The National Farmers’ Union (NFU) has stated that Government missed the opportunity to ease financial pressures on food producers following the expansion of the British Industrial Competitiveness Scheme (BICS).
New measures within the BICS will reportedly cut electricity bills by up to 25% for more than 10,000 manufacturers, but NFU identified that British farming remained ineligible for the support.
The expansion of the BICS saw an extra 3,000 businesses set to be covered, including those from the automotive, aerospace, steel and pharmaceutical sectors. From April 2027, eligible firms will see electricity bills cut by up to 25%, and households will see no increase in their bills as a result.
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.”
“By excluding farming, the Government is effectively putting a handbrake on investment.”
Bradshaw continued: “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. This is a major missed opportunity to bolster national food security at a time of significant geopolitical uncertainty.
“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.
“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.”
