Post election update: Agricultural and Environmental policy under the new government 

It's almost the middle of August, the General Election is over, and the UK has a new government. After fourteen years with the Conservatives in power we now have a Labour government with Sir Keir Starmer as Prime Minister.

A change in government, particularly after a significant period under Conservative leadership, will mean changes in a range of policies. This update summarises what landowners and land managers and those involved in the natural capital sector can expect from Labour's approach to the environment and agriculture sector.   

What's next?

The new government has already taken some actions which will impact the environmental and agricultural sectors.

Ed Miliband's appointment as Secretary for Energy Security and Net Zero

Appointing Ed Miliband as Secretary for Energy Security and Net Zero. Mr Miliband has set out that his priorities for the department are:

1. Delivering in the Government's mission to boost energy independence and cutting bills through clean power by 2030.

2. Taking back control of energy with Great British Energy.

3. Upgrading Britain’s homes and cutting fuel poverty through the Warm Homes Plan.

4. Standing up for consumers by reforming the energy system.

5. Creating good jobs in Britain’s industrial heartlands, including a just transition for the industries based in the North Sea leading on international climate action, based on domestic achievements. Further policy announcements are expected in the coming weeks.

Lifting the de-facto ban on onshore wind development in England

Lifting the de-facto ban on onshore wind development in England which has been in place since 2015. This is intended to place onshore wind on the same footing as other energy developments under the National Planning Policy Framework. The move is expected to open up opportunities to landowners and others operating in the renewable energy sector.

Steve Reed appointed as DEFRA Secretary and Daniel Zeichner as Farming Minister

Appointing Steve Reed as new DEFRA Secretary and Daniel Zeichner as Farming Minister. On 8 July 2024, Mr Reed unveiled five core priorities for his department:

1. To clean up rivers, lakes and seas.

2. Create a roadmap to move Britain to a zero-waste economy.

3. To boost food security.

4. To ensure nature's recovery.

5. To protect communities from the dangers of flooding. Mr Reed met with NFU president Tom Bradshaw on 8 July 2024 to discuss, "key and immediate actions that are needed to enable the British food and farming sector to thrive." While it is still early days, and Mr Zeichner's exact brief is not yet confirmed, it is clear there will be significant announcements to come. Mr Zeichner has to date confirmed the government is, "…going to make the ongoing transition to the environmental land management schemes" and that, "stability in the sector" is a goal of the government.

Pledging to reset the UK's bilateral and EU relationships

Pledging to "reset both [the UK's] bilateral relationship and relationship with the European Union" including removing certain barriers to trade. This pledge appears to be a focus of the DEFRA Secretary who recently reiterated the government's intention to renegotiate a deal with the EU to "get British exports moving across the border again." It is possible that a more constructive relationship with Europe may lead to increased trade opportunities in time. The government has said it will not seek to re-join the EU.  

Key legislative proposals from the King's Speech

In the King's Speech on 17 July 2024, several relevant bills were announced which will make changes to these sectors. The government's announcements included plans to:

• Reform the Crown Estate, which owns most of the seabed around the UK by widening its investment powers. The Government expects this will provide vital marine investment needed to accelerate and quadruple offshore wind capacity by 2030. 

• Introduce a National Wealth Fund (NWF) capitalised with an additional £7.3 billion, intended to be central to the Government's mission to deliver growth and a greener economy. The NWF is intended to invest directly in priority sectors and to work with local partners to provide investment supporting local areas. 

• Reform the planning system by speeding up and streamlining the planning process. Key reforms the Government intends to put into place include: (1) streamlining the delivery process for critical infrastructure, (2) reforming compulsory purchase compensation rules, and (3) using development to fund nature recovery. Commentators expect some of these reforms to be controversial as they would allow some development to take place on what may previously have been green belt land.

• Introduce a Great British Energy Bill to set up a new, publicly-owned energy production company who will own, manage and operate clean power projects across the UK. The new company is intended to help the UK achieve its transition to clean energy.

• Strengthen regulation on water companies to help protect the environment and clean up rivers, lakes and seas. Changes the Government intends to make include (1) making those in charge of water companies criminally liable for breaking the law, and (2) creating financial penalties which incentivise water companies to comply which include giving regulators the power to ban the payment of bonuses if environmental standards are not met.  

Only time will tell as to what these reforms will look like when they become law.

It is clear that further changes to agricultural and environmental policy are on the horizon. Though the prospect of change can be unsettling, it also has the potential to provide many new opportunities to those involved in the sectors.

How can Foot Anstey help?

Foot Anstey is a panel firm for the National Farmers Union and can provide farmers and other rural landowners with advice in relation to all natural capital schemes and matters concerning farming or rural land.

We have large teams of specialist lawyers in real estate, clean energy and infrastructure, planning, tax and succession who can provide a wealth of experience and legal expertise.

Check out our Experts in the Field podcast, where we focus on insights and practical advice on important issues for agriculture and rural business or visit our Farms, Estates & Rural Land web page for more information about how we can assist.