The UK Government’s Autumn Budget, on October 30, will be a crucial day for the agricultural sector writes NFU Scotland’s political affairs manager Beatrice Morrice.

Beatrice adds: “The Labour party manifesto for the recent General Election made no mention of its plans for agricultural funding. The current funding commitment only ran to the end of the previous parliament, so 30 October will be when farmers and crofters understand more about the new UK Government’s plans.

“That is why NFU Scotland will be in Westminster this week meeting politicians and Treasury officials; have a presence at the forthcoming Labour Party Conference and be back in London meeting leading politicians in early October ahead of the budget.

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“At each of these meetings, we will highlight our key asks and continue to underline the importance of future funding for our sector.

“To back that up, NFU Scotland submitted a detailed budget submission to the UK Government following Chancellor, Rachael Reeves MP, commissioning the Treasury to conduct a spending audit.

“Our submission underlined the need for an increased, multi-annual, ring-fenced agriculture and rural economy funding commitment in the budget. That was backed up by evidence of all that a thriving farming and crofting sector delivers in relation to food security, climate change and nature, rural communities and economic growth. We understand that there is significant pressure on the overall UK Budget, however agricultural funding needs to be considered in the context of all that our farmers and crofters deliver.

“There has been a real terms erosion in the value of current support at the same time farmers and crofters are being tasked with more in terms of policy objectives. Without adequate funding from the UK Government, the majority of farmers in Scotland would cease to be viable. We need government funding to be able to deliver these vital outcomes.

“If the UK Government wants to secure food production and the upstream and downstream socio-economic multipliers that are critical to wider rural prosperity, our budget must be increased. An increase would continue to provide a significant return on investment, generate more growth and employment and deliver the climate and nature outcomes that are vital to all our futures. The public interests embedded in sustainable food production, tackling climate change, enhancing biodiversity and underpinning vibrant rural communities cannot be understated or overlooked.”

A full copy of NFU Scotland’s Budget submission to UK Government is available by request from media@nfus.org.uk

 

The five key elements in NFU Scotland’s budget submission are:

Delivering a return of investment

Economic multipliers associated with Scottish agriculture are significant. Farmers and crofters generate economic activity and employment throughout Scotland.

Agriculture is a direct contributor to economic output and also a key driver of broader economic and social benefits, particularly in rural areas.

£550 million of current direct support from UK Government funding to Scottish agriculture generates an output of £3.3 billion. Every £1 of public support is converted into about £6 of output.

Analysis of just 12 farms across Scotland showed an annual spend of £12.6 million annually with over 722 supply chain businesses.

Delivering for climate and nature recovery

An increase in agricultural funding will help deliver climate and nature outcomes.

As guardians of over 70 per cent of Scotland’s land mass, our members help deliver the climate and biodiversity policy objectives of both governments.

Support payments are also increasingly tied to environmental stewardship, encouraging practices that preserve biodiversity, protect landscapes, and contribute to climate goals.

Delivering food security

Maintaining the availability and affordability of high-quality food for consumers across the UK will help to deliver food security.

Sustainable domestic agricultural production rather than relying on importing food is important. We cannot rely on complete food supply from other countries. Affordable high-quality food is being made here and our producers need funding to continue to deliver this.

Delivering for rural communities

Thousands of supply chain companies are supported by our farmers. Any reduction in future agricultural budgets would impact businesses that rely on the spending of active farming and crofting and put at risk the upstream socio-economic multipliers that are critical to wider rural prosperity across Scotland.

Delivering economic growth

Farming is the first link in the international renowned food and drink sector that is worth billions both domestically and through Scottish exports.

Any reduction in funding would undermine Scotland and the UK’s aspirations to grow the food and drink sector, as the major plank of green economic growth.

Beatrice Morrice

Beatrice joined NFU Scotland in May 2021 as political affairs manager. She was previously the Head of Engagement at the Scotch Whisky Association where she worked on issues including the environment, taxation and trade. Prior to this, she held a similar role at the British Medical Association. She has extensive experience in public affairs in both Holyrood and Westminster and an in- depth understanding of governments and legislation. She graduated from Heriot Watt University with a degree in Russian and French interpretation and translation.