NFU Scotland’s (NFUS) president has said that the union is “deeply disappointed” with the government’s decision to not extend higher energy relief to the agricultural sector.
Following the announcement of the Spring Budget, Martin Kennedy said: “Despite the strongest representation from all parts of the UK, the budget has not been used as a platform to extend the highest level of energy relief available under the Energy and Trade Intensive Energy Scheme (ETTI) to key agricultural sectors after March 31.
“NFUS has been lobbying for horticulture, poultry and pig production to be included in the ETII Scheme. The four UK farming unions also wrote jointly to the Department for Energy Security and Net Zero (DESNEZ) highlighting that unless the scheme is amended to provide a higher level of relief, there could be a reduction in domestic food production.
“That risks longer running food price inflation for consumers and could also negatively impact the thousands of supply chain companies that are sustained by the farming sector.”
From April 2023, the ETTI scheme will provide high level energy relief to several sectors including food processing and manufacturing but currently excludes primary agricultural production.
Mr Kennedy said failing to address that in the budget is a failure to address growing food security concerns and raises the prospect of more empty shelves appearing in stores.
NFUS director of policy, Jonnie Hall said: “With food and drink the biggest manufacturing sector in Scotland, there is a good case to be made that additional monies coming to Scotland via Barnett consequentials are earmarked for capital spend within the agricultural and agri-food sectors and help deliver the Good Food Nation Act or greener targets related to lower emissions and water quality. Potential recipients could be an injection of funds into processing capacity, such as local abattoirs or with specific targeted areas such as assisting farmers to comply with new rules around slurry storage.
