In the Spring Statement, Chancellor Rachel Reeves aimed to reduce spending to comply with her own fiscal rules, as rising borrowing costs, weaker than expected economic growth and the turbulence of a 鈥渨orld changing before our eyes鈥� wiped out the 拢9.9 billion headroom she left in the Autumn Budget.
NFU President Tom Bradshaw said he agreed with the Chancellor that 鈥渙ur world is changing, and we are facing an increasingly insecure global stage鈥�.
鈥淪afeguarding our food security is an essential part of the nation鈥檚 ability to remain resilient to international shocks,鈥� he said.
鈥淭he government鈥檚 own manifesto said food security is national security.
鈥淏ut the policies announced since the election have only delivered blow after blow to farmers and growers鈥� confidence which is now at an all-time low, with investment plummeting.鈥�
Foundations for food security
NFU President Tom Bradshaw鈥檚 message to government was clear: 鈥淲e want to work with the government to deliver the foundations for food security, economic growth and environmental delivery and we have the blueprints to support this.
鈥淲e will continue to make the case for investment ahead of the comprehensive Spending Review.鈥�
In the days leading up to today鈥檚 Spring Statement, the NFU joined forces with more than 50 farming and environment organisations to call on the Chancellor not to cut Defra鈥檚 farming budget following the sudden closure of SFI24 applications.
What was announced?
Introducing her Spring Statement, Ms Reeves again said the fiscal rules were 鈥渘on-negotiable鈥�, but revealed that latest OBR (Office for Budget Responsibility) forecast had shown 鈥榬ule one鈥� 鈥� that day-to-day spending be met by tax receipts 鈥� would now have been missed by 拢4.1bn in 2029-30.
The OBR had also downgraded its growth forecast for the coming year, she said, from 2% to 1% but it had upgraded growth for the next four years.
Measures announced included an extra 拢2.2bn of defence spending, to include 鈥渘ew novel technologies鈥�, procurement reform, skilled jobs at new 鈥渁dvanced manufacturing facilities鈥�, investment at the UK鈥檚 nuclear submarine site in Barrow, and a new body to drive value for money.
The Chancellor set out an aspiration to make the UK 鈥渁 defence industrial superpower鈥�.
A boost from recent planning reforms and the government's house building aspirations, Ms Reeves said the OBR had forecasted these to increase GDP by 0.2% to 2029-30, an additional 拢6.8bn per year.
鈥�We will continue to make the case for investment ahead of the comprehensive Spending Review.鈥�
NFU President Tom Bradshaw
There will be reforms to cut the costs of running government by 15% and deliver 拢2bn of savings by 2029-30, including the already-announced abolition of NHS England and a voluntary exit scheme for civil servants.
Meanwhile, 拢3.25bn of public service reforms under a 鈥榯ransformation fund鈥� will boost efficiency, invest in AI and technology tools and deliver a further 拢3.5bn of savings by 2029-30.
In a positive move, following persistent NFU lobbying, the government also announced its plans to invest more than 拢800,000 in the National Rural Crime and Wildlife Crime units this week. More is needed but it is a good start.
皇家华人will continue to represent and fight for its members on the family farm tax, SFI and a raft of key policy measures included in our Blueprints for Growth.
