Despite its vast potential for economic growth, job creation, and environmental sustainability, businesses in the horticulture industry are facing mounting financial pressures, threatening their future. Ahead of the Chancellor’s much anticipated Spring Forecast, the Horticultural Trades Association (HTA) urges the government to provide immediate targeted support and policy changes to enable the sector to thrive.

HTA data reveals that the environmental horticulture sector contributes £38 billion annually to the UK economy and supports over 720,000 jobs. According to Oxford Economics, this value could rise to £51.2 billion by 2030 (Mission Green Growth report), however businesses are under severe financial strain following the Autumn Budget, which introduced measures that will cost HTA members an estimated £134 million, including changes to Agricultural Property Relief and Business Property Relief, alongside increases in the National Living Wage and National Insurance contributions. Additional pressures from rising costs, weakened consumer confidence, trade barriers, proposed plant health fee increases, and extreme weather conditions further threaten the sector.

“The Autumn Budget delivered a triple whammy of financial pressures forcing many horticulture businesses to make tough decisions about their future. The rise in the minimum wage for the third consecutive year, combined with National Insurance changes and inheritance tax alterations, leaves our members with little room to manoeuvre. The margins are already tight, especially after a year of unpredictable weather. One of our members told me they face an additional £200,000 burden due to these combined changes. There is simply no more fat to cut. Businesses are being forced to rethink staffing, investment, and long-term resilience strategies. The Spring Forecast is an opportunity for the government to take action, ease these pressures, and ensure our sector can continue to grow, create jobs, and contribute to the UK’s green economy,” explained Fran Barnes, Chief Executive of the HTA.

The HTA is calling on the government to:

Develop a Green Growth Strategy: Establish a cross-government, industry-backed strategy to drive investment, innovation, and productivity in UK plant production and automation research.
Pause and review harmful tax changes: Reassess and consult on tax increases introduced in the Autumn Budget 2024, including changes to Agricultural Property Relief and Business Property Relief, to relieve financial pressures on businesses.
Invest in green skills and workforce development: Expand horticulture education and apprenticeships and implement a long-term seasonal workers scheme to address workforce shortages.
Secure a UK- EU plant health agreement: Streamline cross-border plant movements while maintaining high biosecurity standards to reduce unnecessary trade barriers.
Protect and expand green spaces: Embed green space standards in planning frameworks and ensure long-term funding for high-quality public parks and urban greening projects.
Strengthen water resilience : Invest in water infrastructure, such as reservoirs, and integrate environmental horticulture into regional water management strategies to ensure a secure water supply.
Accelerate the transition to peat-free growing: Provide funding, R&D support, and knowledge transfer to enable the horticulture sector to transition to peat-free growing, with targeted exemptions where no viable alternatives exist.
Expand green health initiatives: Embed green social prescribing in NHS pathways and fund community gardening projects to promote public health and wellbeing.

Beyond its economic impact, the HTA explains that environmental horticulture plays a critical role in public health and climate resilience. Urban green spaces, trees, and plants improve air quality, with urban vegetation reportedly save the NHS £800.5 million in avoided health costs in 2021. Strategic investment in the sector today will deliver significant long-term savings and benefits for communities across the UK, says the association.

The HTA is ready to work with the government to implement these urgent measures. Without action, businesses will continue to struggle, limiting their ability to invest, innovate, and contribute to the UK’s green economy.