The Chancellor has delivered his Spring Statement. The CLA has said If the Government is serious about supporting the countryside, it must create the environment for rural businesses to thrive.The NFU says the measures in the Chancellor's statement will not mitigate the spiralling costs being faced, in particular with fertiliser, feed and labour costs.

Deputy President of the CLA, Victoria Vyvyan, stated:

“While the Chancellor’s Spring statement had some positive elements, including the increase in the threshold for National Insurance and a reduction in VAT on energy-saving technologies in homes, there was insufficient support for the rural economy and hospitality businesses. The failure to keep VAT at 12.5% for hospitality businesses will have a sizable impact on profitability at an already testing time for many. This is a blow for rural businesses that are being asked to diversify, and the reduction in business rates will not plug this gap. If the Government is serious about supporting the countryside, it must create the environment for rural businesses to thrive.”

FDF’s Chief Executive Karen Betts, said:

“Today’s ONS figures show prices for food and non-alcoholic drinks rose at the fastest rate since September 2011. This reflects the significant rises in ingredient, raw material and energy costs that food producers have been facing for many months now. All indications are that food price inflation is some way from peaking, and we expect prices to continue to rise for some months to come.

“Food and drink manufacturers, therefore, welcome the measures the Chancellor has announced to ease the cost-of-living crisis for UK households. In addition, we need government to consider other measures to cut the cost of doing business, to help stall rising prices, and stimulate growth such as removing complexity and cost from upcoming regulation. By establishing a National Food Security Council, government can help protect the resilience of the UK’s food producers and our food supply by reacting in real time to disruption as a result of turbulence in global commodity markets and international supply chains.”

Lib Dem Farming SpokespersonTim Farron said on Twitter "We have an international food security crisis but this Government is putting farmers out of business with their botched transition from the old farm payment scheme to the new one. The Chancellor had the chance today to fix this and back British farmers but he chose not to."

In parliament he said the Govt had no plan for farming and food security and said that the Chancellor should be freezing Basic Payment Scheme cuts for two years to allow farmers time to catch up and enter new schemes.

Mr Farron asked the Chancellor: “Is he aware that hundreds and hundreds of farmers are leaving the industry because of the botching of the transition from the old basic payments system to the new system?”