In the run-up to the general election, the party acknowledged the rural sector had endured its fair share of change and required a steadying of the ship. Meanwhile, members of the Labour party repeatedly referred to their ambition to grow the economy, specifically a ‘kick-start for rural growth’ with a recognition that rural communities have been in decline.

So, a week on from the election, what can we expect to hear from the new government about a new deal for farmers? Steve Reed has been appointed Secretary of State for Environment, Food and Rural Affairs and has released his top five priorities:

1. Clean up our rivers, lakes and seas
2. Zero waste economy
3. Boost food security
4. Nature recovery
5. Protecting communities from flooding

Environmental priorities, commitments and pledges came to the fore in the Labour manifesto and although there was mention of food and food production, it was light.

The environment

Mr Reed recently stated that ‘Labour will invest in the natural world’. Much was mentioned in the manifesto about protection and restoration of the environment with a commitment to deliver the Environment Act targets through the Environmental Improvement Plan. The manifesto made a pledge to make the Environmental Land Management Scheme and Biodiversity Net Gain work and further statements in recent months have made reference to Natural Flood Management Schemes with the proposed introduction of a Cobra-style cross-government group. In addition, we could see new green policies specifically on National Parks and Landscapes. Tree planting continues to be high up the agenda and Labour appears alive to the fact that a Land Use Framework is essential, stating that ‘without it, it is difficult to take granular decisions and the need is to get the balance right on the demands of land’. 

Food

While the headline of food security is national security made it into the manifesto, we await the detail of what this actually means. One commitment was a focus on food procurement for the public sector with 50% of all food purchased across the public sector to be locally produced or certified to higher environmental standards. Labour has said they will look to slash red tape at the borders with the aim to increase the flow of exports. 

Two areas in which we are likely to see significant change for the rural sector are energy and planning.

Energy

Labour plans to establish GB Energy with the premise of lowering energy bills for the rural sector. Their aim is to create a clean energy revolution with the British Infrastructure Council looking to unlock private investment for national infrastructure projects. Labour would enact their Warm Homes Plan and invest an extra £6.6bn over the next parliament to upgrade 5 million homes. 

Planning

Labour has been explicit in its manifesto to reform planning for homes and infrastructure; to speed up brownfield site development and unlock land in the grey belt. Labour cites a housing crisis but states houses will not be built at the expense of the environment. Additionally, Labour is looking to speed up planning decisions in other areas such as renewable energy.

What next?

A big unknown is the budget. The agricultural budget was £3.7bn for the UK and £2.4bn for England; Labour has said it will make decisions on the future of the budget based on the first spending review later this year. So how will Labour fund their commitments to the UK? Two areas mentioned are:

1. Revenue from closing further non-domiciled (non-dom) tax loopholes and investment in reducing tax avoidance. 
2. Revenue from applying VAT and business rates to private schools.

Labour intends to transfer the power from Westminster to rural communities and do away with in the words of Mr Reed ‘dictatorship’. Farmers, landowners and investors need certainty for confidence particularly as they continue to work through the agricultural transition and I would suggest the government will do well to provide clear leadership at this time and generate the confidence needed.

Further information

Contact Kelly Hewson-Fisher

A new Labour Government: what next for residential development?