The National Farmers’ Union (NFU) has issued a stark warning following Chancellor Rachel Reeves’ latest budget, unveiled on 30 October, saying the measures could be the “final straw” for farmers across Britain and may trigger food price rises for consumers.
Calling the budget a “blow to British farming,” NFU President Tom Bradshaw criticised the government’s failure to consider the strain already placed on farmers.
He argued that the added financial burden “will make producing food more expensive,” ultimately driving up consumer costs. “Farmers are down to the bone and gristle,” Bradshaw stated, questioning who would bear these added costs at a time when farmers are already stretched thin.
Property Relief Changes Spark Outrage
One of the most controversial policies outlined in the budget was the reform of agricultural property relief, set to be restructured from April 2026. Under the new guidelines, 100% relief will remain only on the first £1 million of combined agricultural and business assets, with the relief dropping to 50% on any assets above that threshold. Bradshaw called this a “shameless breaking” of Labour’s promises to support British agriculture, arguing that the move would strip the next generation of farmers of their ability to continue family businesses and conserve the countryside.
“When you look farmers in the eye and make them a promise, keep it,” he urged, arguing that these changes “snatch away much of the next generation’s ability to carry on producing British food.”
Cuts to Direct Payments and Higher Wages Add Pressure
The government’s accelerated phase-out of direct payments has further alarmed the NFU, especially for larger farming operations. Payments to farms that received over £100,000 in 2020 are set to drop to a maximum of £8,000 by 2025. With replacement schemes still leaving many businesses “locked out,” Bradshaw says farmers will be left “reeling,” facing significant cuts to income.
On top of this, a National Living Wage increase of 6.7% to £12.21 per hour, with the National Minimum Wage for 18 to 20-year-olds rising 16.3% to £10.00, has left many small farms bracing for extra costs they say they simply cannot absorb.
Future of British Farming at Risk
The combination of increased taxes, wage hikes, and reduced reliefs has raised “serious questions” over the viability of British farms, Bradshaw added, warning the budget will force many to break up family farms that have stood for generations. As agriculture costs continue to rise, Bradshaw believes these policies risk damaging the UK’s food security, driving prices up and making the sector less competitive on the global stage.
Despite a £2.6 billion agricultural budget maintained for England, reflecting an underspend by the previous government, the NFU argues the funding falls short in light of the drastic changes introduced by this budget.
“It’s clear the government does not understand that family farms are not only small farms, and that just because a farm is a valuable asset it doesn’t mean those who work it are wealthy,” Bradshaw emphasised.
The NFU’s concerns join a rising chorus of voices across the farming sector, all questioning how long British farms can survive under what they call an anti-growth agenda.
For more information visit: www.farminguk.com
