Labour Party Conference: What has Steve Reed said about the ag budget?

With fears the £2.4bn ag budget could be reduced in the chancellor’s autumn statement, environment secretary Steve Reed faced questions from farming groups at the Labour Party Conference.

Ahead of the Labour government’s first budget on 30^th October, it has said it needs to plug a £22 billion gap.  

Coupled with recent news that the previous government underspent £358 million of the agriculture budget over three years, there are fears the budget could be cut, and the underspent funding lost.

Steve Reed on funding plans

Asked by the Farming Today programme what the future holds for the agriculture budget, environment secretary Steve Reed said:

“Announcements like that happen in the budget so I’m afraid everyone’s going to have to wait until the budget to hear the details.” 

He added: “I see it as absolutely my job to fight farmers’ corner through the spending review and that’s what I’ve been doing. 

“Of course we have to all recognise the appalling financial inheritance that we had from the previous Conservative government.”

Mr Reed added that the government wants to make farming a more attractive prospect for private sector investment. 

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Additionally, it’s looking at reducing energy bills by moving to a clean energy economy, setting up GB Energy to help harness the power of wind wave solar and nuclear energy. 

Planning reforms will also make it easier for farmers to invest in their own clean energy and wire it up to the grid faster, he added.

Other plans including seeking a new veterinary deal with the EU to get British exports moving, and publishing the Land Use Framework “this side of Christmas”, after which a 12-week consultation will follow. 

Mr Reed also confirmed that they are “not going to overturn the apple cart” on the Sustainable Farming Incentive, but will let it “bed in” rather than making changes.

We need to know the destination

During a fringe panel event at the conference, NFU president Tom Bradshaw said farmers are carrying too much of the burden of risk and many will be asking themselves if they can plant next year’s crop. 

He reiterated calls to roll over the underspent agriculture budget to future years. 

In a panel debate with farming minister Daniel Zeichner, Congleton MP Sarah Russell and Ceres Rural’s Charlie Ireland, the ag budget featured heavily.

Mr Bradshaw said: “I don’t think any of us know where government policy is taking us – what is the vision for what we want this country to stand for? 

“We need to know what that destination is and we need the business framework to enable our members to thrive.

“We need Defra to be up for this challenge as well. 

“If we don’t change their mindset you can have all the best ambition in the world but the mindset of the team delivering it have to make sure they’re up for it as well.”

Really exciting opportunity

Mr Zeichner said he recognised stability was key for the sector. 

He reiterated the government’s commitment to ensure farmers won’t be undercut by low welfare and standards in trade deals, and spoke of his work in seeking a new veterinary agreement with the EU.

Mr Bradshaw called for a core set of standards that make it illegal to import food produced to lower standards than we have here in the UK.

Charlie Ireland added: “We have a really exciting opportunity here for food production as land use across Europe is trying to find its direction…

“We have the opportunity to create a world leading agricultural system where land use is dynamic and flexible.

“We are a broad church, but the one common thread is stability. We need that confidence to invest for the future.”

Access to funding

Flooding formed another key part of the debate, with 65 flood alerts in place at the time of the discussion.

Mr Bradshaw said he hoped there would be an update on the Farming Recovery Fund to support farmers affected by flooding.

“It’s absolutely crucial we get that money out of the door to those farmers who were promised it many months ago.”

The funding was first announced in January and the NFU has worked with the RPA and Defra to help develop the offer.

Planning permission was another hot topic, brought up repeatedly by audience members and panellists alike.

As an example, Mr Ireland said that if he applied for a grant, he would have nine months to use that funding but it could take up to three years to get planning permission. 

“That’s stopping opportunities for diversification for farming businesses.”

In his closing remarks, the minister said the government “has a passion to get this right”.

“My message to you is I am your minister and this is an ongoing dialogue.”

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