Budget must deliver CBAM protections for British farming, says NFU
Ahead of the Budget, NFU Deputy President Paul Tompkins reacts as government publishes illustrative rates for the Carbon Border Adjustment Mechanism which reveal that the new tax is set to increase year on year.
The NFU is warning that the UK’s impending CBAM (Carbon Border Adjustment Mechanism) must not place domestic food producers at a competitive disadvantage against imports.
As government published illustrative rates for the CBAM, the NFU said the new tax is designed to ramp up year on year, adding ever growing costs to fertiliser at a time when farming businesses are already facing huge inflationary pressures.
As one of the NFU’s five key asks of the Chancellor ahead of the Budget, the warning serves as a reminder to government that policies must support our food security and not undermine it.
“If government is true to its word that ‘food security is national security’, then the Chancellor must announce measures at the Budget that actually reduces the cost of producing food, not increases it, builds resilience in the sector and restores farm business confidence.”
NFU Deputy President Paul Tompkins
Domestic producers left at ‘competitive disadvantage’
NFU Deputy President Paul Tompkins said: “Fertiliser is essential for British farmers and growers as we work to produce the nation’s food. Yet, the ammonia it is made from is no longer produced in the UK, leaving us with no choice but to buy from overseas. A tax on those fertiliser imports is most likely to be felt by farmers who are already operating on the tightest of margins and can’t simply absorb these extra costs or pass them on.
“Unbelievably, food grown overseas with fertiliser will not be subject to the same tax, leaving domestic food production at a competitive disadvantage.
“If government is true to its word that ‘food security is national security’, then the Chancellor must announce measures at the Budget that actually reduces the cost of producing food, not increases it, builds resilience in the sector and restores farm business confidence.”
