Scottish gov urged to deliver for farming after 'crippling' UK budget

(Photo: NFU Scotland President Martin Kennedy)
(Photo: NFU Scotland President Martin Kennedy)

The Scottish government has been urged to deliver a budget 'for Scottish food and farming' following the UK government's 'crippling' inheritance tax measures.

NFU Scotland President Martin Kennedy used the AgriScot event to remind First Minister John Swinney that the 'ball is now firmly and exclusively' with the Scottish government.

He warned that the Labour government's recent budget had 'hammered' family farms and crofts due to the inheritance tax changes contained within it.

It also saw the UK government 'wash its hands' of a commitment to multi-annual, ring-fenced funding for farming that had been in place for half a century.

The Scottish government's budget is due to take place on 4 December, with the industry seeking more funding directed toward Scottish agriculture.

During his AgriScot speech, Mr Kennedy also urged all farmers and crofters to join the planned rally outside the Scottish Parliament on 28 November.

This is taking part in a show of strength to highlight what the industry delivers for Scotland and its economy.

Mr Kennedy, who steps down as president in February 2025, said: “From a future funding perspective, that ball is now firmly and exclusively within the gift of Scottish government.

"And that is why we need all those with the best interests of our farming, crofting and food industries at heart to be outside Holyrood on 28 November in a show of strength.”

He said that Scottish farmers and crofters were being asked to do 'more and more' on a support budget with only half the buying power it had 10 years ago.

"The blunt fact is that whatever funding now goes towards Scottish agriculture is 100% within the power of Scottish government," Mr Kennedy added.

“Scottish government cabinet ministers are on record saying agriculture now needs an uplift in funding dependent on an uplift in funding from the UK government.

“That significant uplift is now there, so it is time for Scottish government to deliver."

Scotland’s block grant is to increase by £1.5 billion in the current financial year, followed by another £3.4 billion in the next.

This is a record settlement from the UK government, with the NFU Scotland saying it must be reflected in a significant uplift in the Scottish agriculture budget.

The union said that the Scottish government, in 2022 and 2023, 'raided' the agricultural budget, with £46 million still outstanding.

Mr Kennedy told AgriScot: "The budget on 4 December must see the Scottish government show, despite the UK government’s decisions, that it is willing to support the agricultural sector in Scotland.

“It must use the uplift in the block grant to put in place a five-year multi-annual budget that drives our agricultural industry, acting as a catalyst for our £16bn food and drink industry.

"That is the strong signal that this industry deserves," he concluded.