The Chancellor confirmed in her Autumn Budget that some social and environmental policy levies would be removed from electricity bills and instead transferred to general taxation, thereby cutting the costs of domestic (but not non-domestic) electricity supplies.
Rachel Reeves also confirmed she would be scrapping the ECO (Energy Company Obligation) which together will remove around £150 of costs on average from household energy bills across Great Britain from April 2026. While this is welcome, it does not address the presently high cost of electricity for non-domestic bill payers.
“We need better recognition of the energy intensity of agriculture and horticulture so farmers and growers can access the support afforded to other industries.”
NFU President Tom Bradshaw
The only support mentioned in the Budget document for non-domestic energy users refers to the Network Charging Compensation scheme and the upcoming British Industrial Competitiveness scheme, neither of which energy-intensive farmers and growers qualify for.
Increased charges to come into force
Responding to the news, NFU President Tom Bradshaw said: “We have been warning that spiralling energy costs are adding huge inflationary pressures in the supply chain, and it’s disappointing to see the Budget failing to recognise the impact this has on farmers and growers.
The NFU President warned that forthcoming changes to standing charges in the spring “are still set to hit businesses hard”. The increases, phased in from October 2025 to April 2026, could see charges rise sharply, putting significant pressure on high- and seasonal-energy users.
Read more about how increases to standing charges could affect you.
“We need better recognition of the energy intensity of agriculture and horticulture so farmers and growers can access the support afforded to other industries,” Tom added. “As the government looks to mitigate food price inflation this would be a significant step to stop impending inflationary pressure.”
What else was announced in the Autumn Budget?
Explore our links below to find out what else was announced for farming.
