Consultant Preston Waldon says the new government has the opportunity to make meaningful change
Despite bold promises, Labour’s early moves in agriculture are at risk of faltering as budgetary constraints jeopardise critical reforms.
That’s according to a new report from agricultural consultancy Preston Waldon, which points out that while initiatives such as the Water (Special Measures) Bill and precision crop breeding laws signal ambition, a £358 million underspend and looming cuts to Defra could bring progress to a standstill.
“As we delve into the findings of our report on the Labour government’s first 100 days in Number 10, it’s clear that we are witnessing a seismic shift in British agriculture,” said Alexander Preston, managing director of Preston Waldon.
“The shift from volume-driven production to a focus on environmental sustainability signals a bold new era. Our analysis reveals how these early decisions are not just policy changes; they represent the next decade of the agriculture industry.
“The insights shared in this report underscore the importance of collaboration between industry stakeholders and Defra, ensuring that policies align with the practical challenges our agriculture industry faces. As we navigate this evolving landscape, the potential for meaningful change is evident, and it is essential to engage in constructive dialogue to realise these opportunities.”
Ahead of the autumn Budget on 30 October, the report warns that insufficient funding may stifle innovation and growth in the agricultural sector. It particularly highlights that a £358mn underspend in agriculture over the past three years, coupled with potential Defra cuts estimated at £100 million, jeopardises long-term agricultural innovation.
On tax, it states that while there have been no changes to agricultural taxation in the first 100 days, the government is reviewing tax policies and exploring incentives for green technologies, raising concerns about the impact on Agricultural Property Relief.
It also highlights the recent introduction of new laws to facilitate the use of precision breeding technologies, including gene editing, to develop crops with enhanced traits for improved nutrition and climate resilience.
And it points to the fact that a review is underway to create a new plan that meets legally binding targets for environmental protection and restoration, with pledges to support farmers through updated Environmental Land Management schemes and new veterinary agreements.
The full report can be accessed here.
