£100m cuts announced: ‘Farmers will need to do more with less’
11th June 2025
The Spending Review announced by chancellor Rachel Reeves has been “cautiously welcomed” by farming industry leaders, despite cuts.
Chancellor Rachel Reeves has delivered her much-anticipated Spending Review this afternoon.
She announced, among other things, that the spending on the NHS will rise by 3% a year, £39 billion will be provided for social and affordable housing, and defence spending will also receive a boost.
The news that DEFRA has received £7.4 billion, which matches previous budgets, has been “cautiously welcomed” by NFU president Tom Bradshaw.
The Labour government has also announced that there will be £2.7 billion for farming and nature recovery, but within this there will be a £100 million cut to farming and countryside programmes.
These include the Sustainable Farming Incentive, Countryside Stewardship, Landscape Recovery and capital grants.
This comes after the agriculture budget has already been eroded over the past decade by inflation, significantly reducing its spending power.
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 to get involved.”
Mr Bradshaw added that farmers must be included in the government’s industrial strategy and given access to the new investment announced today to boost supply chain resilience, job creation, R&D and local economic growth.
‘Incredibly disappointing’ decision
The NFU president added: “The chancellor also said that this government ‘cares about where things are made and who makes them’. But British farmers and growers haven’t felt this applies to them, and their confidence has been battered by constantly moving policy goalposts, global volatility and unpredictable climate events.
“In this age of insecurity, will the government back up its manifesto statement that food security is national security, and give farmers and growers the certainty and confidence to invest in their future?”
Mr Bradshaw said that failure to reverse the devastating family farm tax has been “incredibly disappointing”.
“We still need more details and the NFU will continue to work with Defra as it makes important decisions about how this money will be spent,” he concluded.
‘Investing in nature-friendly farming isn’t a luxury’
The Nature Friendly Farming Network (NFFN) has welcmed the spending review with “cautious optimism”.
The farmer-led organisation warned that current levels of funding still fall short of what’s needed to meet the UK’s legally binding climate and nature targets. Future spending increases must be part of any serious strategy for land use, food security and farm resilience.
Martin Lines, CEO of the Nature Friendly Farming Network (NFFN), said: “Given the challenging economic climate, it’s a relief that the budget for nature-friendly farming has been largely protected. Ministers have listened to our calls to recognise the value of nature-friendly farming and what it can do.
“However, the challenges facing food production, biodiversity and climate resilience demand far greater ambition. Without increased investment, we risk falling short of our national commitments and letting down the very farmers ready to lead the transition.
“Investing in nature-friendly farming isn’t a luxury — it’s essential to future-proof British farming, protect our communities, and secure our food production. This investment benefits everyone, whether protecting communities from devastating flooding, supporting affordable renewable energy or ensuring high-quality food is available on supermarket shelves.“
Read more political news.
