Budget – tariff cuts ‘unlikely to make meaningful difference’, says NFU

Twenty-four hours before the Budget, Chancellor John Healey has announced a series of tariff cuts including the tariff on fertilisers in a bid to help farmers.

The NFU believes that the benefit to farm businesses of any tariff removal is likely to be minimal, including on fertiliser, with NFU President Tom Bradshaw highlighting that “much bigger factors are driving fertiliser costs”.

Any savings will depend on whether it is passed down the supply chain and whether the products covered reflect those actually used by UK agriculture.

NFU President Tom Bradshaw said: “Unfortunately, the fertiliser tariff reductions being talked about today are unlikely to make a meaningful difference to farm businesses or household food bills.

“The government still has time to back British farming and our food producers in tomorrow’s Budget. It can ensure the Carbon Border Adjustment Mechanism does not disadvantage domestic producers by increasing fertiliser costs; it can widen the scope Annual Investment Allowance scope to support infrastructure such as reservoirs; and it can reverse changes to Agricultural Property Relief and Business Property Relief.”

To read our 2026 Budget asks, visit: Key Autumn Budget asks – NFU writes to the Chancellor

Many imports already tariff free

Tom continued: “While it is right our government looks to strengthen its resilience by reducing tariffs on imported fertiliser, in reality much already comes to the UK tariff free.”

Almost 90% of the UK’s food imports are already duty free and so will be unaffected by the tariff cuts, including EU countries, Egypt and Algeria.

Impact unlikely

Tom added: “Any impact at farm level will depend hugely on whether the products covered are those UK farmers use and whether those reductions are passed through the supply chain.

“As we have said repeatedly, strengthening domestic food production is the best way to improve food security and cost of living pressures.”