CBI CEO urges government to back farming industry

Citing the government's welcome ambitions to "set our economy on a higher course", CBI CEO Rain Newton-Smith will use her speech to the NFU Annual Conference in London (Tuesday 25) to highlight the importance of farming as "A fundamental of our economy and our lives" and to caution that without backing this foundational sector "Any growth plan will tumble. Any Industrial Strategy will fall flat at the first hurdle."

Opening the afternoon session of the conference at the QEII Centre in Westminster, Newton-Smith will acknowledge farmers have "been battling so many challenges from the weather and climate change, from rising costs of fertilisers and from skills shortages. And of course, more recently, changes to Inheritance Tax and Business Property Relief at the Budget....which the NFU has said could affect 75 per cent of farms." She will set out why supporting farming underpins the wider economy and will go on to outline how the sector can help the government to deliver the forthcoming Industrial Strategy, the Chancellor's growth plan, the transition to net zero and drive economic growth right across the UK.

She will additionally identify four key areas to help the future of farming and every sector of the everyday economy: people, productivity, planning and trade.

Amid a difficult geopolitical landscape, Newton-Smith will acknowledge the challenges facing the industry and the government:

"As the headlines bring more uncertainty abroad, more talk of rising tensions and tariffs, it only mounts the pressure to fire up our own economy. We are now in a fast and furious global race. Where the only way to compete is to relentlessly view every decision - through the lens of growth and investment.

"For good jobs, for better public services, for living standards, growth is the right course. Growth is the only course.

"What we need is a modern industrial strategy that looks clearly at the world - the emerging markets, the emerging tech... And we think this government gets that. In their industrial strategy paper, they talk about eight high-growth sectors they can supercharge. They're the glitzy sectors - the new tech ones: clean energy, advanced manufacturing, life sciences and more."

Newton-Smith will go onto highlight the importance of farming to the Industrial Strategy:

"What we are also saying and what Government must not forget - is targeting those alone won't work if you don't keep your eye on the fundamentals. The sectors that prop up everything else. For life sciences, you can't do it without chemicals. For advanced manufacturing, you can't do it without logistics, or the minerals sector.

"And well farming - nothing is more foundational... You are the link and the basis - for so many other sectors. Any growth plan will tumble. Any industrial strategy will fall flat at the first hurdle... if we don't first back our foundational sectors."

On the part the sector will play in the government's growth plan, Newton-Smith will say:

"In an ever more unsettling and unsettled world, growth and resilience are two sides of the same coin. You can't have one without the other. But as the government targets resilience - how can you do that without at least some self-reliance?... 58 per cent of food consumed in the UK is from UK farmers... To ensure a resilient economy, we need a strong farming community."

On the part farming plays in transition to net zero, Newton-Smith will say:

"Farmers are the guardians of our land. Over 70 per cent of the UK is agricultural land. And from cutting emissions to planting bioenergy crops, to planting 14,000 more hectares of trees by 2050, to other nature restoration… we simply cannot reach our net zero ambition without farmers on board."

On driving economic growth right across the UK, Newton-Smith will say:

"Farming is the backbone of the £148bn food and drink industry... In every region and part of the country, farms are essential for dozens of other industries from supermarkets to machinery suppliers to vets."

On the impact of the Autumn Budget on the sector, Newton-Smith will say:

"Farming is a vital part of the everyday economy - the true job creators and community builders that prop up our whole economy. You can't get growth unless you start by backing sectors like this. As any economist will tell you, that starts from investment. But to get that flowing, what you need is confidence.

"I know that's a word not heard much in farming today. You've been battling so many challenges… most recently, changes to Inheritance Tax and Business Property Relief at the Budget which the NFU has said could affect 75 per cent of farms. Some see those solely as personal taxes, but farming is an industry where the professional is deeply personal. And I know so many of you are fearful of the impact - fearful you can't pass livelihoods on to future generations."

Newton-Smith will then outline "four places government can move fast, to make doing business, to make investing in business easier."

1. People
   
   "Our labour market used to be a badge of pride and strength for the UK economy. But persistent shortages - in people and skills - changed all that. We know how tough this has been for business of all kinds. Labour's efforts to bring down economic inactivity and get more people back into work are important. And there have been some welcome changes to make apprenticeships more flexible. But companies struggling with rising employment costs need a pressure valve sooner rather than later. We need the Spending Review to deliver on the promise of the Growth and Skills Levy. We need funding for firms to invest in the skills they require right now. And we need government to work with business to fix the Employment Rights Bill, and make sure aspects like the right to guarantee hours - don't put a brake on hiring."
   
   
2. Productivity
   
   "We are a nation of inventors and innovators. We are world-renowned for our universities, our science, our research. To get our business ahead, we must translate that to tech adoption, automation and innovation across our economy. From AI in crop monitoring, to robotics in planting - farming is already making great strides.
   
   "But we need government to back you to go further. We want a boost to investment in innovation and a real, national tech adoption plan."
   
   
3. Planning
   
   "Labour's gone a long way - blowing the dust-off plans sitting on government's desk for too long. Now we need to turn words into action. So, you see the benefit - faster approval for making your farms more water and energy efficient, for investing in renewable energy and better buildings."
   
   
4. Trade
   
   "We need a trade strategy to work hand in hand with our industrial strategy. And backing to get goods from your businesses - out to new markets."