UK reduces nature-friendly farming fund in upcoming spending review

According to sources at the Department for Environment, Food and Rural Affairs (Defra), the UK government is set to significantly reduce its post-Brexit funding for nature-friendly farming as part of a broader departmental spending review scheduled for 11 June.

While the current £5 billion package for environmentally sustainable farming, pledged by Labour for 2024 to 2026, will remain in place, the fund will reportedly face deep cuts thereafter. Funding will be restricted primarily to small-scale farms, excluding larger landowners from access to environmental payments.

The scheme, introduced to replace the European Union’s Common Agricultural Policy, was designed to compensate farmers for environmental stewardship—such as soil management and habitat restoration—rather than production volumes or land ownership. Many farms have come to rely on these payments to maintain financial viability.

Officials indicated that future support will be concentrated in areas assessed as having high ecological potential, including upland regions and peatlands, with incentives for farmers to halt cultivation in sensitive zones. Eligibility will be limited, with an emphasis on smaller holdings; large farms and wealthier landowners are expected to be excluded from the scheme.

Environmental organisations have raised concerns about the impact of the policy shift. They argue it risks forcing farmers to intensify production to remain profitable, as government subsidies for sustainable land management are withdrawn.

The cuts to farm support are expected to coincide with other departmental reductions, notably in policing, social housing, and environmental protection. The Planning and Infrastructure Bill, which removes EU-derived environmental safeguards, is also under scrutiny. Critics say the combined measures could lead to a substantial decline in biodiversity across the UK.

In parallel, the Ministry of Housing and Local Government is reviewing biodiversity net gain rules for developers. The current regulations require a 10% improvement in natural habitats on development sites. Under proposed changes, smaller sites—up to 49 homes—may be exempted or subject to simplified compliance requirements.

Craig Bennett, chief executive of The Wildlife Trusts, expressed concern over proposals to fund nature recovery through private investment via the new Nature Restoration Fund, instead of continued public financing.

“We need decent funding for farmers to do nature recovery and decent funding for nature recovery in the wider countryside,” Bennett said. “If we start merging those together, I don’t see how we are going to make progress on our domestic and international targets.”

Source: The Guardian