Independent Batters Review Proposes 57 Recommendations to Boost UK Farm Profitability Amidst Tax and Cost Concerns
An independent review led by Baroness Minette Batters has published 57 recommendations aimed at enhancing the productivity, investment, and resilience of UK farm businesses. The report highlights rising farm costs, which could be approximately 30% higher in 2026 compared to 2020, while noting that England's farming budget of £2.4 billion has remained largely unchanged since 2007.
Farmers have expressed feelings of bewilderment and fear about the future, particularly concerning proposed inheritance tax changes that would impose a 20% rate from April 2026 on farm businesses valued above £1 million. The review did not analyze these tax changes in detail. CLA President Gavin Lane emphasized that farm profitability is often slim or even loss-making, warning that inheritance tax bills could exceed annual profits.
Baroness Batters called for a new deal to support profitable farming, including the establishment of a farming and food partnership board focused on promoting growth and long-term profitability. Environment Secretary Emma Reynolds pledged that the government will work more closely with farming and food industries, undertaking actions such as planning reform, accelerating the development of on-farm reservoirs, easing the use of polytunnels and farm shops, and addressing barriers to investment.
NFU President Tom Bradshaw stressed the importance of fairness within the supply chain and called for clarity on the Sustainable Farming Incentive alongside the inheritance tax changes. Defra indicated that forthcoming efforts will also address supply chain fairness, overcome private finance obstacles, and support exports and new market development.
