The NFU has said the government has missed a huge opportunity to ease financial pressures on food-producing businesses by excluding agriculture from its British Industrial Competitiveness Scheme, which will see electricity bills cut by up to 25% for more than 10,000 manufacturers.
Despite these new measures, British farming – the backbone of the UK's largest manufacturing sector, food and drink – remains ineligible for this vital support.
Sectors that could benefit from the BICS (British Industrial Competitiveness Scheme) include automotive and aerospace, steel producers, metal fabricators, pharmaceutical and medical supplies companies, recycling businesses, plastic producers, nuclear fuel processors, and cooling and ventilation equipment manufacturers.
Growers facing costs alone
NFU President Tom Bradshaw said: "It is deeply frustrating that food has been forgotten again by the government despite acknowledging the crippling impact of high energy costs on other industries.
"Parts of the horticulture sector, for example, are incredibly energy-intensive growing tomatoes, cucumbers and peppers in heated glasshouses, and are grappling with the same global price volatility as any factory – yet are being left to face these surging costs alone."
Growers are being hit by a 'double whammy' of increased costs as the steepest increase to electricity standing charges comes into force this month. This also now sits against the backdrop of higher energy and fuel costs as a result of the ongoing conflict in Iran which is adding further pressure.
The NFU has been strongly arguing the industry's case to government. Director General Terry Jones wrote to Minister for Industry Chris McDonald to outline UK farming's concerns and the potential negative impact on national food production. It was followed by an NFU meeting with the Minister alongside parallel meetings with the Farming Minister.
Review eligibility urgently
The government has said eligibility has been expanded by 40%, with support targeted at 'energy-intensive firms'.
The NFU President warned that, by excluding farming, the government is "effectively putting a handbrake on investment, and our ability to produce a supply of sustainable, high-quality food ministers claim to support".
"The government must review the eligibility criteria for the BICS as a matter of urgency and look again at increases to electricity standing charges which have also come into force and are hitting horticulture businesses hard, or risk growers saying this fruit and veg is too expensive to grow," he added.
"If we want a resilient domestic food system, we cannot continue to treat farming as an optional extra in industrial policy. Our members need the same relief on electricity policy costs as other heavy users if they are to remain competitive and continue feeding the nation."
MPs back NFU calls
MPs have backed NFU calls for the inclusion of farming in the BICS.
Following the announcement of the scheme's expansion in the House of Commons, MPs called on Peter Kyle, Secretary of State for Business and Trade, to support domestic food production and raised concerns about the high input costs that farmers and growers are facing.
Chris Vince MP (Lab/Co-op, Harlow) told the Secretary of State that "glasshouse and greenhouse growers use a lot of electricity and gas, but they are not recognised as energy-intensive". He asked Peter Kyle to reflect on what steps the government could take to support "vital food producers" and appealed on behalf of NFU members, the Lea Valley Growers Association.
Deputy Leader of the Liberal Democrats, Daisy Cooper told the House that "the food and farming sector should have been included" in BICS, as well as "agri-tech businesses". Ms Cooper also raised concerns that the conflict in Iran would lead to food shortages and food inflation.
Liz Saville Roberts MP (Plaid Cymru, Dwyfor Meirionnydd) told the Secretary of State that "energy markets have a direct impact on agriculture" and reminded him that farmers are also facing "fertiliser price increases of up to 80%".
Conservative and Reform MPs also raised the exclusion of farming from the BICS.
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