CLA reacts to Spending Review
OVERALL Defra budget cut but billions pledged for farming, flood defences and nature
Following intensive lobbying from the CLA (Country Land and Business Association) amid
speculation of heavy budget cuts, the Chancellor has confirmed billions will be spent on farming,
flood defences and nature recovery. The CLA has welcomed the news that farming will receive
£2.7bn a year from April 2026, and Environment Land Management (ELMs) payments will go up to
£2bn by 2028/29.
Flood defences will see an investment of £4.2bn, with a 5% increase in spending. Tree planting
will receive £816m, environmental schemes £5.9bn and £85m for peatland restoration. There is still
some uncertainty over how this money will be distributed, and we will continue to engage with
Defra to ensure this is delivered.
Country Land and Business Association (CLA) President Victoria Vyvyan said: “While we still need
further detail, it is clear that this is a meaningful funding settlement. Many farmers will be breathing
a sigh of relief.
“We now need Defra to work closely with industry to understand how to get the best bang for
their buck – to further the impressive gains we have already made in nature-friendly farming. Trust
and confidence have been shaken, and this is an opportunity to rebuild.
“It is clear though that government still has not fully understood the consequences of its anti-
business policies. Taxes are going up, jobs are being lost and investment in the rural economy is
crumbling. Now is the time to get around the table with rural business leaders and thrash out a
robust and ambitious plan for growth.”
