Environmental groups have raised concerns that efforts to enhance biodiversity across the UK countryside are under threat due to the government’s decision to freeze farm payment levels in England.

Farmers, already discontented with recent inheritance tax changes, were informed that public funding for agricultural payments will remain unchanged next year.

The Wildlife Trusts described the move as leaving a “monumental gap” between the current funding under the Environmental Land Management Scheme (ELMS) and the resources needed to support farmers in protecting wildlife, restoring habitats, and producing food sustainably.

Conservationists estimate that £3.1 billion is required for effective environmental farming schemes, but the government plans to maintain the current £2.4 billion budget through 2025/26.

One farmer expressed frustration, stating the government appeared out of touch with the dual pressures of food production and countryside stewardship.

James Grindal, a mixed arable and livestock farmer in Leicestershire, said: “I wouldn’t think the government has any idea.

“I think they ought to come and see the reality – the coalface of putting food on people’s plates.”

The announcement compounds discontent following the Chancellor’s Budget, which introduced changes to inheritance tax.

From April 2026, combined business and agricultural assets worth less than £1 million will remain exempt, but assets above this threshold will receive only 50% relief at an effective rate of 20%.

While some argue the policy targets large-scale landowners who purchase farmland for tax advantages, smaller family farms fear disproportionate impacts.

Farmer Mr. Grindal, who has two teenage sons, noted the potential double blow: increased costs for passing down the family farm and risks if landlords sell land he rents.

“I explained to my youngest son, who asked what the implications were, that if you take 20% off something every time someone dies, it’s not long before you get to nought,” he said.

“The Chancellor said she wants to protect small farms, but she is protecting the person who made a lot of money somewhere, bought a nice house with 20, 30, 50 acres to have a few horses on.”

Liberal Democrat environment spokesman Tim Farron said of the changes to agricultural property inheritance tax relief: “This is a family farm tax which risks ringing the death knell for local farmers and the small businesses who rely on them.”

Conservationists argue the budget freeze amounts to a real-terms cut, undermining sustainable farming goals.

Elliot Chapman-Jones, the Trusts’ head of public affairs, said: “Ultimately, there is a monumental gap between current funding and what is needed to reverse wildlife declines, clean up rivers and significantly reduce the use of chemicals on farms.”

Tom Lancaster, an analyst at the Energy and Climate Intelligence Unit, criticised the decision, saying it merely “maintains the status quo” and fails to address pressing environmental and agricultural challenges.

The Country Land and Business Association (CLA) echoed these concerns, with President Victoria Vyvyan warning that the freeze would further strain hard-pressed farmers.

She added: “It could hit sustainable food production and undermine improvements to wildlife habitats, flood management and access to nature.”

The government defended the £2.4 billion annual budget, claiming it represents the “largest-ever” funding for sustainable food production and nature recovery. However, critics argue that without increased investment, farmers will struggle to balance food production with critical biodiversity and conservation work.

 

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