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Exploring the EFRA Committee’s “Future of Farming” Inquiry and Its Relevance to the Landscaping and Environmental Horticulture Sector

10 Dec 2024 | BALI News

The Environment, Food and Rural Affairs (EFRA) Committee has launched an inquiry into the “Future of Farming,” marking a pivotal opportunity to influence one of the sector’s most significant periods of change in recent years. This inquiry will examine critical issues, including technological innovation, sustainability, labour challenges, and regulatory pressures affecting the farming and wider rural economy. While the primary focus is on agricultural production, it also presents a chance for related sectors — like landscaping and environmental horticulture — to highlight their role in shaping the future rural economy.

Scope of the EFRA Inquiry

The EFRA Committee’s inquiry seeks to identify how farming can become more sustainable, economically viable, and resilient to external pressures such as climate change and global supply chain disruptions. It will also explore the skills, and workforce needs of the farming sector, an area where there are clear parallels with the challenges faced by the landscaping and environmental horticulture industries.

Both sectors are grappling with labour shortages, skills development, and the recruitment of a new generation of workers. With a shared reliance on green skills and technical expertise, the landscaping industry has an opportunity to highlight how its workforce aligns with the Government’s broader agenda for green jobs and environmental improvement. This alignment strengthens the case for greater recognition of landscaping and environmental horticulture as integral components of the rural economy.

The inquiry will also review the potential impact of changes to regulations, including those under the Animal and Plant Health Agency’s (APHA) approval processes and the Biocidal Products Regulation (BPR). While these regulations are specific to farming, changes could have indirect consequences for landscaping businesses — especially those that rely on certain chemicals, pesticides, or growing materials affected by APHA approvals.

Why This Matters for the Landscaping and Environmental Horticulture Sector

While farming is the focal point of this inquiry, the broader remit of the rural economy presents an opportunity for the landscaping and environmental horticulture sector to have its voice heard. Issues like biodiversity net gain (BNG) obligations, sustainable planting schemes, and the environmental management of land developments all intersect with the remit of the inquiry.

Landscaping businesses play a vital role in supporting national sustainability targets, including rewilding, tree planting, and flood mitigation. As the UK Government continues to prioritise biodiversity, nature restoration, and green skills, it is essential that landscaping’s role in these agendas is recognised. This is particularly important as local authorities, developers, and the construction sector increase their reliance on skilled landscape professionals to meet biodiversity net gain obligations.

By engaging with the inquiry, the landscaping sector can demonstrate its shared interests with farming, particularly regarding skills and workforce development, while also highlighting its contribution to key policy areas. This presents an opportunity to push for greater recognition of the landscaping and horticulture sector within parliamentary discussions on the rural economy.

The Impact of Changes to Business Property Relief (BPR)

A critical development that overlaps with the EFRA Committee’s inquiry is the UK Government’s 2024 Autumn Budget, which announced significant changes to Business Property Relief (BPR). Historically, BPR has allowed businesses to reduce inheritance tax on certain assets, supporting succession planning for family-run enterprises. However, changes proposed in the Autumn Budget could alter which assets qualify for relief, potentially increasing the tax liabilities faced by landscape business owners.

This issue is particularly relevant to landscaping firms that own commercial property, machinery, and operational assets, as these may be affected by the redefined eligibility criteria for BPR. The changes could have long-term implications for succession planning, asset transfers, and the overall financial resilience of landscape businesses.

The EFRA Committee’s inquiry is an opportunity to raise awareness of the broader impact of these changes on businesses operating within the rural economy. While farming is likely to receive the most attention, it is vital to ensure the implications for other rural enterprises — including landscaping and environmental horticulture — are also recognised.

To help members prepare for these changes, the Association strongly recommends that members consult with financial professionals to understand how the adjustments to BPR may impact their businesses. Seeking professional advice will be essential for members seeking to manage potential impacts on asset valuation, succession planning, and inheritance tax liabilities. 

Call For Member Feedback 

The Association is actively gathering member feedback on the changes to BPR and the wider 2024 Autumn Budget. Member perspectives will play a crucial role in shaping the Association’s response and will help to determine whether there is sufficient evidence to request that the EFRA Committee launch a dedicated inquiry into the future of the environmental horticulture sector.

We encourage all members to contribute their views by participating in the Association’s live survey on the 2024 Autumn Budget. This survey seeks feedback on the broader implications of the Budget, offering an opportunity for members to raise concerns about BPR, taxation, and other areas of potential impact on their business. Member feedback will help shape future engagement with policymakers and ensure the landscaping sector’s views are represented in discussions about the future of the rural economy.

The survey can be found here

By participating in the survey and sharing perspectives, members will help the Association assess whether there is sufficient cause to call for a dedicated inquiry into the future of the environmental horticulture sector. With strong evidence and collective support, the Association will be well-placed to push for greater recognition of landscaping’s role in the rural economy and its contribution to the Government’s environmental and green skills agenda.

 

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