NFU urges chancellor to restore farm confidence ahead of spring statement

Tom Bradshaw says uncertainty is “stopping investment” across the industry (Photo: NFU)

The NFU has called on the chancellor to deliver concrete backing for British farming in the spring forecast, warning that confidence in the sector is near historic lows.

The intervention comes as farm businesses grapple with rising input costs, volatile markets and prolonged policy uncertainty.

Confidence is widely regarded as being at or near historic lows, compounded by concern over planned changes to inheritance tax relief from April 2026, which many fear could undermine succession planning and long-term viability.

In a letter to Rachel Reeves ahead of the spring forecast on 3 March, the union outlined what it described as practical steps to increase productivity and unlock long-term investment.

These include the effective use of tax reliefs to support reinvestment — such as capital allowances and measures that provide clarity over inheritance tax — alongside a stable policy framework to encourage investor confidence.

The NFU is also urging the government to maintain the current reduced rates of fuel duty for red diesel, warning that any change would significantly increase operating costs for machinery-intensive farm businesses.

NFU president Tom Bradshaw said that although “we have seen some common sense prevail on inheritance tax”, the wider industry remains under severe strain.

He said many businesses are operating on “razor-thin margins” and facing uncertainty that is “stopping investment”.

British farming, he added, underpins the food and drink sector, worth £153 billion to the UK economy and supporting hundreds of thousands of jobs.

“To build on this and to continue to drive economic growth, we have set out our priorities clearly to the chancellor,” he said.

Mr Bradshaw argued that clearer tax incentives, stronger energy resilience and long-term policy stability would help create “a more resilient, thriving and profitable farming industry”.

Such measures are essential, he said, to “encourage the investment required to feed the nation’s 70 million people”.

With next week’s NFU Conference in Birmingham themed ‘Building Farming’s Resilience’, Mr Bradshaw said the actions proposed would help create “a positive climate where farmers and growers have the confidence to invest for the long-term and build resilience”.

The Treasury has yet to respond publicly to the NFU’s proposals but has signalled its intention to prioritise fiscal discipline ahead of the Spring Forecast.

All eyes will now be on the chancellor’s statement to see whether the government matches its growth ambitions with practical support for primary producers.

The NFU Conference takes place on 24-25 February at the ICC in Birmingham.