British farmers will see a reduction in fertiliser costs from Thursday, but rural campaigners have warned the move barely addresses the wider pressures facing the countryside. The Government has announced a cut in tariffs on imported fertiliser, effective Thursday, November 26, as part of a package aimed at easing pressure on household and business budgets. The measure is intended to lower prices by allowing importers to source fertiliser from a wider range of countries, including some that currently face a tariff.
Countryside Alliance calls for more action
The Countryside Alliance has urged Chancellor John Healey to go further in Wednesday's Budget, arguing that soaring energy and fuel bills continue to strain farmers. The group has submitted 10 policy proposals to the Chancellor, including making the 5p fuel duty cut permanent, considering a temporary VAT cut on fuel, and reducing the non-domestic VAT rate on heating oil, which many off-grid rural homes and businesses rely on.
David Bean, of the Countryside Alliance, said: "A cut in fertiliser tariffs, hopefully leading to price reductions, is welcome given the strain that the whole food and farming sector is under." He added: "It makes no sense for the government to be adding to farmers' costs deliberately."
Broader pressures on the sector
Mr Bean warned that the tariff cut addresses only one of several challenges facing the sector. He said: "Fertiliser prices are, however, only one of a whole series of pressures being heaped on the sector, not least the costs of energy and fuel." He added: "We hope the government use the Budget to reset their relationship with rural people."
Labour has previously faced criticism over changes to inheritance tax for family farms, funding cuts for some rural councils, and a new packaging tax that has increased costs for the food industry. The tariff reduction follows a difficult period for the Government in rural areas, with farmers still unhappy about the so-called Family Farm Tax.
Government defends the measure
Environment Secretary Dame Angela Eagle insisted the Government was on farmers' side. She said: "This government is taking decisive action to help ease rising input costs, giving farming businesses more room to breathe." She added: "Cutting fertiliser tariffs is a straightforward way to back British agriculture, strengthen supply chains and support the sector."
Dame Angela continued: "This will help ease the pressure on farmers while opening up more choice and supporting food production here at home." The measure was announced in a Treasury package billed as "everyday fixes" intended to "give families a bit of breathing space". Tariffs are also being cut on more than 100 products, including baked beans, chocolate and gherkins, which the Treasury says will save households up to £21 a year on their food shop.
Mr Healey will deliver his first Budget as Chancellor on Wednesday, October 28, with the Office for Budget Responsibility publishing its latest economic forecast on the same day. He is also expected to confirm a 3.9% rise in the national living wage, taking it from £12.71 to around £13.20 an hour from April 2027.
