The Rural Update: Last chance for rural reset

Viewpoint

Barring an extraordinary turn of events, Andy Burnham will soon be walking through the door of 10 Downing Street as our next Prime Minister. This represents the last chance for the government to reset its failing relationship with rural businesses. As discussed below, Burnham has said little about food and farming in the past, so it seems unlikely that significant changes at Defra will be top of his to-do list, but he has voiced his concern over the changes to Inheritance Tax that have so angered farmers and other family-owned businesses. Hopefully, he and his likely new Chancellor will act quickly to undo the ill-conceived reforms that have achieved none of their objectives while severely damaging the confidence of farmers to invest in their businesses. Although such an act would not be a panacea for farming, it would at least show Burnham values the countryside and the contribution food producers make to the UK.

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In this week's update

• Red diesel tumbles
• Biodiesel OSR boost
• All change at No. 10
• Commercial EPC delay
• Meat carbon claims called out
• Natural milk boom
• EU gene-editing relaxation
• Brexit blues
• Dog paw personality
• Banknote wildlife choice
• Properties of the week
• Property markets Q1 2026

Commodity markets

Red diesel tumbles

The price of red diesel fell almost 15% last week, just in time for harvest. Despite concerns about the robustness of the latest Iran peace deal, with Iran threatening to close the Strait of Hormuz again in response to Israeli attacks in Lebanon, Brent Crude futures prices were still below US$80/barrel when trading opened yesterday (22 June) morning. Goldman Sachs has dropped its average Brent price forecast for 2027 to US$75/barrel.

Biodiesel OSR boost

Oilseed rape futures on the benchmark Paris exchange rose to 13-month highs last week on the back of robust demand for biodiesel, which accounts for two-thirds of European consumption. However, the relative strength of sterling means the gains have yet to work their way into UK farmgate prices, says trader Frontier. This could change as we head into harvest, with more of Canada’s crop heading to China following a sharp drop in import tariffs, it adds.

The headline

All change at No. 10

Andy Burnham, fresh from a decisive victory in the Makerfield by-election, looks set to become the UK’s next Prime Minister following Keir Starmer’s dramatic resignation yesterday and a declaration of support from potential rival Wes Streeting.

Rural lobby groups have already called on him to reset the Labour government’s relationship with the countryside.

CLA President Gavin Lane said: "The next leader should seize this opportunity to deliver an ambitious plan for the rural economy – one that backs investment, supports businesses and restores confidence across the countryside. That reset cannot happen without reversing the inheritance tax changes hanging over farms and family businesses.”

As a metropolitan mayor, Burnham has, unsurprisingly, had little to say regarding agricultural policy, but he has already indicated that he would be prepared to look again at the changes to agricultural and business property relief made by Chancellor Rachel Reeves, who looks likely to lose her job when he takes over.

However, of more concern to farmers and landed estates, he has also expressed an interest in replacing the business rates system with a broader land value tax.

As a committed housebuilder and critic of constraints on development, the new PM could look to relax planning rules further, but environmental groups are also urging him to undo some of the changes made by Labour, including the introduction of Environmental Delivery Plans, which they claim put nature at greater risk.

Burnham is a big fan of decentralising power from London and of more regional development spending. This could potentially benefit the rural economy if any extra cash can actually be found.

News in brief

Commercial EPC delay

The requirement for larger let commercial properties to achieve an Energy Performance Certificate (EPC) rating of B or above has been postponed until the end of 2031, as part of the government’s long-awaited response to its 2019 and 2021 consultations on Minimum Energy Efficiency Standards. An interim target of achieving an EPC rating of C by 2027 has been scrapped. The government also confirmed that there would be no change to the EPC E threshold required for buildings under 1,000 sq m.

Meat carbon claims called out

New research has called into doubt the perceived impact of meat consumption on the environment and the climate benefits of switching to a plant-based diet. The paper, Carbon tunnel vision and sustainable meat production in the West: A disproportionate focus on dietary greenhouse gas emissions?, written by researchers from the EU and US, claims the use of global averages to calculate carbon emissions, a failure to take into account the nutritional benefits of meat and dairy, or to compare pastoral system carbon baselines against natural grassland ecosystems, have all overstated the effects of livestock production.

Natural milk boom

The growing demand for less-processed food has sparked a surge in demand for unhomogenised milk, according to the retailer Waitrose, which says sales are up by over a third. Homogenisation is a high-pressure process that breaks down the fat molecules in milk rather than allowing them to rise naturally to the surface. The milk is still pasteurised.

EU gene-editing relaxation

Members of the European Parliament voted last week to allow gene-edited crops that could have been created by conventional breeding techniques to be grown and marketed in the bloc. Regulations, however, will be tighter for varieties edited using more complex techniques to be more tolerant of specific diseases and pests. The move could make the UK’s dynamic alignment process with the EU easier.

Brexit blues

Ten years on from the UK’s vote to leave the EU, most farmers do not feel that Brexit has been a success. According to a new poll by Farmers Weekly, 68% said the effect had been negative, citing loss of farm support, poor trade deals and lax border controls. A slim majority would now prefer to be back in the EU, compared with the 54% who voted to leave in 2016. However, just 41% would like to see another referendum.

Dog paw personality

It has long been known that dogs have a preferred paw, much as humans are left- or right-handed. However, new research suggests that a dog’s laterality can have an impact on its personality. The study by researchers at the University of Bari Aldo Moro (UNIBA) in Italy suggests that left-pawed dogs are more “pessimistic”, take fewer risks and appear to have a weaker immune response to rabies vaccination. Right-pawed dogs trained to herd sheep display more aggressive behaviour toward the animals, while ambilateral dogs appear to be more fearful of thunderstorms.

Banknote wildlife choice

Wildlife-loving readers have the chance to choose the images that will appear on the next set of banknotes issued by the Bank of England. Following a public consultation last year, the bank has decided to replace the current portraits of historic figures like Winston Churchill with iconic British fauna. The options include the bumblebee, hedgehog, barn owl and Atlantic salmon. Voting closes on 3 July.

Properties of the week

Wine week wonders

English Wine Week has just kicked off, and if you feel inspired to create your own vintage, Knight Frank has a tempting selection of new viticultural opportunities on offer.

Fresh to the market is Halnaker in West Sussex. Managed by Gusbourne since 2006, the 13-acre vineyard near Chichester has provided grapes for many of the firm’s award-winning wines. The guide price is £495,000.

Looking for something slightly larger? Priced at £2 million and just about to launch, Park Farm Vineyard is an 82-acre property near Poynings in the South Downs National Park. With around 33 acres of vines planted in 2018, the vineyard is now in full production. A range of buildings also offers the potential for conversion to a visitor centre and winery.

For those more interested in a joint venture, the opportunity to partner with the Betchworth Estate to produce co-branded wines on a well-located 37-acre site in the Surrey Hills National Landscape has also just become available. The Firle Estate in East Sussex is also searching for a partner to develop a 30-acre site and winery.

For more information on these and other off-market vineyards, please get in touch with Bertie Gilliat-Smith.