Chancellor John Healey faces mounting pressure to increase support for farmers in the upcoming Budget to help curb rising food prices across the United Kingdom. Tom Bradshaw, president of the National Farmers’ Union (NFU), emphasized that strengthening domestic food production is crucial for enhancing food security and alleviating cost-of-living pressures for consumers.

Agricultural industry leaders have warned that food prices could surge further in the coming year, driven by extreme weather events and geopolitical tensions in the Middle East, which have contributed to higher energy expenses for farmers. The Food and Drink Federation projects food inflation to reach 4% by Christmas, with a peak forecasted at 6.4% by July 2027.

In a call for action ahead of the Budget announcement, NFU leaders urged the Chancellor to raise the investment threshold for farming businesses eligible for tax relief from £1 million to £5 million. Bradshaw noted that increased investment in farms not only bolsters local supply chains but also sustains demand for associated contractors and manufacturers, thereby supporting rural employment and economies.

Additionally, Bradshaw appealed to Healey to reverse planned changes to inheritance tax rules, which he argued pose a threat to family-owned farms. After a partial rollback last year, the NFU and other farming advocates continue to campaign against inheritance tax charges applied to farms for the first time, suggesting the current provisions remain detrimental to the viability of agricultural enterprises.

While the Chancellor is expected to confirm measures to reduce tariffs on fertiliser imports—aimed at lowering operational costs for farmers—critics have highlighted concerns over the simultaneous implementation of the Carbon Border Adjustment Mechanism (CBAM). The Treasury confirmed this scheme will increase the price of fertiliser imports into the UK, potentially offsetting any relief provided by tariff cuts.

Shadow Environment Secretary Victoria Atkins criticized the government's approach as inconsistent, arguing that farmers and rural businesses are facing unsustainable financial pressures. Atkins pointed to rising energy and labor costs, escalating regulatory burdens, and inheritance tax as factors contributing to the increasing expense of food for consumers.

In response to ongoing challenges, the Treasury has introduced five “everyday fixes” intended to ease operational difficulties for farming and rural communities, although details of these measures remain limited. As the Budget announcement approaches, stakeholders in the agricultural sector continue to seek more substantial government intervention to stabilize food prices and support the sustainability of UK farming.