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Updates and Changes in UK Environmental Schemes for 2024
Key updates to the UK's environmental schemes in 2024 include increased payment rates, new actions in SFI and CS, and streamlined application processes to enhance sustainable land management.
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A summary of the UK’s 2024 budget cuts and tax changes, and how it will affect landowners.Plus some very practical strategies for how to deal with them.
The 2024 Autumn Budget is introducing a lot of changes that will impact landowners financially, especially if they’ve invested heavily in nature recovery projects, sustainable farming, and woodland creation. There’s a whole range of tax cuts, but there are also changes to funding, as well as to resource allocation. This means the new budget will verylikely result in rural landowners making some changes. Change is usually intended to improve conditions, but change can also indicate that the previous system worked fine, which of course is why the government would change it. Some of these new policies do aim to provide relief, while others will present new hurdles and challenges, especially for people engaged in long-term environmental projects.
This is a no-nonsense summary of the key changes, and what they’ll mean for landowners and environmental funding in England.
Perhaps the most controversial change in the 2024 budget is the reduction in inheritance tax relief on agricultural land, which had previously been capped at £1 million. Essentially what this means is that when property was passed down to heirs, tax only had to be paid on any value over a million pounds. This threshold has been reduced, meaning there is a lower tax-free limit. In turn, this will result in higher tax burdens, and in more serious cases families could feel pressured to sell portions of their inherited estate to cover these costs. There are many landowners and farming advocates who view this change as discouraging, and potentially threatening, for small family farms wishing to keep land within their families for future generations.
Much of the funding for nature recovery, farm support, and environmental projects is overseen by Defra—the Department for Environment, Food & Rural Affairs. While there have been some reports of budget increases, the truth is it’s just not that simple. Here’s what’s going on in a nutshell:
Ongoing discussions about the need for more woodlands have been ignored in the new budget, as it contains no new funding for woodland creation projects. While the Nature for Climate Fund will continue providing support for tree-planting and peatland restoration, it is currently unclear how much of its funding will be earmarked for actual woodland creation. If there’s no increase in investment, then England’s annual tree-planting targets will continue
to lag behind those of Scotland, which has more robust tree-planting efforts.
Landowners with employees will most certainly feel the impact of the mandatory 1.2% increase in employer contributions for the National Insurance starting in April 2025. This increase will tighten the pressure on payroll expenses for those with labour-intensive environmental or farming projects. The timing of this increase has apparently been well chosen to coincide with a time when costs are already rising. Even smaller operations with fewer staff could still face added pressure, especially if they rely on their hired help for maintenance, planting, or conservation work.
While environmental funding will not enjoy the increases it deserves, carbon credits will still offer landowners a way to earn income. Landowners creating new woodlands or restoring peatlands can benefit from the Woodland Carbon Code and Peatland Code. They will be able to profit by generating verified carbon credits, and then selling them to companies or people seeking to offset their carbon emissions. Yet while using carbon credits hand in hand with support from existing programmes—such as the England Woodland Creation Offer EWCO) or Countryside Stewardship (CS)—should in theory maximise returns, without new funding in the budget, the practical benefits will likely be limited.
Even though the 2024 budget did not provide new funding for Biodiversity Net Gain (BNG) initiatives, it is still a primary objective within the UK’s environmental policies. BNG requirements call for a minimum 10% improvement in biodiversity in England, which in turn should allow landowners to create and sell BNG units to developers that otherwise couldn’t meet these requirements. While no new required funding has been provided, the aforementioned £400 million for tree-planting, peatland restoration, and the Nature Restoration Fund might be able to support these BNG goals, albeit indirectly. This would especially be feasible for landowners wishing to pair their carbon credits with biodiversity enhancements.
A landowner involved with a BNG project can take advantage of this sort of loophole funding, by combining their environmental improvements with carbon sequestration. Of course complexities arising from tax and compliance obligations are to be expected with anything dealing with any government, but BNG could represent a win-win situation. It could result in increased income, paired with good environmental stewardship. This would fit well with carbon credit projects such as the Woodland Carbon Code.
Funding for Countryside Stewardship (CS) and Environmental Land Management (ELM) remains, but the application processes have been tightened, and there is greater focus on efficiency. On the other hand, payments for various activities have increased slightly, such as creating field margins, and managing hedgerows. The 2024 budget somehow also managed to simplify application processes for ELM, which encouraged more participation especially in biodiversity and climate resilience projects. Yet these adjustments are shorter- term, as they focus on immediate returns at the expense of longer-term financial increases. The effect would be rather contradictory to the stated goals, as larger nature recovery targets could potentially be left to dry without any additional funding.
The budget has new funding for specific rewilding initiatives and nature recovery projects. Grants will be awarded for creating new wildlife corridors, pollinator habitats, and improving biodiversity in farmland. However, as mentioned at the top of this article, much of this funding comes at the expense of other existing budgets, and adds no funding that is actually new. This demonstrates the government’s focus on maximising efficiency with current resources, but this kind of minimalist funding also raises questions about whether the UK will be able to meet its environmental targets for 2030 and beyond.
Threats to trees such as ash dieback and the oak processionary moth are as persistent as oaks themselves, continuing to pose challenges. The budget continues to include support for Tree Health Pilot programmes, which provide grants for monitoring and replacing affecte trees, and for biosecurity training. For woodland managers, this has its immediate benefits, but without increased funding, any broader impact would be limited.
For landowners and those involved with nature recovery projects, the 2024 Autumn Budget provides new opportunities as well as challenges. Adjustments to the inheritance tax could place unwanted pressure on long-term family planning, but this could be offset by carbon credits and Countryside Stewardship. That is, if anyone is brave enough to deal with the bureaucracy. This budget when compared to previous years clearly demonstrates a more conservative approach: very few funding increases, and redistribution of existing resources. Landowners with an interest in environmental sustainability will need to take an interest in financial sustainability as well because of these changes. With the right tweeks, the currently available funding, and properly diversified income streams, could in fact keep your projects on track.
A summary of the UK’s 2024 budget cuts and tax changes, and how it will affect landowners.Plus some very practical strategies for how to deal with them.
The 2024 Autumn Budget is introducing a lot of changes that will impact landowners financially, especially if they’ve invested heavily in nature recovery projects, sustainable farming, and woodland creation. There’s a whole range of tax cuts, but there are also changes to funding, as well as to resource allocation. This means the new budget will verylikely result in rural landowners making some changes. Change is usually intended to improve conditions, but change can also indicate that the previous system worked fine, which of course is why the government would change it. Some of these new policies do aim to provide relief, while others will present new hurdles and challenges, especially for people engaged in long-term environmental projects.
This is a no-nonsense summary of the key changes, and what they’ll mean for landowners and environmental funding in England.
Perhaps the most controversial change in the 2024 budget is the reduction in inheritance tax relief on agricultural land, which had previously been capped at £1 million. Essentially what this means is that when property was passed down to heirs, tax only had to be paid on any value over a million pounds. This threshold has been reduced, meaning there is a lower tax-free limit. In turn, this will result in higher tax burdens, and in more serious cases families could feel pressured to sell portions of their inherited estate to cover these costs. There are many landowners and farming advocates who view this change as discouraging, and potentially threatening, for small family farms wishing to keep land within their families for future generations.
Much of the funding for nature recovery, farm support, and environmental projects is overseen by Defra—the Department for Environment, Food & Rural Affairs. While there have been some reports of budget increases, the truth is it’s just not that simple. Here’s what’s going on in a nutshell:
Ongoing discussions about the need for more woodlands have been ignored in the new budget, as it contains no new funding for woodland creation projects. While the Nature for Climate Fund will continue providing support for tree-planting and peatland restoration, it is currently unclear how much of its funding will be earmarked for actual woodland creation. If there’s no increase in investment, then England’s annual tree-planting targets will continue
to lag behind those of Scotland, which has more robust tree-planting efforts.
Landowners with employees will most certainly feel the impact of the mandatory 1.2% increase in employer contributions for the National Insurance starting in April 2025. This increase will tighten the pressure on payroll expenses for those with labour-intensive environmental or farming projects. The timing of this increase has apparently been well chosen to coincide with a time when costs are already rising. Even smaller operations with fewer staff could still face added pressure, especially if they rely on their hired help for maintenance, planting, or conservation work.
While environmental funding will not enjoy the increases it deserves, carbon credits will still offer landowners a way to earn income. Landowners creating new woodlands or restoring peatlands can benefit from the Woodland Carbon Code and Peatland Code. They will be able to profit by generating verified carbon credits, and then selling them to companies or people seeking to offset their carbon emissions. Yet while using carbon credits hand in hand with support from existing programmes—such as the England Woodland Creation Offer EWCO) or Countryside Stewardship (CS)—should in theory maximise returns, without new funding in the budget, the practical benefits will likely be limited.
Even though the 2024 budget did not provide new funding for Biodiversity Net Gain (BNG) initiatives, it is still a primary objective within the UK’s environmental policies. BNG requirements call for a minimum 10% improvement in biodiversity in England, which in turn should allow landowners to create and sell BNG units to developers that otherwise couldn’t meet these requirements. While no new required funding has been provided, the aforementioned £400 million for tree-planting, peatland restoration, and the Nature Restoration Fund might be able to support these BNG goals, albeit indirectly. This would especially be feasible for landowners wishing to pair their carbon credits with biodiversity enhancements.
A landowner involved with a BNG project can take advantage of this sort of loophole funding, by combining their environmental improvements with carbon sequestration. Of course complexities arising from tax and compliance obligations are to be expected with anything dealing with any government, but BNG could represent a win-win situation. It could result in increased income, paired with good environmental stewardship. This would fit well with carbon credit projects such as the Woodland Carbon Code.
Funding for Countryside Stewardship (CS) and Environmental Land Management (ELM) remains, but the application processes have been tightened, and there is greater focus on efficiency. On the other hand, payments for various activities have increased slightly, such as creating field margins, and managing hedgerows. The 2024 budget somehow also managed to simplify application processes for ELM, which encouraged more participation especially in biodiversity and climate resilience projects. Yet these adjustments are shorter- term, as they focus on immediate returns at the expense of longer-term financial increases. The effect would be rather contradictory to the stated goals, as larger nature recovery targets could potentially be left to dry without any additional funding.
The budget has new funding for specific rewilding initiatives and nature recovery projects. Grants will be awarded for creating new wildlife corridors, pollinator habitats, and improving biodiversity in farmland. However, as mentioned at the top of this article, much of this funding comes at the expense of other existing budgets, and adds no funding that is actually new. This demonstrates the government’s focus on maximising efficiency with current resources, but this kind of minimalist funding also raises questions about whether the UK will be able to meet its environmental targets for 2030 and beyond.
Threats to trees such as ash dieback and the oak processionary moth are as persistent as oaks themselves, continuing to pose challenges. The budget continues to include support for Tree Health Pilot programmes, which provide grants for monitoring and replacing affecte trees, and for biosecurity training. For woodland managers, this has its immediate benefits, but without increased funding, any broader impact would be limited.
For landowners and those involved with nature recovery projects, the 2024 Autumn Budget provides new opportunities as well as challenges. Adjustments to the inheritance tax could place unwanted pressure on long-term family planning, but this could be offset by carbon credits and Countryside Stewardship. That is, if anyone is brave enough to deal with the bureaucracy. This budget when compared to previous years clearly demonstrates a more conservative approach: very few funding increases, and redistribution of existing resources. Landowners with an interest in environmental sustainability will need to take an interest in financial sustainability as well because of these changes. With the right tweeks, the currently available funding, and properly diversified income streams, could in fact keep your projects on track.
Key updates to the UK's environmental schemes in 2024 include increased payment rates, new actions in SFI and CS, and streamlined application processes to enhance sustainable land management.
