According to Defra sources, the remaining funds will target smaller farms and areas with the greatest potential for nature. These budget cuts coincide with a period when almost all of the government’s statutory environment targets are at risk. A rapid review of the Environmental Improvement Plan indicated that most targets are not being met. The rapid review, commissioned by Defra Secretary Steve Reed, made several recommendations to enhance the government's long-term strategy for protecting and restoring the natural environment. These include a shift to nature-friendly farming, regulatory reform of the farming sector and a new clean air strategy. A revised Environmental Improvement Plan is expected in July, following the Spending Review.

FOOD & FARMING

Budget for nature-friendly farming to be cut
Sources at Defra have confirmed the nature-friendly farming fund will be cut in the Spending Review on 11 June. Defra is understood to be focusing the remaining funds on areas with the best potential for nature, such as uplands and paying farmers not to cultivate on peat soil. The scheme seems likely to target small farms. Ministers will contend that farming profitability will increase during this period due to other government initiatives like the Farm Profitability Review and the new nature restoration fund, which will attract private investment.

Defra has announced a £30 million funding boost for the Higher Level Stewardship (HLS) scheme, increasing payment rates across 157 options. HLS agreement holders will be notified directly about these changes and payments will be made automatically from December 2025. Updated payment rate details can be found here.

Farming Equipment and Technology Fund now open 
The Farming Equipment and Technology Fund 2025 is accepting applications. The fund provides grants for various items within three funding themes: productivity, slurry management, and animal health and welfare. Applicants can request between £1,000 and £25,000 per theme. This grant scheme is competitive - all applications will be evaluated and scored based on criteria specific to each theme after the application window closes. Therefore, not all applications will be approved, nor will all approved applications receive the full amount requested. The application window closes at midday on 10 July 2025.

Scotland: funding for the next generation of farmers
The Land Based Pre-apprenticeship Programme will make £1.8 million available for young people entering farming over three years. Agriculture Minister Jim Fairlie said, “The programme has been expanded to take on close to 400 people and to date we have had more than 60 applications for the training fund”. The Next Generation Practical Training Fund will also be relaunched, with at least £300,000 a year to help young people access skills training. The fund is open from now until March 2027. 

More than £6 million has been paid to over 1,000 hill farming businesses through the Scottish Upland Sheep Support Scheme (SUSSS). The Scottish government stated that over 95% of eligible applications had been paid by the end of May. SUSSS provides financial aid to sheep producers who rely on poorer quality grazing land, supplementing the Basic Payment Scheme.

New Chair of AHDB appointed
Emily Norton has been appointed as the new Chair of the Agriculture and Horticulture Development Board. Ms Norton will assume the role for a three-year term commencing on 1 June 2025, succeeding Nicholas Saphir, who is retiring as Chair after more than five years in the role. Ms Norton is a partner in a 80-hectare arable farm in Norfolk and the founder of Farm Foresight Ltd, a strategic advisory service for the rural sector. Her previous roles include Head of Rural Research at Savills UK and Chair of the Oxford Farming Conference. She holds positions at the Soil Association Exchange, the Environmental Markets Board and the Duchy of Lancaster.

POLICY

SFI closure due to “strangely designed budgets”, says Steve Reed
Secretary of State for Defra, Steve Reed, recently appeared before the Environment, Food and Rural Affairs Committee to provide evidence on the operations of Defra and its associated arms-length bodies. During the session, Reed faced extensive questioning regarding the recent closure of the Sustainable Farming Incentive (SFI) scheme. Reed attributed the scheme’s closure to what he described as poor financial planning by the previous government, criticising the Defra budget as “strangely designed” and “not prioritised in any way”. He confirmed his department is undertaking a comprehensive reform of its budget to address these issues.

The session also offered insights into the future direction of the SFI. Reed acknowledged concerns the scheme had disproportionately benefited larger farms, stating his intention to ensure future iterations are “much fairer” and better targeted toward those most in need, particularly small and family-run farms. He emphasised the revised scheme would aim to correct past imbalances and ensure equitable access across the farming sector. He also said he expected the new iteration of SFI to be launched in early 2026.

Dartmoor wild camping is legal, rules the Supreme Court
The UK Supreme Court has declared wild camping in Dartmoor to be legal, following a lengthy case in which a landowner was informed by the court their ban was invalid. Dartmoor is the only location in England and Wales where the public has a “right” to wild camp, thanks to the Dartmoor Commons Act 1985, which provides access for “open-air recreation” across the Dartmoor Commons, though it does not explicitly allow for overnight wild camping. The court decided wild camping falls within the activities permitted under the Act.

Landowners initiated the case out of concerns wild campers could harm their conservation efforts and endanger their livestock, claiming they sought the case to protect the common. They expressed disappointment over the ruling, stating “hollowing out the role of landowners and farmers will not improve the vitality of the Dartmoor Commons". Access rights groups have welcomed the ruling, which is likely to reignite national discussions about public land access in England. Nature Minister Mary Creagh said she “welcomed” the decision and emphasised the government's commitment to connecting people with nature.

EU commission boosts budget for livestock shutdown scheme
A Dutch government scheme that compensates livestock farmers for voluntarily closing their operations in environmentally sensitive areas has received an additional €78 million in funding, bringing the total budget to €128 million. Launched in August 2024, the scheme offers grants up to 120% of a farm’s market value. The payments cover the loss of production as well as the costs of dismantling equipment and disposing of livestock. Farmers who accept the funding must “irrevocably” close their operations, meaning they cannot return to livestock farming on that site in the future. Participation is limited to farms located within designated nature conservation areas where nitrogen emissions are a significant concern. The scheme met with criticism when first introduced. Despite the backlash, more than 750 farmers have opted in, suggesting that for some, the financial offer outweighed the challenges of continuing under tightening environmental regulations. 

ENVIRONMENT & NATURAL CAPITAL

Environmental targets at risk of failure
All but one of the government’s statutory environment targets are at risk, according to a freedom of information request made by ENDS and The Times. The rapid review of the Environment Improvement Plan (EIP), commissioned by Defra Secretary Steve Reed, assessed the progress of EIP23 using a red-amber-green system. Key targets, such as halting species decline, improving air and water quality and increasing woodland cover, were rated amber/red or red due to funding shortfalls, policy gaps and external pressures like climate change and agricultural practices. Only the target to reduce phosphorus from treated wastewater was rated green. 

The review offers recommendations aimed at enhancing the government's strategy to protect the environment, which may be included in the revised version of EIP due in July following the Spending Review. These include:

• Integrated habitat networks
• A new clean air strategy
• Regulatory reform of the farming sector
• Improved coordination of food response
• A shift to nature-friendly farming

Scotland: new national park plan scrapped
Plans to establish Scotland’s third national park in Galloway and Ayrshire have been cancelled. A public consultation on the proposal was conducted by NatureScot. During an update at the Scottish parliament, rural affairs secretary Mairi Gougeon stated 54% of participants opposed the plans, while 42% supported them. Proponents argued the national park would enhance the region's visibility, stimulate the local economy, and prevent it from becoming a site for unsuitable windfarms. Opponents contended stricter planning permission requirements for development projects could negatively impact economic activity. Additionally, there were concerns about rising house prices and increased tourism. Local responses revealed 57% were against the proposal, compared to 40% in favour.

Ms Gougeon said, "Based on the evidence gathered during the investigation and consultation, the reporter has advised that, whilst it considers that the proposed area meets the conditions for a national park set out in the legislation, the proposal does not have sufficient clarity, nor has it garnered sufficient local support to proceed".

Future threats to British biodiversity
Experts have identified 145 non-native animal and plant species that could become invasive soon, posing risks to biodiversity, ecosystems and, in some cases, human health and the economy. While some species on the “watchlist” have already been detected in Britain, they are not yet established, meaning they have not formed self-sustaining populations. Others have not yet arrived but are considered likely to do so if preventative measures are not taken. On the list are some well-known invasive species, such as the Asian hornet, but it also includes some new entries, such as Pink salmon, Purple Asian clams and a nematode worm linked to widespread tree mortality. 

The updated watchlist highlights beetle species such as the Emerald Ash Borer, Asian Longhorn and Citrus Longhorn, which pose a serious threat to trees through their destructive feeding and tunnelling behaviours. Raccoons remain on the list due to their potential to disrupt native ecosystems, threatening bird populations, damaging fruit crops, displacing native carnivores and carrying diseases such as rabies and a parasitic roundworm that can be fatal to humans.

PROPERTY & DEVELOPMENT

BNG requirements “eased” for small-scale developments
The government has launched two new consultations on Biodiversity Net Gain (BNG), aiming to refine how the policy is applied to minor, medium and brownfield developments, as well as major infrastructure projects. The proposals include easing or exempting BNG requirements for small developments (up to nine homes) and simplifying rules for medium-sized sites (10–49 homes), to reduce burdens on housebuilders. Housing Secretary Angela Rayner said the changes would help accelerate homebuilding by making the planning system “simpler, fairer and more cost-effective”. The consultation also proposes delaying the rollout of BNG for Nationally Significant Infrastructure Projects from November 2025 to May 2026.

The proposals have drawn criticism from environmental groups, who warn that exempting small sites could undermine the entire BNG system. The Wildlife Trusts said the move breaks the government’s promise to put nature at the heart of development. Critics say the changes risk destabilising a system developers have spent years preparing for. Both consultations are open until 24 July 2025, with Defra encouraging feedback from developers, planners and the public.

Mobile masts upgraded in natural parks
More than 50 mobile masts have been upgraded to provide comprehensive coverage from all mobile network operators. These masts were initially exclusive to EE customers and emergency services. Collectively, these masts cover an area equivalent to 66,470 football pitches, with over half of them extending coverage to new areas of outstanding natural beauty or national parks. Upgrading existing masts will also minimise the visual and natural impact on the environment. Beneficiaries include the North York Moors National Park, segments of the Southern Upland Way and the Shropshire Hills. This initiative is part of the Shared Rural Network programme, led by the government and mobile network operators to enhance connectivity in rural areas.

BUSINESS & economy

Thames Water fined £104 million over wastewater
Thames Water has been issued the largest fine for breach of wastewater operations in Ofwat's history: £104.5 million. The fine followed a lengthy investigation from Ofwat, which was focused on wastewater operations, management and maintenance of sewage networks, and found Thames Water’s management of its treatment works and wider wastewater network had caused a significant breach of the company's legal obligations, causing a “unacceptable” effect on the environment and customers. Alongside the fine, Thames Water has been served an enforcement order which requires the company to take steps to ensure compliance in the future.

An additional charge of £18.2 million has been handed to Thames Water for making dividend payments to shareholders in an “undeserved manner”. Ofwat said water companies should only make dividend payments when they are linked to performance and the environment. Thames Water will now be placed in a “cash lock up” and will only be able to make dividend payments when authorised by Ofwat.

These fines are the first to be made via the Water (Special Measures) Act 2025, which was enacted earlier this year. The Act introduced automatic penalties for water industry offences, including those related to pollution, information requests and water resources. These automatic fines will be imposed in addition to other measures like restricting bonus payments to executives and requiring real-time monitoring of sewage discharge.

Largest bioethanol producer to scale back buying
The UK’s largest bioethanol plant has told wheat farmers it will close unless there is government intervention. The recent UK-US trade deal included the removal of a 19% tariff on US ethanol imports. Vivergo Fuels, which operates the plant, said the deal has made it impossible to compete with heavily subsidised American products. It said the government had pledged to act within “days, not weeks” but it had seen no movement. It added if there is no urgent action, the plant will no longer be viable and its wheat purchases will end. The Hull plant can produce up to 420 million litres of bioethanol and employs 160 people directly. Since Vivergo’s announcement, the British Chambers of Commerce has urged the government to act to protect Britain’s domestic bioethanol industry. 

Rural businesses are closing faster than they are being replaced
Fewer than half of closed farms and rural businesses are being replaced, according to research from Cynergy Bank. Research data indicates that 805 new farm businesses were established in the first quarter of 2025, while 1,890 ceased operations during the same period. This results in a Business Health Score of 0.43, which is considerably lower than the score of 1.43 seen in property businesses. The research also highlights a significant decline in the number of staff employed per new business, with an average of 2.64 employees per new business, compared to 3.5 in 2017. Furthermore, the analysis indicated that the average turnover of companies that ceased operations was £329,000, marking the highest level observed in at least eight years. The aggregate turnover of businesses that closed in the past 12 months amounted to £92.7 billion, which surpasses the £90.4 billion contribution from start-ups during the same period. 

OTHER RURAL NEWS

And finally… Is that seagull going to steal your chips?
If considering the question “Is that seagull going to steal my chips?”, the immediate response is typically “Yes”. Yet recent research by Ghent University indicates your food may be safer if confronted by a solitary seagull. Scientists conducted experiments with a group of 54 seagulls. They placed various items, some familiar and some new, near the gulls’ food. The researchers discovered lone gulls took an average of 9.81 seconds to approach their food bowl when faced with an unfamiliar object, compared to just 3.52 seconds when in a group. Additionally, it found the birds were more willing to spend time near their food when in a group, averaging 111.8 seconds, as opposed to 38.8 seconds for lone gulls. These findings add to a body of work on anti-seagull strategies and chip-protection measures. Previous studies have suggested gulls prefer food that has been handled by humans and maintaining eye contact with a seagull may help deter it from taking your food.

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