Farmers 'breathe sigh of relief' at funding in Spending Review

Defra will see a 2.7 per cent reduction in day-to-day spending, but a 2.5 per cent increase in capital investment - including £4.2bn on flood defences.

This will see £2.7bn a year spent on the farming budget, with the amount for Environment Land Management scheme (ELMs) payments increasing from £800m to £2bn by 2028-29.

A Labour source told The Yorkshire Post that Environment Secretary Steve Reed had secured “a strong financial settlement contrary to media reports saying nature farming schemes were going to be slashed”.

Country Land and Business Association (CLA) President Victoria Vyvyan said: “While we still need further detail, it is clear that this is a meaningful funding settlement.

“Many farmers will be breathing a sigh of relief.

“We now need Defra to work closely with industry to understand how to get the best bang for their buck – to further the impressive gains we have already made in nature-friendly farming.

“Trust and confidence have been shaken, and this is an opportunity to rebuild.”

National Farmers’ Union President Tom Bradshaw praised Mr Reed for his work in Spending Review negotiations with Chancellor Rachel Reeves

He said: “Relentless NFU lobbying and leadership, convening agriculture and environmental groups, has seen the agriculture budget protected against rumours of significant cuts.

“I am pleased the government has listened, and credit should go to Defra Secretary of State Steve Reed for his work in maintaining a budget against such a tough financial backdrop.

“However, many big questions still need to be answered. In this age of insecurity, will this government now recognise that food security is a critical part of national security?

“How will the government realise all of its ambitions for the natural environment with a budget that's been cut in real terms?”

There was no announcement around the controversial inheritance tax policy, as any changes would be updated at a fiscal event like the Budget.

However there is no sign Ms Reeves is prepared to budge on that.

Sources pointed to the 5 per cent increase in flood defence spending as a big win for Mr Reed.

The Environment Secretary had previously pledged £7m to the latest phase of the Stallingborough Sea Defences along the Humber estuary, and additional investment in Conisbrough, near Doncaster, and Appleton, in North Yorkshire.

Labour claimed that the Spending Review will see the largest investment into nature in history, with more than £7bn going towards nature recovery.

This includes £816m going towards tree planting and £85m for peatlands to improve water quality and biodiversity.

However, as part of its budget for the next four years, Defra will have to make 5 per cent of efficiency savings.