Despite these new measures, British farming – the backbone of the UK’s largest manufacturing sector, food and drink – remains ineligible for this vital support.
Sectors that could benefit from the BICS (British Industrial Competitiveness Scheme) include automotive and aerospace, steel producers, metal fabricators, pharmaceutical and medical supplies companies, recycling businesses, plastic producers, nuclear fuel processors, and cooling and ventilation equipment manufacturers.
Growers facing costs alone
“It is deeply frustrating that food has been forgotten again by the government despite acknowledging the crippling impact of high energy costs on other industries.”
NFU President Tom Bradshaw
NFU President Tom Bradshaw said: “It is deeply frustrating that food has been forgotten again by the government despite acknowledging the crippling impact of high energy costs on other industries.
“Parts of the horticulture sector, for example, are incredibly energy-intensive growing tomatoes, cucumbers and peppers in heated glasshouses, and are grappling with the same global price volatility as any factory – yet are being left to face these surging costs alone.”
Growers are being hit by a ‘double whammy’ of increased costs as the steepest increase to electricity standing charges comes into force this month. This also now sits against the backdrop of higher energy and fuel costs as a result of the ongoing conflict in Iran which is adding further pressure.
The NFU has been strongly arguing the industry’s case to government. Director General Terry Jones wrote to Minister for Industry Chris McDonald to outline UK farming’s concerns and the potential negative impact on national food production. It was followed by an NFU meeting with the Minister alongside parallel meetings with the Farming Minister.
Review eligibility urgently
The government has said eligibility has been expanded by 40%, with support targeted at ‘energy-intensive firms’.
The NFU President warned that, by excluding farming, the government is “effectively putting a handbrake on investment, and our ability to produce a supply of sustainable, high-quality food ministers claim to support”.
“The government must review the eligibility criteria for the BICS as a matter of urgency and look again at increases to electricity standing charges which have also come into force and are hitting horticulture businesses hard, or risk growers saying this fruit and veg is too expensive to grow,” he added.
“If we want a resilient domestic food system, we cannot continue to treat farming as an optional extra in industrial policy. Our members need the same relief on electricity policy costs as other heavy users if they are to remain competitive and continue feeding the nation.”
