Small Abattoirs

[Sir Desmond Swayne in the Chair]

15:00:00

I beg to move, That this House has considered the potential merits of Government support for small abattoirs. It is a pleasure to see you in the Chair, Sir Desmond. I thank the Backbench Business Committee for scheduling this important debate. The abattoir industry is at crisis point. In 2023, just 60 small abattoirs—those with a throughput of less than 5,000 livestock units per year—were left in the UK. According to a 2022 Food Standards Agency report, small abattoirs are closing at the alarming rate of 10% per year, and within a decade they may well disappear altogether. To give an idea of the scale of the issue, in 2007 there were nearly 100 small abattoirs in the UK. The remaining small abattoirs face immense and multifaceted challenges to keep their facilities open for business. A 2021 National Craft Butchers study found that 59% of small abattoirs expected to shut down within five years unless they received Government support. The loss of these essential rural businesses poses major problems for local food infrastructure, animal welfare, biodiversity and food security. A resilient, shorter and farmer-focused supply chain requires small abattoirs and butchers who have connections with local restaurants, pubs and retailers. More than ever, local livestock producers need a well-distributed network of small abattoirs that offer private kill services to farmers who wish to add value by marketing and selling their meat directly to consumers, or to farmers who breed rare or native breeds but are often unable to use larger processors. However, two thirds of those farmers have reported issues in accessing appropriate abattoir services. Meanwhile, a third of respondents to a user survey by the Abattoir Sector Group reported that their local abattoir had already closed. That is devastating for so many farmers. Small abattoirs continue to deal with increased costs, such as rising energy costs and the recent increase in employer national insurance contributions, which threaten the viability of their businesses. However, they are also hampered by an expensive and punitive regulatory system that is not suited to addressing the nuances under which smaller processors have to operate. Earlier this week, Hugh Broom, a local farmer and an old Harper Adams University friend of mine, invited me to visit Down Land Traditional Meats, a small abattoir in Sussex that processes under 5,000 livestock units per year. It is vital for the local food infrastructure in the area. Luke Smith, who runs the business, served over 2,000 customers in February, with people coming from as far as Essex to access his services. After the closure of Newman’s Abattoir in Farnborough earlier this year, farmers on the Isle of Wight are being forced to travel further afield to access abattoir facilities on the mainland, further increasing their costs, as transporting livestock off the island by ferry is very expensive. Many of them are now going to Down Land. Demand has grown so much that many farmers now face long waiting times to get their animals booked in for slaughter. The scenario is replicated across the country.

The hon. Lady is making an excellent speech. As the MP for the Scottish Borders, which is a vast area, I share her concerns. Many of my farmers and food producers face the challenges to which she has referred. I agree with her points about animal welfare and supporting the rural economy. Does she agree that local abattoirs help the environment by reducing the carbon footprint of food production?

I absolutely agree. Reducing food miles is essential, along with carbon sequestration. Small farmers who supply local markets are doing sterling work by reducing food miles. At Down Land abattoir, Luke is struggling to keep up with demand, for so many reasons. Recruitment is an issue and so is retention of staff, because there has been such a dramatic decline in people opting to work in skilled-labour roles in the food sector, including slaughtering and butchery. The restriction in the size of his facilities is also restricting his output. That is coupled with the fact that much of the facility’s ageing equipment was not built to withstand the throughput that he is now driving in his business. It is in desperate need of investment. While I was visiting earlier this week, one of the cold stores had a major fault and had to be closed down. That carcase hanging space could not be used, which had a massive knock-on effect on what was already a really busy day. Most shockingly, Luke spoke passionately about the challenges that he faces every day because of the framework within which businesses like his must operate. Currently, the Food Standards Agency’s charging system is based on hours of onsite vet attendance. Abattoirs are charged a set hourly fee, irrespective of the animals slaughtered; discounts are currently available, depending on how many hours are used. Smaller sites, with a throughput of under 1,000 livestock units, are not required to have full-time OV attendance, so the majority of their hours will be covered by a 90% discount, but those that serve more than 1,000 livestock units will see their fees increased considerably. In June 2025, the FSA will have to decide whether to launch a public consultation on the discount or accept the Treasury’s desire to remove it. The Association of Independent Meat Suppliers has warned that the estimated full costs will lead to the closure of 40% of the small abattoirs left in England and Wales. This comes on top of the FSA’s increase in inspection fees of approximately 20% from April this year. I ask the Minister to ensure the continuation of the small abattoir discount on inspection charges so that small abattoirs can remain financially viable. Many small abattoirs feel penalised by the FSA, with constant inspections bringing up issues that were not found in their most recent audit. Some have received enforcement notices, which cost yet more money, to alter bits of equipment, add a bit of plastic roofing or add a bit of horsehair to the bottom of a door. All the while, the FSA provides no statutory right for abattoirs to appeal. Those in the industry have told me that it acts as judge, jury and executioner. The frustration is palpable. The FSA’s charges are based on a time recording system that provides its inspectors with little incentive to deliver an efficient system. Many invoices are incorrect or fail to match up to the timesheets. The abattoir then has to re-read them and approach the FSA to get them changed. Then the invoices are reprocessed, and off they go again. It is hugely frustrating for small abattoirs, which simply do not have the number of staff necessary to make such changes or indeed to keep up with the FSA. They are being forced to comply with a system that is not suited to their business model. Like many farmers and smallholders in Glastonbury and Somerton, I use my local small abattoir to process my lamb. Mine is Strap Orchard, in Wincanton, which is allowed to kill only between 6 am and 12 noon, and only when the onsite vet is present. Monday is its busiest day of the week. I am told that on one Monday, the OV turned up late, as they invariably do, and by 12 noon all but one lamb had been slaughtered. At exactly 12 noon, the OV instructed them to stop immediately, despite knowing that the only reason why the work was not finished was their own late arrival. The lamb was returned to the lairage area and had to be collected by the farmer, who then had to return it on the next slaughter day. The welfare impact was clearly significant, as was the inconvenience to everybody involved. That is just one small example of the difficult environment in which small abattoirs must survive. I implore the Minister and right hon. and hon. Members across the House to visit a small abattoir and find out more about the difficulties that they face. Fractious working relationships and financial frustrations with the FSA are a significant reason why some small abattoirs have shut down or are considering closing, leaving the local food supply without a critical piece of infrastructure. The resulting impact is felt most heavily by local farmers. The Environment Agency is working with farmers to find solutions to the issues, so it is high time that the FSA started to do the same. There is no question but that food safety must come first. However, that must be achieved by working with small abattoirs, not by punishing them at every turn. We need the FSA to build positive and mutually beneficial working relationships with small abattoirs to ensure food safety and food security, while enabling them to be as efficient and profitable as possible. The FSA does not seem concerned about the important role that small abattoirs play as a vital piece of local food infrastructure. It appears that it views them as a difficult stakeholder in comparison with larger, centralised processes, so there is a clear conflict of aims and interests. I believe that the Department for Environment, Food and Rural Affairs can set a framework that values the contributions that small abattoirs make to local food systems. It has previously noted that it “recognises the vital contribution a thriving abattoir network plays” in achieving a resilient food supply chain, and it has said that it will work with abattoirs of all sizes to tackle the challenges that they face. Can the Minister explain where small abattoirs sit in DEFRA’s future farming road map? I urge him to set out how he will support small abattoirs as they deal with the difficult challenges that they face. Small abattoirs should be recognised as critical pieces of livestock infrastructure that provide a diverse range of services. I recently spoke to Gavin Keen of the multi-award-winning Blackmore Vale butchery, which is based in Henstridge in Glastonbury and Somerton. Gavin has carried out a study of abattoirs in the local area. He tells me that there are just six abattoirs that provide private kill services for farmers who are semi-local to the constituency, and that the closure of any of them would present a major logistical challenge to the local food infrastructure. Concerningly, nearly all these abattoirs, like Down Land in Sussex, are operating at or close to capacity, leaving farmers with long waiting lists to get their livestock booked in. It is critical that the UK has a network of abattoirs in areas of production offering services and processing, allowing value to return to the farm and allowing farmers to retail their own meat, because that can add a significant mark-up to their produce. The closure of abattoirs that offer private kill can and will hit farm revenues hard and limit farmers’ ability to diversify their income. The Liberal Democrats are clear that this network of small abattoirs is an important asset for our rural communities. We have called for a £1 billion package to be added to the farming budget to support the agricultural sector. The Liberal Democrats also passed a motion at our spring conference this year that affirms our commitment to upholding the high animal welfare standards in British farming, including through support for small abattoirs. Private kill services offered by small abattoirs allow farmers to add value to their produce by enabling them to retail the meat themselves. A survey by the Royal Countryside Fund found that farmers using private kill services in England were able to add significant value— £56 for an individual sheep and up to £3,775 for cattle. According to the Rare Breeds Survival Trust, the continued existence of small abattoirs is vital for rare and native breed farmers. Breeding rare and native breeds provides significant public good—from increased biodiversity to high-welfare, low-input meat production. However, if smaller abattoirs offering private kill services close, many of those farmers will need to change their business practices, given that 90% of native breed producers rely on those services. Native breeds mature more slowly than commercial ones, and many large abattoirs will not take cattle over 30 months old, while horned cattle and large pigs are regularly banned from large abattoirs. If we want to support agro-ecological farming, we must ensure there is diversity within our livestock. It is not just about retaining important historical and cultural breeds, but recognising the important role that biodiversity plays in the future of farming. Given the precarious financial position of farmers across the country, the loss of private kill options could be devastating. In fact, a British Farming Union members’ survey from March last year found that direct sales are such a critical component of some farming businesses that without them, their business would cease to exist. Let us be under no illusions. Farmers are still reeling from the hammer blows that were the family farm tax and increased employers’ national insurance contributions announced in the autumn Budget. Then, most recently, came the abrupt closure of the sustainable farming incentive scheme, leaving some farmers’ business plans utterly devastated. Farmers have been at the receiving end of some terrible decisions, many of them made by the previous Conservative Government. Following the botched transition from basic payments, farmers have just about managed to struggle on. The last Conservative Government proved themselves inept at supporting British agriculture, while the current Labour Government are proving that they just do not understand the industry. The Liberal Democrats were disappointed to see the Government fail to replace the smaller abattoir fund, which closed in September 2024. I believe if this Government are serious about supporting British agriculture, a great opportunity presents itself today to step up and recognise the crucial role that small abattoirs play in the food supply chain. I would like to touch on the workforce planning issues that the small abattoir sector faces, the impact of which will only increase over the coming years. Working in a small abattoir is very different from working in a larger processor; in a small facility, employees are expected to carry out a multitude of different jobs, as opposed to a larger abattoir, where employees work in a line system, generally specialising in performing just one task. The lack of skilled labour in the meat sector has dire implications for food security, and makes it harder to reach our environmental and sustainability goals. One in four food and drink workers are due to retire within the next year, while the average age of a small abattoir operator is between 60 and 70 years old. In line with Henry Dimbleby’s national food strategy, we must invest in training and education for the food industry. The Liberal Democrats are clear: we need to invest in workforce planning to ensure that we have enough vets, abattoir workers, slaughtermen and farm workers to meet the UK’s needs. That is a crucial element of UK food security. The Government’s own review recommends implementing a comprehensive strategy to improve awareness of opportunities in the food supply chain. Currently, the system does not make it easy for abattoirs to take on apprentices, nor is it appealing for those that seek to undertake training. Abattoir apprenticeships only go up to level 2, and apprentices receive a meagre £6,000 a year, which is nowhere near sufficient to cover training, travel and accommodation. That is hardly an incentive to enter the trade. I would welcome the Minister’s comments on the steps his Department is taking to improve workforce planning in this sector. We must focus on the long-term viability of these crucial elements of the livestock infrastructure. Does the Minister agree that the UK-wide local network of abattoirs is vital for food security, animal welfare and the profitability of our farmers? Could he also confirm that in order to sustain and grow the network of abattoirs, he will ensure that the Government’s existing small abattoir working group will have a proactive focus on delivery, working with both local and national Governments? If so, will he commit to meet regularly with the co-chairs of the industry and Government working group to give this crucial issue the attention it so clearly deserves? To conclude, it is clear that small abattoirs are central to our local food supply chain, and there will be a dire impact if we lose them. We need DEFRA to step up and frame its importance in local food infrastructure. We need long-term workforce planning, and a system that meets the needs of livestock producers and proactively works with stakeholders throughout the supply chain. If not, farming businesses and the supply chain will suffer.

15:21:00

Over the past 50 years, abattoirs have rapidly vanished. More than 90% of them have closed. Across the country, family farms that once relied on local slaughterhouses now face round trips of over 100 miles just to kill a handful of animals to provide the meat for our tables. That drives up costs and, ironically, increases the stress on livestock that our welfare laws seek to mitigate. Alongside Labour’s family farm tax, the closure of the sustainable farming incentive and the end of the fruit and vegetables aid scheme, this additional burden is pushing many of our farmers to the financial and mental brink. Small abattoirs are essential to our regional supply chain. They enable the sale of high-welfare local meat. They underpin farmers’ ability to add value and differentiate themselves in the market. They are also vital to preserving native rare breeds, small-scale mixed farming and the rural way of life that defines my constituency, Weald of Kent. Let us consider for a moment what a small farmer in the Weald—someone rearing Romney sheep, say—actually has to do simply to sell meat from the animals they breed and raise. First, they must register their land with the Rural Payments Agency for a county parish holding number, and then register their animals with the Animal and Plant Health Agency. Every animal must be marked with official identification tags, and all livestock movements must be recorded and reported using approved forms. If animals are moved for sale or slaughter, or even between farms, it triggers further paperwork. Transporting them over 65 km, as many farms must as more abattoirs close, is another special authorisation and haulier certification. If the animal is to be slaughtered for sale, the rules multiply. The farmer must log all medicine use and vaccines as per the Veterinary Medicines Directorate standards, complete food chain information forms for the Food Standards Agency, and potentially have the animal inspected in advance by an authorised vet. Slaughter itself can be carried out only by someone holding a certificate of competence under the Welfare of Animals at the Time of Killing (England) Regulations 2015, and the carcase must then be health-marked after inspection by an FSA official vet, for which the processor is charged by the hour. Even after all that, offal, hides and other by-products are regulated separately under animal by-product rules, often with disposal costs that exceed their market value. That is the regulatory burden on a small-scale producer: multiple agencies, overlapping rules and no distinction between a local farm shop and a multinational meat processor. This is not proportionate regulation; it is bureaucracy for bureaucracy’s sake. It is not only putting small farmers and small abattoirs out of business, but putting our rural culture and heritage at risk of extinction. Small abattoirs do not need favours; they need fairness. Given all the pain that the Government have inflicted upon the agricultural community, it is time our farmers were finally given a chance to succeed. I beg the Minister to ease these regulations before the final small abattoirs close and it is too late.

15:24:00

It is a pleasure to serve under your chairmanship, Sir Desmond. I congratulate the hon. Member for Glastonbury and Somerton (Sarah Dyke) on securing this very important debate. We have heard about the situation for abattoirs in general, and in Wales it is just as stark. The number of operational red meat abattoirs in Wales has dropped from some 60 in 1990 to just 17 last year. As other Members have eloquently outlined, the importance of small abattoirs to our rural economies cannot be overstated. The hon. Member for Glastonbury and Somerton underlined how important they are as a cog in a vital supply chain for the rural economy. We should not forget that if we were to lose more of our small abattoirs, many of which face extinction, we would also see the demise of the surrounding agricultural industry. In areas such as Ceredigion Preseli, in which agriculture is a key pillar of the local economy, there would be an economic hit for the wider population, so it is urgent that we maintain the network of small abattoirs and hopefully expand it through Government support. The hon. Member for Weald of Kent (Katie Lam) mentioned the disproportionate regulatory burdens that small abattoirs face. That complaint and that experience is echoed by some constituents of mine who run a very small abattoir near Tregaron, Cig Oen Caron. They provide an invaluable service to local famers. They not only provide private kill services of a kind that larger operators do not offer, which allow them to diversify their income and build their business, but ensure high animal welfare standards and cater to a variety of farming models. It has already been said that larger operators seldom offer multi-species or rare breed services. Small abattoirs fill that gap in the market. If we were to lose small abattoirs, a number of business models that are so important in all parts of the United Kingdom, including my own, will become unviable. It is also important to note that if we lose more small abattoirs, the distance that farmers must travel to take their animals to slaughter will increase. Average journey times are already unacceptable, given the added stress, the animal welfare concerns and the carbon footprint. In Wales, we need to ensure that the existing very small network of proud and, in many cases, family-run small abattoirs is supported. The Welsh Government have responsibility for infrastructure development, so I will not ask the Minister to help us in that regard, but the UK Government can help small abattoirs in Wales with the cost of regulation and the inspection regime undertaken by the Food Standards Agency. The owners of Cig Oen Caron have approached me in recent years to explain the pressure that that added cost places on their business. More recently, there has been an 18% increase to their costs, so the importance of retaining the small abattoir discount is pressing. I would welcome any reassurances that the Minister can offer, not only that the discount will be retained but that the Government will consider with an open mind expanding it for the smallest abattoirs in recognition of the fact that the general costs are increasing. If we are to maintain a diverse, geographically sparse and accessible network of small abattoirs in this country, the Government need to support it. If they are serious about treating small abattoirs as a key piece of infrastructure—let us not forget that they are critical for our farming businesses and rural economies—Government support through grants to improve infrastructure and with regulatory burdens is well overdue. I, for one, would welcome it if the Government made moves in that direction.

15:28:00

I thank the hon. Member for Glastonbury and Somerton (Sarah Dyke) for securing this important debate. Several farmers in my constituency have contacted me to raise concerns about the threat to small-scale abattoirs, to express how vital they are to their business and to ask me to take part in this debate to share the challenges they face as a result of the disappearance of small-scale abattoirs and their fears for their future. I thank the Brighton and Hove food partnership and the Wealden food partnership for their local research on this matter. Small-scale farms go hand in hand with small-scale abattoirs, which offer the flexibility that small farms need to rear a diverse range of breeds. In Sussex, they support conservation efforts to restore a rare and highly diverse habitat. We are incredibly fortunate in East Sussex to have one of the rarest habitats in the UK—chalk grasslands, which have formed over thousands of years and have created the conditions for a rich, biodiverse ecosystem of rare plants and animals. The South Downs national park authority highlights that we can find up to 40 different species within 1 square metre. Since world war two, however, the UK has seen an 80% reduction in these chalk grasslands, making their conservation an important local issue, as the last remaining areas are under threat from spreading scrub, including nettles, hawthorns and brambles. Local farmers can support these crucial and rare grasslands through a process known as conservation grazing, which is considered an important tool in local efforts. Conservation grazing is the practice of using primarily native breeds of grass-grazing livestock to selectively graze out problem or invasive species, most often without the need for supplementary feeding. That gives our chalk grasslands the opportunity to start growing, instead of continuing to shrink. The native breed animals needed to do that, however, are typically smaller and less homogenised than the products we are used to seeing in supermarkets. Most large-scale abattoirs sell directly only to wholesalers and supermarkets, which creates a number of problems. Supermarkets have very clear specifications of what they consider to be an acceptable cut of meat. Often, the native breed animals that farmers would use in conservation grazing will not be accepted by supermarkets, as they produce cuts that are too small or too variable, meaning that large-scale abattoirs will not accept those livestock in the first place. Farmers are then restricted in the breeds they can rear. Large abattoirs usually do not allow farmers to reclaim their meat to sell locally. If farmers are able to sell their own meat, they are also often able to make a small premium, which tells the story of their farm and recognises the slow and sustainable pace at which the animals were grown. That is where small-scale abattoirs such as Down Land Traditional Meats come in. The abattoir is in Henfield, West Sussex, in the constituency of my hon. Friend the Member for Arundel and South Downs (Andrew Griffith), who I know has been doing his best to support it. It provides an essential service to local farmers in my constituency and across Sussex. The abattoir is willing to accept those native livestock species and allow farmers to get their meat back. Sadly, like many small-scale abattoirs, Down Land Traditional Meats faces potential closure due to a range of different factors. Some are specific to its circumstances, but there are pressures outside its immediate control. One pressure, as has been mentioned by other Members, is an uplift in the FSA hourly rates for official vets and meat hygiene inspectors visiting meat premises for the 2025-26 financial year, which on average is close to 20%. It is true that the very smallest abattoirs have discounts on those rates, which have remained, but for those abattoirs in the middle bands, there has been a decrease in the discounts from 26% to 17% and from 14% to 6% respectively. That puts immense financial pressure on already tight margins. Without small-scale abattoirs, local farmers and businesses will have to start reconsidering practices such as conservation grazing or start looking further afield into other parts of England, but that comes with its own consequences. Whatever their size and make-up, there are good reasons to have a good spread of abattoirs across the country so that all farmers are reasonably close to one. In that regard, the south of England already has a disadvantage compared with the rest of the country, as there are so few abattoirs of any kind—only Scotland has fewer per square mile. Using more distant abattoirs would increase the transit time for livestock. That is a great concern to farmers in my constituency, as their livestock would have to be placed in bigger lorries and travel longer distances. Long journeys increase stress in animals as they are exposed to crowded conditions, noisy vehicles, vibrations, a lack of food and water or space to rest, and fluctuating temperatures. On an economic point for farmers, the cost of increased transportation will further cut into their tight margins, making an already costly business even more expensive and, perhaps for some, unviable. The last Government recognised the importance of small abattoirs and the role they play in providing a route for farmers to rear rare and native breeds, which is why they launched the £4 million smaller abattoir fund to boost the sustainability and efficiency of red meat and poultry abattoirs across England. The fund awarded capital grants from £2,000 up to a maximum of £60,000 to help smaller abattoirs across England improve productivity, enhance animal health and welfare, add value to primary products and encourage innovation and investment in new technologies. Six months after the launch, recognising further pressures, the last Government increased the maximum grant value to £70,000. Meanwhile, this Labour Government have instead introduced devastating changes to inheritance tax laws through their cruel family farm tax, which will mean that many small farms will have to sell land to larger so-called super farms, which may not have the same sense of guardianship over the land as our smaller local farmers. I finish with a number of questions for the Minister. First, given the increased costs, what assessments have the Government made of reforming the professions that can conduct the necessary welfare checks? Are they confident that only a vet can fulfil all the duties currently fulfilled by vets at that increased cost? Secondly, what plans are there for further direct funding support for small abattoirs? Finally, what assessment have the Government made of the impact of the fee increase? Can they commit to freezing fees for next year? I welcome this opportunity to raise those concerns on behalf of farmers in my constituency, and I look forward to the Minister providing the concrete plans and reassurances that my local farmers seek.

15:34:00

It is a privilege to serve under your chairmanship, Sir Desmond. I thank my hon. Friend the Member for Glastonbury and Somerton (Sarah Dyke) for securing this important debate and making such a compelling case for the importance of small abattoirs to the rural economy. Support for small abattoirs is vital not just in my constituency but in rural communities throughout Great Britain and Northern Ireland. The challenges that these facilities face are symptomatic of broader issues in our food infrastructure, rural economies and national food strategy. The Liberal Democrats reaffirmed our commitment to this cause by passing a motion at our 2025 spring conference that recognised the essential role that small abattoirs play in maintaining high animal welfare standards—standards that British and Welsh farmers are rightly proud of and which consumers increasingly expect. But we cannot ignore the facts. The number of abattoirs in the UK has plummeted over the last 30 years. Between 2018 and 2022 alone, the number of smaller red meat abattoirs fell by 25% and the number of small poultry abattoirs fell by an alarming 40%. Those closures are being driven by rising costs and mounting regulatory burdens—pressures that smaller facilities are ill equipped to absorb. The decline comes at a tremendous cost to animal welfare, rural economies, local food resilience and consumer choice. I will begin with animal welfare, a topic that has been raised several times today. Small abattoirs dramatically reduce food miles by offering local slaughter options. That is not a minor detail, as it means that animals spend less time in transit, endure less stress and arrive at slaughter in better condition. Slaughtering animals as close as possible to where they are reared is a principle that should be central to any ethical food infrastructure. There is also a very strong economic case. Small abattoirs support rural economies by providing jobs and anchoring local supply chains. They keep value within communities and help producers to secure higher value through direct-to-consumer sales. Demand is rising for high-quality Welsh meat. Several farmers in my constituency are doing a roaring trade after setting up their own meat box businesses—I will be picking up mine from Geraint this weekend. The Government should encourage this welcome trend because it helps to address the power imbalance in our food system. Large abattoirs are often contractually tied to supermarkets and cannot return small quantities to individual producers. In my constituency, W. J. George Butchers in Talgarth exemplifies the value added by independent abattoirs. The family-owned business has been serving our local community for more than 135 years. Its model is rooted in local relationships. Animals are selected directly from trusted farms, processed on-site and sold with full traceability. It is precisely that level of quality, integrity and traceability that consumers want and small abattoirs can deliver. Beyond the local economy, there are national implications. In recent weeks, we have seen large supply chains, such as those used by Marks & Spencer and the Co-op, hacked and disrupted, which illustrates the fragility of overcentralised systems dominated by the big corporations. Small abattoirs offer resilience in the supply chain. They distribute risk, reduce dependence on long- haul logistics and provide extra capacity in our food infrastructure. That is good not only for business but for national food security. The need for support is clear, but recent Government action has fallen short. The previous Conservative Government omitted small abattoirs entirely from their food strategy, and this new Labour Government, despite Labour’s manifesto commitment to uphold the highest animal welfare standards, have yet to replace the smaller abattoir fund, which was closed in September 2024. In Wales, the situation is even worse. The Welsh Labour Government have not provided support for small abattoirs for many years. To compound matters, the Food Standards Agency imposed a 20% increase on meat inspection fees in April 2025. That is a crushing burden on already struggling small operators. If we are serious about encouraging ethical and sustainable farming, we must stop penalising the very facilities that make it possible. I urge the Government to consider authorising mobile slaughterhouses, which could play a key role in reaching isolated areas and reducing infrastructure costs. I hope that the Minister might offer an update on the progress of such plans with the Food Standards Agency in his response. There is also scope for smarter regulation. With the help of recent technological advances in monitoring and traceability, it may be time to explore a lighter-touch regulatory framework for small abattoirs—one that maintains safety and quality but reduces compliance costs that disproportionately affect smaller facilities. Finally, we must improve food labelling. Customers want transparency. Now more than ever, they want to know how and where an animal was raised. That information helps to empower consumers and create a more informed, value-driven market. In conclusion, small abattoirs are community assets. They support high animal welfare, reduce food miles, sustain rural economies, provide producers with added value and increase our food system’s resilience. The Liberal Democrats will continue to champion their cause. I join my honourable colleagues in calling on the Government to replace the smaller abattoir fund, to consult meaningfully with the sector and to back the infrastructure and regulatory reform needed to keep these vital operations thriving. In doing so, we would uphold not just animal welfare but the health and sustainability of our entire food system.

15:41:00

It is a pleasure to serve under your chairmanship, Sir Desmond. I thank the hon. Member for Glastonbury and Somerton (Sarah Dyke) for securing this incredibly important debate. As has been indicated in all the contributions, we realise that small abattoirs are a vital part of our food supply chain and, therefore, of our national food security. The benefits of encouraging a diverse range of abattoirs of all sizes are incredibly important not only for food supply but for supporting the rural economy. Farming businesses rely on them. If they are not there, opportunities for our farmers, our rural economy and our consumers are significantly reduced. Small abattoirs bring greater market competition, helping our farmers to secure the best price for their produce. They often provide specialist services, such as slaughter for horned cattle or outdoor pigs, which is not always offered by larger establishments, as we have heard. We do not always hear in this House about how the opportunities provided by small abattoirs are incredibly important for many in our farming community. Private kill services, which farmers looking to diversify increasingly rely on, are also a speciality of our smaller abattoirs. With regard to animal welfare, smaller abattoirs are well suited to ensuring that each animal receives humane treatment. Reduced travel distances mean that animals arrive less stressed than they would after a longer journey. Those shorter travel distances also cut down on haulage costs and emissions in our meat sector, as my hon. Friend the Member for Berwickshire, Roxburgh and Selkirk (John Lamont) indicated in his intervention. In rural communities across the country, small abattoirs ensure that more business is done locally by providing jobs and a local supply of produce for businesses further down the supply chain. However, we have unfortunately seen a decline in small and medium-sized abattoirs across the country, with areas such as northern Scotland, northern England and the south-east in particular experiencing a short supply of small abattoirs. A survey of farm businesses recently showed that 51% of respondents had to find new abattoirs after the closure of their original provider. Between 2018 and 2022, smaller red meat abattoirs declined by around 25% and smaller poultry abattoirs declined by around 40%. A survey undertaken by National Craft Butchers indicated that 59% of abattoirs processing less than 1,000 livestock units a year would close within two to five years without any Government intervention. In 2023, that analysis was unfortunately on track. The previous Government decided to act on that by introducing the smaller abattoir fund. However, the costs to our smaller abattoirs have significantly increased. As has been mentioned, energy costs are often much higher for smaller abattoirs. The employer national insurance increase, the minimum wage increase and the challenges around skills are increasing those challenges. The previous Government understood the problem and delivered the £4 million smaller abattoir fund, with 42% of eligible businesses applying. It delivered critical investment into the sector, making it more productive and improving produce quality and animal welfare standards. I urge the Government to continue rolling out that fund, which provided funds from £4,000 to up to £60,000. That was increased from an intervention rate of 40% to 50%, with the upper limit increasing to £75,000 to cover off some of the challenges. Specific issues were picked up by colleagues in their contributions. My hon. Friend the Member for Bexhill and Battle (Dr Mullan) mentioned the challenges in the south-east. I know that he and my hon. Friend the Member for Arundel and South Downs (Andrew Griffith) had specific challenges associated with their abattoir in Henfield. My hon. Friend the Member for Arundel and South Downs met the chief executive of Horsham district council and managed to secure a £300,000 grant to help keep the abattoir open. That illustrates the nature of the challenge. The changes to employer’s national insurance have been exacerbated by the additional costs associated with energy and running a small abattoir, so sometimes the Government need to intervene and assist. We also need to get to a position of fairness throughout the whole of the supply chain, as was rightly suggested by my hon. Friend the Member for Weald of Kent (Katie Lam). Farmers want fairness, not favours. We must get to a position where there is fairness in the supply chain. Government intervention sometimes helps the small abattoirs that provide a much better level of service to our rural economy, rather than farmers having to rely on larger abattoirs. Sometimes intervention helps, so I reiterate the calls on the Government to roll out the smaller abattoir fund again. We also delivered the Animal Welfare (Livestock Exports) Act 2024, which banned the export of live animals for slaughter. Not only did that end an often inhumane practice, but it provided further reassurance for the sector. The first thing that the Government could do is unequivocally recognise the importance of smaller abattoirs, primarily focusing on the supply chain. The Government should ensure that the supply chain—and abattoirs—are encompassed within their food strategy. Part of the review should include looking closely not only at a second round of the smaller abattoir fund, but at whether there are circumstances in which smaller abattoirs do not need the additional costs of energy. What plans does the Minister have for regulatory reform in the abattoir sector? At a time when the Government are advocating for greater alignment with Europe, does he recognise that many of the EU directives still in force in this country did great damage to our smaller abattoirs? There is also growing concern about the financial burden placed on our smaller abattoirs by the Food Standards Agency, to which Members have referred. What steps is the Minister taking to ensure that smaller abattoirs are not disproportionately affected by the rise in inspection costs? More broadly, what is he doing to ensure that the FSA delivers value for money? The debate has rightly acknowledged the FSA’s rollout of increased charges. The uplift from March 2025, which impacts our smaller abattoirs, will have a direct impact in this financial year and the next. The Opposition agree with the National Farmers Union that the further pressure on the small and medium-sized abattoirs that are struggling with additional costs and regulatory burdens has been exacerbated by the implications of the FSA’s additional charging. Furthermore, we want clarity from the Government about what they intend to do on the 5% rule, which would significantly reduce the regulatory burden for the smallest abattoirs. As we know, if such a rule was in place it would enable smaller abattoirs to slaughter up to 5% of the total national throughput without triggering a full veterinary presence and therefore without the additional costs associated with their going above 1,000 units and having veterinary officers present. Will the Minister indicate the Government’s intentions on the 5% rule? The Government must also consider the benefits to small abattoirs of future food labelling reviews. Will the Minister tell us the Government’s intentions? Better consumer awareness through food labelling would help smaller abattoirs to sell their produce as more humane, more local and better placed for the consumer. I would appreciate it if he outlined the Government’s intentions in that regard. To summarise, our rural economy has faced additional pressures not just through the family farm tax and the removal of the SFI but through the dramatic reduction in de-linked payments to £7,200. It is being further hit by the dramatic reduction in small abattoirs and consequently the reduced ability to slaughter produce at a local facility. I call on the Government not only to roll out additional incentives nationally through the smaller abattoir fund but to take on board the many contributions that have been made in the debate, so they can ensure that our farmers and our rural economy continue to thrive.

15:51:00

It is a pleasure to see you in the Chair, Sir Desmond. I thank the hon. Member for Glastonbury and Somerton (Sarah Dyke) for securing the debate, and for delivering a thorough and thoughtful introduction to a subject that matters deeply to all those who have spoken today and indeed to many of us across the House. I am also grateful for the thoughtful contributions to the debate from a range of Members. I thank the UK meat processing industry for all it does to provide us with products that meet high human health, environmental and animal welfare standards, and to support our domestic food supply chains and strong export market. In 2024, the sector was worth some £12 billion. Today, we are obviously concentrating on the small abattoir sector. Over 93% of meat is slaughtered in larger slaughterhouses but, as has been outlined, the small abattoir sector is still very important, particularly in dealing with rare breeds and in achieving the premium outcomes that I think we all want to support. Everyone who has spoken has made a strong case for the importance of small abattoirs, because they contribute to economic growth in rural communities, provide skilled employment opportunities and offer an outlet to market for those who farm rare and native breeds. As has been said, they promote animal welfare by enabling shorter journey times to slaughter. We are all aware that the situation for small abattoirs has been an issue for a number of years. Of course, over the last few years a number of smaller abattoirs have closed; some of them have been mentioned in this debate. However, it is also worth pointing out that a number of small abattoirs work very effectively, and have shown remarkable adaptability and resilience. We saw that during the covid-19 pandemic and during disease outbreaks, and we have all heard and understand the crucial role that they play in the agricultural community. When one looks at the map to see where they are, one sees that they are still quite spread out, although quite clearly there are areas of the country that are particularly challenged. Several Members mentioned the Food Standards Agency’s ongoing evaluation of the discount scheme for meat inspection charges. Obviously, some elements are for the FSA to consider, but as a Minister I can also have a view. Although it is necessary to review such schemes periodically, I absolutely recognise the importance of the discount scheme to smaller abattoirs and the contribution that the industry can make to the evaluation process. That important point was raised by the hon. Member for Ceredigion Preseli (Ben Lake), who has since had to go to the main Chamber, and by the hon. Member for Glastonbury and Somerton. After the call for evidence in autumn last year, the FSA has hosted several engagement sessions to provide stakeholders with an opportunity to share their views on discounts, so there is an ongoing discussion about discounts and how they should be structured in the future. My understanding from those discussions is that there was positive engagement, and that the information that was gathered from those sessions will inform future proposals. I can assure hon. Members that the Government will continue to engage with the sector on those wider priorities, concerns and opportunities, and we will use some of the well-established forums, some of which were mentioned earlier—the small abattoir working group and the small abattoirs task and finish group. I am very grateful to the members of these groups; they provide a valuable opportunity for Government to collaborate with stakeholders on finding, where possible, practical solutions to the priority challenges they have identified, and to support our shared ambition for future resilience and growth. I checked earlier, and they have had meetings recently, in March and January, and I will look closely at the suggestions that they make. One of the areas in which we have been working closely with the industry, and the Food Standards Agency, is in looking at how we can reduce regulatory and administrative burdens within the framework within which the wider abattoir sector operates. We have to get the right balance because, clearly, we need to make sure that the proper standards are maintained, but also that the regulation is appropriate and proportionate. I absolutely hear the point that has been made that it often seems that there is a disproportionate impact on the smaller abattoirs, as it can be hard for them to meet because of their size. Actions have been taken already, and will continue to be taken, including the introduction of the reduced administration initiative, which aims to remove certain daily administrative tasks for food business operators, and the FSA escalation process, which is designed to help abattoirs quickly raise and resolve operational issues. I can pledge that we will continue to work collaboratively with the industry, and focus on evaluating the feasibility of other potential flexibilities, including relaxing post-mortem checks within smaller abattoirs. I am also aware of the impact that recent disease outbreaks have had on the sector. The spread of diseases means that it is sometimes necessary to implement restriction zones, and abattoirs must be designated to receive animals for slaughter from within those restriction zones. Again, I appreciate and understand the difficulties that that can place on both farmers and processors. We have made this process as simple as possible by working closely with both the Food Standards Agency and Food Standards Scotland. Before turning to some of the other actions that the Government are taking, I want to take the opportunity to use this debate to pose a few questions for us all to consider, some of which have already been raised. How can we raise awareness about the vital role that smaller abattoirs play in maintaining the UK’s food supply, and how can we work with local butcheries and farm shops in promoting the added value to primary products, which we have heard about from others? We should also look at the rural employment opportunities that are provided for skilled workers while continuing to innovate and use new technology to drive efficiencies and productivity. I genuinely believe that this is a sector that has a good story to tell.

The Minister is absolutely right to highlight the importance of supporting local food production and ensuring that consumers here in the UK buy local. I just wonder how that stacks up with what President Trump has just said, which is that this new UK-US trade deal “includes billions of dollars of increased market access for American exports, especially in agriculture, dramatically increasing access for American beef, ethanol, and virtually all the products produced by our great farmers.” How does that fit in with encouraging people to buy British products?

I am grateful to the hon. Gentleman for taking the opportunity to shoehorn a wider issue into the debate this afternoon. I would encourage him to look more closely at the details as presented by the UK Government, which are a very reliable source of information.

But not President Trump?

I could not possibly comment. I will return to the issue of small abattoirs, but I can assure the hon. Gentleman that this Government are absolutely committed to making sure that we uphold the very high standards that we have in this country, and that is what we have achieved through the agreement. Returning to small abattoirs, we are working to modernise statutory livestock traceability services, which should make a big difference over the next two to three years and make it less burdensome for all actors in the supply chain to report the movement of animals into their premises. As we advance those opportunities, we have been working with the industry to identify ways of helping to alleviate the pressures that smaller abattoirs face with the disposal of animal by-products and with labour supply—again, points that were raised in the opening speeches. We will continue to work closely with the industry to explore potential solutions. To further support economic growth, we remain committed to harnessing the purchasing power of the procurement supply chain to set the tone for delivering our wider ambitions on sustainability, animal welfare and health. We have an ambition to supply half of all food into the public sector from local producers or those certified to higher environmental standards, in line with our World Trade Organisation and domestic procurement obligations. For the first time, as the Secretary of State announced at the Oxford farming conference in January, the Government will review the food currently bought by the public sector and where it is bought from. That work will be a significant first step to inform future changes to public sector food procurement policies, helping to create an equal playing field for British producers to bid into the £5 billion spent each year on public sector catering contracts. As the Secretary of State also announced, we are committed to streamlining planning processes for agricultural infrastructure through the Government’s planned consultation on the national planning policy framework. That will give us the opportunity to consult on reforms to expedite the construction of essential farm infrastructure, such as buildings, barns and other facilities necessary for boosting food production, while also improving environmental sustainability. As the Minister for Food Security and Rural Affairs, I am absolutely committed to helping smaller abattoirs to succeed and to take advantage of the opportunities available to them by continuing to support the meat industry where and when I can. To support employment in the meat processing sector—a point raised by several Members—the Government are taking firm action to address the challenges we have identified through our engagement with that sector. We are reforming the apprenticeships offer into a new growth and skills offer, which will provide greater flexibility to employers and learners and will align with the industrial strategy. That will include shorter-duration apprenticeships and new foundation apprenticeships for young people in targeted, growing sectors. That will help more people to learn high quality skills at work and will fuel innovation in businesses across the country. The Government will set out our plans for further steps and detailed information on the growth and skills offer in due course, based on the findings of Skills England’s engagement over the autumn with key partners, including employers and training providers. As part of our commitment to strengthening vital sectors across the agricultural and food industries, we have also announced measures to provide stability to farmers and workers in the UK’s poultry sector. In February, the Government announced a five-year extension to the seasonal worker visa until the end of 2030, ensuring a reliable pipeline of workers for farms. As in previous years, 2,000 visas have been allocated specifically for seasonal poultry workers, and annual quota reviews will balance farm support with reducing reliance on seasonal migrant labour, helping farms to grow with stability and confidence. I turn to funding. Despite the ongoing financial challenges posed by a very tight public purse, we have committed £5 billion to the farming budget over two years, with the largest ever investment directed at sustainable food production and nature recovery. Capital investment will not solve every problem, but we do plan to simplify and rationalise grant funding to ensure that grants deliver the best benefit for food security and nature. We are currently working to agree our capital settlement as part of the spending review and, once it is agreed, we will consider how best to use capital to achieve outcomes. In closing, I thank the meat processing sector and smaller abattoirs specifically for their continued commitment to supplying the nation with healthy and wholesome food. The Government stand with them, and I look forward to continuing to work with the sector to build a stronger and more secure future for British agriculture and food production.

16:03:00

I thank Members for their contributions, which are much appreciated. I heard very clearly their passion for supporting farmers in their areas. They made it abundantly clear that small and local abattoirs form a crucial part of local food infrastructure, but they need support from the Government. Those abattoirs are severely at risk, so it falls on DEFRA to define where they sit in plans for the future of farming and to set out how the Government will ensure that we have a local network of abattoirs across the country. I thank the Minister for his words and for the nuggets of good news. I hope that we will soon have further clarity on that funding and on what the landscape will look like, because we know that agriculture will face only more shocks. We have to tackle them now to ensure that farming in the future is resilient, with the infrastructure to support farmers so that they can secure their businesses. I hope that the Minister sees the opportunity to work with the small abattoir sector to safeguard its future and to ensure that local food infrastructure is as resilient as possible. Rural communities across the country—including farmers, retailers, butchers, pubs, restaurants and hotels—rely on small abattoirs, so we must make sure that they are there to serve customers and to feed the nation. Question put and agreed to. Resolved, That this House has considered the potential merits of Government support for small abattoirs.

16:06:00