Soaring energy costs have emerged as the biggest food security concern among UK food and agribusinesses, as new research reveals mounting pressure on the sector following a widely criticised autumn budget.
Energy costs accounted for 21% of food security concerns selected by respondents, followed by weather events and access to water at 19%, supply chain logistics at 13% and workforce pressures at 12%.
The findings, published in law firm Mills & Reeve's Food and Agribusiness Outlook 2026, highlight how rising costs and regulatory demands are influencing investment, business confidence and long-term planning.
The research comes after the government's October budget faced criticism from farming organisations over its failure to provide greater support for domestic food production.
NFU president Tom Bradshaw described the Budget as a major missed opportunity, arguing that ministers had failed to deliver on their commitment to treat food security as national security.
"It has failed to act and has left farmers feeling abandoned," he said.
The criticism followed an open letter signed by around 180 food sector experts, academics and business leaders, urging the government to strengthen Britain's food system against future disruptions.
Although the chancellor announced an extension to reduced red diesel duty and temporary tariff suspensions on fertilisers and selected food imports, farming representatives warned that the measures offered limited financial relief.
The budget also left reforms to Agricultural Property Relief and Business Property Relief unchanged, despite continuing concerns about their impact on family farm succession.
Mills & Reeve's research found that 70% of food and agribusiness respondents were actively taking steps to plan for succession in the ownership or control of their businesses.
Among those undertaking succession planning, 44% identified tax and estate planning as the leading motivation.
The findings underline how uncertainty over taxation and future business ownership is influencing decisions across the agricultural sector.
Meanwhile, mounting financial pressures are prompting businesses to reassess investment priorities, with greater emphasis on productivity, efficiency and commercial returns.
Technology is becoming an increasingly important consideration, particularly as businesses explore ways to reduce operating costs.
Cost savings, including improvements in scale and efficiency, accounted for 64% of the primary drivers of artificial intelligence adoption selected by respondents.
Separately, 36% of businesses surveyed expected agricultural technology to result in workforce reductions within the next one to five years.
However, these figures reflect anticipated changes rather than job losses that have already occurred.
Craig Hodgson, partner and co-leader of the food and agribusiness sector group at Mills & Reeve, said rising energy costs, environmental pressures and supply chain disruption were affecting confidence throughout the industry.
He said businesses were responding by making more selective investment decisions, exploring technological improvements and planning for future ownership changes.
"Together, these actions point to a sector focused on building resilience while preserving flexibility for the future," he said.
The findings underline the mounting challenges facing Britain's food producers, with rising costs and tax uncertainty increasingly shaping investment, succession and workforce decisions.
As concerns over national food security intensify, the research highlights the pressures facing businesses seeking to remain competitive while preparing for future economic and supply chain disruption.
