This week’s Spring Budget has been criticised after higher energy relief was not extended to agriculture.

The key ask around the budget from the NFUS was on energy costs and the need for industry areas such as horticulture, poultry and pigs to be viewed as critical industries and included in the higher bracket for energy relief.

NFU Scotland President Martin Kennedy said: “We are deeply disappointed that, despite the strongest representation from all parts of the UK, the budget has not been used as a platform to extend the highest level of energy relief available under the Energy and Trade Intensive Energy Scheme to key agricultural sectors after 31 March.

“NFU Scotland has been lobbying for horticulture, poultry and pig production to be included in the ETII Scheme. The four UK farming unions – NFU Scotland, NFU, UFU and NFU Cymru – also wrote jointly to the Department for Energy Security and Net Zero (DESNEZ) highlighting that unless the scheme is amended to provide a higher level of relief, there could be a reduction in domestic food production.

“That risks longer running food price inflation for consumers and could also negatively impact the thousands of supply chain companies that are sustained by the farming sector.

Read more: See Jeremy Hunt's Spring statement

“From April 2023, the ETII scheme will provide high level energy relief to several sectors including food processing and manufacturing. However, it currently excludes primary agricultural production. Failing to address that in the budget is a failure to address growing food security concerns and raises the prospect of more empty shelves appearing in stores.

“Instead, when the Energy Bill Relief Scheme changes at the end of March, many food producing businesses will struggle to absorb the huge hikes in energy prices, leaving them to face an energy cost cliff edge.”

Mr Kennedy said the organisation had raised the matter in person with politicians in recent weeks, including at a meeting with Under Secretary of State for Scotland John Lamont MP on Friday and the NFU will continue to lobby for these industry sectors to be properly recognised under ETII.

The organisation also looked at the additional funding expected to come to Scotland through the Barnett formula.

Director of Policy Jonnie Hall said: “With food and drink the biggest manufacturing sector in Scotland, there is a good case to be made that additional monies coming to Scotland via Barnett consequentials are earmarked for capital spend within the agricultural and agri-food sectors and help deliver the Good Food Nation Act or greener targets related to lower emissions and water quality.

“Potential recipients could be an injection of funds into processing capacity, such as local abattoirs or with specific targeted areas such as assisting farmers to comply with new rules around slurry storage.”