Government’s food export promotion budget to be cut

Country Land and Business Association (CLA) president Victoria Vyvyan has accused the Labour government of “dismantling the rural economy”.

Her comments are in response to news that the government is slashing funds for food export promotion, reported by The Times newspaper.

It comes after weeks of other bad news for farmers, including the planned reduction in agricultural property relief (APR), increases in staffing costs, a sharp drop in direct payments for farmers in England, and a planned carbon tax on imported fertilisers.

See also: Questions being asked about Defra’s ‘missing millions’

Last week, Defra also announced that it was suspending 76 capital grants to new applicants due to budgetary pressures.

“The government promised to be the party of the countryside,” said Ms Vyvyan. “Instead, it is dismantling the economy that sustains it.

“Vital schemes for sustainable farming and agricultural exports are being slashed, while inheritance tax raids threaten to take what little profit remains.

“The government isn’t saving money, it’s throwing it away. British food can boost our balance of payments, and rural communities could add £40bn to the economy.

“But they need a government that matches their ambition, not one that cuts it down.”

According to The Times, spending on advertising campaigns which showcase British food and drink producers to businesses and consumers overseas has been cut by 25%, from around £1.4m.

Additionally, a Farming for the Future scheme, which had £450,000 earmarked for next year to boost take-up of grants and schemes for landowners has been cut entirely.

The paper says the funding cuts are part of a crackdown on government marketing designed to save £132m.

A government spokesperson told the paper it made “no apologies” for challenging how taxpayers’ money is spent.

“We are entirely focused on driving efficiency across government, and have reviewed the hundreds of millions spent each year on government communications and marketing campaigns – identifying £85m in immediate savings.”

British food would still be promoted abroad through other international campaigns.