacement for the EU-era subsidy initiative was unexpectedly put on hold, creating budget gaps for thousands of farmers.
Officials have confirmed that the Sustainable Farming Incentive (SFI) will undergo revisions following June’s spending review, with a limit imposed on financial support for farmers.
National Farmers’ Union head views about the government’s move
Tom Bradshaw, president of the National Farmers’ Union, has expressed concerns regarding the government’s actions, describing them as “another betrayal.”
He linked it to last year’s controversial Budget decision, which imposed inheritance tax on farmers.
How will farmers replace subsidies amid SFI uncertainty?
Thousands of farmers are facing the phasing out of EU-era direct subsidies, leaving many uncertain about how they will replace this vital support.
Under the SFI framework, farmers are compensated for taking measures to improve their land, such as soil enhancement, hedgerow maintenance, and planting wildflowers to support biodiversity.
Farmers could earn approximately £3,000 annually for each action taken, with the flexibility to implement multiple modifications to their land without any limits.
Access to this funding has been suspended for several months for those who have yet to apply for the scheme.
Victoria Vyvyan, president of the Country Land and Business Association, called the move “the most cruel betrayal” so far.
How could the government’s new bill force farmers to sell land at a loss?
Under the government’s Planning and Infrastructure Bill, farmers might have to sell their fields at lower prices than their actual worth.
The proposed legislation would give power to councils to acquire land through compulsory purchase orders. They would pay the land’s existing value instead of its potential value if developed, as seen in the current system.
Farmers and landowners might be compelled to sell their land at significantly lower prices than expected under current regulations.
Amid rising discontent among farming communities, the government’s move to apply inheritance tax to agricultural properties in last year’s budget has raised concerns. Thousands of farmers have stated they may need to sell family-owned farms to cover the tax.
What did Tim Bonner say about the government’s latest proposals on inheritance tax?
Tim Bonner of the Countryside Alliance expressed concerns, highlighting that the government’s latest proposals are “a step too far,” particularly with the rising difficulties posed to farmers due to changes in inheritance tax.
He said,
“We have been supportive of many of the government’s changes to planning policy, but giving councils more power to reduce the value of land is a step too far, especially in the context of such a challenging outlook for farmers and the inheritance tax fiasco.”
Mr Bonner stated,
“This is not about people blocking development, it’s about the state paying the market price for land. We need more houses and more economic development, but not at the cost of basic principles.”
What did vice president of the National Farmers’ Union Rachel Hallos say about the government’s new bill?
In a statement, Rachel Hallos, Vice President of the National Farmers’ Union, stated,
“This Bill comes at a time when the UK farming industry is under immense financial pressure due to the loss of direct payments, extreme weather and the impacts of the family farm tax. So, farmers and landowners must be fully consulted every step of the way.”
Ms Hallos said,
“The housing minister told media today that these new powers would be used to access brownfield and urban land, and that must be the case. Anything else further undermines the government’s policy that food security is national security.”
How will inheritance tax changes impact family farms?
The inheritance tax changes will apply to farms valued at £1 million or more, with a 20% tax rate. The Treasury argued that only farms worth over £3 million will face the tax, affecting around 28% of family farms.
Official figures from the Department for Environment, Food and Rural Affairs indicate that up to 66% of farms may face the impact of the inheritance tax changes.
What did the Planning and Infrastructure Bill promise?
The government’s upcoming Planning and Infrastructure Bill seeks to introduce a series of reforms, including streamlining the planning process, revising environmental obligations, and providing energy bill discounts for communities located near new electricity pylons.
Labour plans to deliver 1.5 million homes and decisions on 150 essential infrastructure projects by the next election, aided by recent pledges to national planning policies and the new Planning and Infrastructure Bill.
The Deputy Prime Minister and Housing Secretary Angela Rayner promised to create “the biggest building boom in a generation” by “cutting through the bureaucratic hurdles that have been holding back developments for years.”