NFU and retailers urge Budget action to strengthen Britain’s food security
Photograph: Alex MacNaughton / Alamy Stock Photo
The NFU and major retailers are urging the government for Budget action to unlock billions for British food production, saying tax reform would boost farm investment and strengthen UK food security.
The NFU has joined forces with the UK’s leading supermarket retailers to call on the Chancellor to use the upcoming Budget to unlock billions of pounds of private investment in British food production and strengthen the nation’s food security.
In a joint letter, the consortium warns that Britain’s farmers and growers are being held back from making vital long-term business decisions because current tax rules fail to adequately support investment in essential farm infrastructure.
The government is therefore being urged to boost the Annual Investment Allowance to £5 million and extend it to cover farm buildings and other essential production assets.
The proposed change would incentivise investment in critical infrastructure such as reservoirs for water storage, polytunnels, housing for poultry and livestock and renewable energy to help improve productivity, resilience and sustainability across the food supply chain.
What you need to know
- NFU brings together nine major retailers to back our Budget asks on the Annual Investment Allowance
- UK self-sufficiency has fallen in 10 of 11 key food categories
- Tax reform would boost farm investment and strengthen UK food security
"Extending the Annual Investment Allowance to include buildings and critical farm infrastructure would send a clear signal that the government does actually mean it when they say, “food security is national security”, that they support economic growth and back British farming.”
NFU President Tom Bradshaw
Last month, NFU analysis revealed that UK self-sufficiency has declined in 10 of the 11 everyday food categories examined, while agri-food import volumes have risen by 70% over the past three decades.
The signatories to the letter argue that farm businesses are eager to invest and grow, but that the current tax system can make major capital projects financially difficult or unattractive despite their long-term benefits for the resilience of the nation’s food supply chain.
Clear sign from government
NFU President Tom Bradshaw said: “British farmers and growers want to invest in the future. They want to increase productivity, improve efficiency, reduce environmental impacts and strengthen domestic food production. But too often the tax system works against these investments rather than supporting them.
“Extending the Annual Investment Allowance to include buildings and critical farm infrastructure would send a clear signal that the government does actually mean it when they say, “food security is national security”, that they support economic growth and back British farming.
“This is about strengthening the foundations of our food system and building resilience in the sector for decades to come.”
Investing in the nation’s food security
Jim Bligh, Director of Corporate Affairs at the British Retail Consortium, said: “Investing in British food production is an investment in the nation’s food security.
“Helping farmers improve productivity and resilience will strengthen domestic supply chains, support economic growth, and help retailers keep high-quality British food on the shelves at prices customers can afford.”
The NFU and the retailers have offered to work with HM Treasury and Defra on the detailed design and implementation of the measure.
Major retailer backing
The letter was signed by:
- NFU President Tom Bradshaw
- Aldi UK
- Asda Stores Ltd
- Co-operative Group ltd
- Lidl GB
- M&S Foods
- Morrisons
- Sainsbury’s
- Tesco plc
- Waitrose and Partners
