AIC Response to Government Spending Review
The Agricultural Industries Confederation (AIC), representing over 230 Member businesses across the UK agri-supply chain, responds to yesterday’s (11 June 2025) Government Spending Review with a call for continued collaboration and clarity in light of reduced departmental resources.
Key Announcements
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A 2.7% reduction in government spending over five years, equating to a total funding allocation of £7.4 billion.
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This includes:
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£2.3 billion for the Farming and Countryside Programme
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£400 million for additional nature projects
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£150 million for agricultural innovation, supporting the development and adoption of new technologies across the sector
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Within this, the Department for Environment, Food and Rural Affairs (Defra) will be expected to deliver £144 million in savings by 2028/29, with £106 million of that to be made by arm's-length bodies such as the Animal and Plant Health Agency (APHA), the Environment Agency, and the Rural Payments Agency (RPA).
“The announcement presents both challenges and opportunities for the agri-supply sector. While the reduction in Defra’s and arm's-length bodies’ resources is a concern, we remain hopeful that through continued collaboration and clear communication, the department can maintain delivery of its core functions. We welcome the government’s drive to modernise the department through digital service improvements, as well as the funding confirmation for sustainable farming schemes. We stand ready to work together to ensure that essential services and long-term goals are not compromised,” said Robert Sheasby, Chief Executive of AIC.
Next Steps
To navigate these constraints effectively, Defra must prioritise open, transparent engagement with industry partners. AIC encourages proactive dialogue to ensure that policy implementation remains practical and aligned with sector needs.
It is equally important that Defra’s core functions continue to operate reliably, providing the confidence and consistency on which businesses depend. A strong, sustained partnership between the Government and industry will be critical to driving economic growth and maintaining essential services.
AIC will continue to engage with policymakers to ensure the sector’s voice is heard. Our priorities include:
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Promoting sustainability and climate action through support for low-carbon farming practices, renewable energy, and environmentally responsible inputs.
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Securing a stable, science-based regulatory and trade environment that enables innovation, competitiveness, and smooth UK-EU market access.
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Investing in skills and workforce development to build a resilient, future-ready agri-supply chain through technical training and rural apprenticeships.
Authors
Ed Barker
