Business and Policy June 2026 – Policy Brief

Red Diesel Duty To Be Cut By One-Third 

The UK government has announced a temporary cut to red diesel fuel duty to help farmers and other industries cope with high fuel costs. Red diesel duty will fall from 10.18p/litre to 6.48p/litre, the lowest rate in over 20 years. The reduced rate starts on 15 June and lasts until the end of 2026. The Treasury has also extended the 5p/litre cut on road fuel duty to the end of year and granted road hauliers a 12 month holiday on vehicle excise duty (VED). 

Scottish Upland Sheep Support Scheme (SUSSS) 2025 payments 

The Scottish Upland Sheep Support Scheme (SUSSS) individual animal payment rate for 2025 has been calculated and set at £64.80 per animal. Processing of 2025 payments has begun with payments due to start reaching bank accounts from 26 May 2026. 

New Strategy Launched To Protect Pig Sector Against Swine Fever 

Plans to strengthen protections for pig farmers and the industry have been stepped up (from 14 May 2026) as the government introduces new measures in the event of a swine fever outbreak. Although African Swine Fever has never been detected in the UK, the revised strategy is intended to improve preparedness and reduce disruption if an outbreak occurs. 

A central feature of the update is the introduction of additional restricted zones (Restricted Zones 1, 2 and 3), which can be deployed depending on circumstances. This will help farmers avoid blanket movement restrictions on live pigs and pork products, reducing pressures such as overcrowding and enabling day-to-day operations to continue more smoothly. The strategy, developed jointly with the Scottish and Welsh governments, also strengthens surveillance and testing measures. 

Gillian Martin Appointed Scotland’s New Rural Affairs Secretary  

John Swinney has appointed Gillian Martin as Scotland’s new cabinet secretary for climate action and rural affairs, replacing Mairi Gougeon after her decision to step back from frontline politics before the 2026 Scottish Parliament election. 

The appointment is part of a wider Scottish Government reshuffle following the SNP’s fifth consecutive election victory at Holyrood. Ms Martin will lead a merged portfolio combining climate policy with rural affairs, agriculture and island economies, giving her a major role in managing Scotland’s agricultural transition. This includes overseeing the rollout of the government’s four-tier farm support framework, which aims to tie future agricultural payments more closely to climate action, biodiversity and food production outcomes. 

Jim Fairlie has retained his role as minister for agriculture while also taking on responsibility for marine and island matters. 

Food Tariff Reductions 

Chancellor Rachel Reeves is planning to reduce tariffs on around 100 supermarket items to reduce cost pressures on consumers. The aim is to protect those products that are not seen as part of mainstream agricultural production in Britain. The list contains items such as tropical and dried fruits, biscuits, chocolates and olive oil. The government will shortly launch a consultation covering more items.   

 

Relevant Scottish Government Publications and Consultations 

Publications	Publication Date
Agricultural profit estimates and milk production statistics	30 April 2026
Bluetongue – latest situation	18 May 2026

Consultations	Closing Date
Scotland’s Peatland Standard – Consultation draft	12pm on 28 August 2026

 

Key Dates 

Date	Actions
18 – 22 June 2026	Planned system downtime for AECS (Agri-Environment Climate Scheme) application process, normal service resumes from 23 June 2026.
29 June 2026	The AECS application window has been extended to midnight on 29 June 2026.
1 June – 9 September 2026	Bluetongue movement restrictions - from 1 June 2026

 

Alastair Beattie, alastair.beattie@sac.co.uk