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What does a Labour government mean for agriculture?

With Keir Starmer taking office as UK Prime Minister, a Labour victory is likely to signal the start of a period of significant change for farmers.

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After 14 years in power, the Conservatives have suffered their worst electoral defeat in their history, losing 250 seats in parliament so far.

Labour has won more than 200 seats in Parliament, now having a total of 412, while the Conservatives have 121 and the Liberal Democrats 71.

Several agriculture-related MPs lost their seats in the election, including former Agriculture Minister Mark Spencer and Environment Minister Rebecca Pow.

Former Defra ministers including Therese Coffey, Victoria Prentis, Ranil Jayawardena, Liz Truss and Theresa Villiers have lost their seats.

However, former environment minister Steve Barclay remained in his seat in north-east Cambridgeshire.

Rishi Sunak has said he will step down as leader of the Conservative Party as soon as a new leader is found.

So what did Labour say on food and farming?

Labour said in its manifesto it would set a target for half of food bought in the public sector to be locally produced or certified to higher environmental standards.

The party also pledged to introduce a legal framework for land use and “create environmentally friendly land management programs that benefit farmers and nature.”

On trade, the party said it would publish a strategy promoting the highest standards in food production.

However, the manifesto described badger culling as “ineffective”, and representatives of the organisation promised to work with farmers and scientists to eliminate bovine tuberculosis and end culling.

The party also wants to improve responsible access to nature by creating nine new national river routes, three new state forests and expanding wetlands, peatlands and forests.

In addition, there are plans to modernise the national transmission infrastructure to improve network connections.

There have also been rumours that the party intends to introduce an inheritance tax on farms, although the party has not confirmed this information.

READ MORE: General Election: What is each party promising farmers?

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Unexpected

While polls in rural areas suggested disillusionment with the Conservatives – largely due to the fallout from Brexit – Labour was criticised for its 87-word manifesto on farming.

Commenting on the Labour victory, Bruce Masson, partner in agriculture and rural business at Larking Gowen, said:

“Labour’s victory in the general election was no surprise, but with so little pre-election promises and messaging from all parties, we will have to see what changes and policies the coming months bring.”

Two key issues were missing from the Labour manifesto: capital gains tax (which was at historic lows) and inheritance tax, which should have been reformed long ago.

“However, the likelihood of both increasing under the next government is high, which will worry many,” Mr Masson said.

“Historically, farming has done well under Labour governments and we would like to see that historic trend continue,” he added.

“This will require a clear and bold vision for the rural economy that can effectively encompass both food production and environmental issues, that is not short-termist in its approach, that can be supported by all parties in the future and truly support British farms.”

Reset moment for agriculture

Meanwhile, NFU president Tom Bradshaw said it was a “reset moment” for British farming.

While the Labour manifesto emphasises that food security is synonymous with national security, business confidence is key.

He stressed that British farmers and the public need “practical policies that will revive confidence in agricultural businesses and deliver on our shared mission of ensuring food security”.

Mr Bradshaw said the Labour government’s top priority must be to set a stronger multi-year agriculture budget for the duration of the next parliament.

Key points in the Labour manifesto that need action include ensuring that ELM schemes apply to all farmers, setting baseline standards for food imports and legislation to increase public procurement.

Other issues that deserve greater recognition include a tailored seasonal worker program, effective import controls, supply chain integrity, infrastructure investment and flexibility in planning.

Mr Bradshaw also noted that the latest scientific research indicates a 56 per cent decline in tuberculosis cases, meaning that further effective eradication of the disease is necessary.

A cautious welcome

The National Sheep Breeders Association has cautiously welcomed the new government.

Labour Party leader Phil Stocker said the Labour manifesto lacked detail and depth and that current agriculture budgets were inadequate.

He added: “We want to start this stability with continuity with the shadow team that has been working with industry to date. There will be no change in personnel for these positions.”

NSA priorities include increasing the agriculture budget nationwide and recognizing food production as a public good.

In addition, it wants to appreciate the value of grazing cattle as a multifunctional agricultural and land management activity.

In addition, clear support for new entrants and a commitment to review policies on carbon offsetting, biodiversity clean gain and nutrient neutrality.

“Government of service”

Taking responsibility for the Tory defeat, Rishi Sunak said last night (4 July): “The British people have delivered an appalling verdict tonight, there are lessons to be learned… and I take responsibility for that defeat,” BBC News reported.

Mr Sunak said power would change hands “peacefully and orderly, with goodwill on all sides. That is something that should give us all confidence in the stability and future of our country”.

In his first speech as prime minister, Sir Starmer promised to build a “government of service”, restore trust in politics and “sail into calmer waters”.

Article sponsored by Larking Gowen.

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