Raise farming budget to GBP 3bn

Budget baseline

Reform's farm pledge was to increase England's annual farming budget to GBP 3bn, from around GBP 2.4bn, and to scrap climate-related farming subsidies.

• England farming budget was around GBP 2.4bn.
• Target budget is GBP 3bn.
• Climate-scheme design changes materially.

Core trade-offs

Farmers gain more direct support and less scheme complexity. Environmental payments may be weakened, and consumers do not necessarily see lower food prices.

• Farmers gain budget support.
• Taxpayers fund higher spending.
• Environmental outcomes may worsen.

Illustrative fiscal impact

+GBP 0.3bn to +GBP 2.5bn. Central estimate: +GBP 1.0bn.

• Positive numbers mean public-finance pressure; negative numbers mean Exchequer savings.
• GBP 3bn budget is the main scale marker.
• Gross costs and receipt offsets are separated in methodology.
• Behaviour and pass-through widen the range.
• This is not an official costing.

Economic impact by 2027-28

• Jobs: Supports farm incomes and some rural employment, but labour shortages remain.
• Wages: Farm household incomes may rise; worker wage effects are uncertain.
• Prices: Little guaranteed food-price reduction unless supply expands materially.
• GDP / productivity: Could be neutral or negative if payments weaken environmental productivity and resilience.

Assessment

The policy is a relatively small fiscal item compared with tax pledges, but it still needs clear objectives. More farm support helps producers, especially smaller farms, but scrapping climate-linked schemes risks losing environmental and resilience benefits. Lower consumer prices should not be assumed.

Confidence: Medium-low. Budget figures are reasonably clear, but the replacement scheme and environmental conditions are not.

Main risks

• Environmental loss: Removing climate-linked payments can weaken soil, water and biodiversity outcomes.
• Weak pass-through: Farm subsidies may not materially reduce supermarket food prices.
• Targeting issue: Without caps, larger landowners may capture a high share of support.

Safeguards

• Cap payments by farm size and need.
• Retain soil, water and flood-resilience conditions.
• Publish food-security metrics and subsidy recipients.

Academic evidence

UK government evidence

Sources

• PolicyLens illustrative scenario methodology: Raise farming budget to GBP 3bn Internal - PolicyLens, 2026
• Measuring the Output Responses to Fiscal Policy Academic article - Auerbach and Gorodnichenko, American Economic Journal: Economic Policy, 2012
• A brief guide to the public finances Fiscal forecast - Office for Budget Responsibility, 2026
• Our Contract with You Party policy document - Reform UK, 2024
• Update on the farming budget UK government blog - Department for Environment, Food and Rural Affairs, 2025
• The Incidence of U.S. Agricultural Subsidies on Farmland Rental Rates Academic article - Kirwan, Journal of Political Economy, 2009
• Our Policies Party policy source - Reform UK, 2026

Other Reform UK policies

• Raise income-tax thresholds
• Cut household energy taxes
• Cut fuel duty by 20p
• Cut stamp duty below GBP 750,000
• Raise inheritance-tax threshold to GBP 2m
• Cut corporation tax to 15%
• Raise VAT threshold to GBP 150,000
• Abolish IR35 rules