HTA calls on Chancellor ahead of Spring Forecast as rising costs squeeze horticulture

25 February 2026

The Horticultural Trades Association (HTA) has written to the Chancellor of the Exchequer, Rt Hon Rachel Reeves MP, ahead of the Spring Forecast, calling for urgent action to support UK environmental horticulture. The letter sets out the mounting cost pressures affecting growers, retailers, landscapers and suppliers, alongside practical steps the government can take to restore confidence and unlock growth.

The HTA’s recent Business Barometer survey revealed that 54% of member businesses finished Q4 2025 behind their budgeted profit position. As a result, half of these businesses said they were slowing or cutting planned investment, signalling the significant strain being felt across the sector.

While garden centre sales finished 2025 9% ahead of 2024 and 10% ahead of 2023, businesses now face rising costs that require 10–15% sales growth just to maintain profit margins. Key drivers include:

• Increased staff costs, including National Minimum and Living Wage, and National Insurance contributions.
• Higher energy bills and operational costs, including post-Brexit supply chain impacts.
• Crime-related costs and regulatory uncertainty, particularly around EPR and Simpler Recycling.

On top of this already challenging position, our members across the whole of the gardening industry are set to face further cost pressures in the year ahead, with the Government stating that it expects the Extended Producer Responsibility scheme to raise around £1bn from across the wider economy, more than double the fees raised under the previous PRN system. Electricity Transmission Network Use of System (TNUoS) charges are also set to rise by over 60% in April 2026, with businesses in the UK facing substantial bill increases to fund major grid upgrades.

Fran Barnes, Chief Executive of the HTA, said:

“Environmental horticulture is ready to grow, but our member businesses urgently need stability and fair treatment. They are facing a perfect storm of rising wages, National Insurance increases, soaring energy costs, increased business rates, supply chain pressures and mounting regulatory uncertainty around EPR. Businesses are working harder than ever to stand still, and even strong sales growth is no longer enough to protect margins.

“The Spring Forecast is an opportunity for the Government to act decisively. By addressing energy relief, reforming business rates and aligning EPR policy, the Government can send a clear signal that it backs this £38 billion sector and the 722,000 jobs it supports. We are also encouraging our members to write to their MPs about the cost of doing business so the sector’s voice is heard at all levels of Government.”

Environmental horticulture has the potential to grow to contribute £51.2 billion to the UK economy by 2030, providing the right support is in place. Beyond its economic value, the sector plays a vital role in enhancing green spaces, cooling cities, improving biodiversity, reducing flood risk, removing air pollutants, and boosting mental and physical health, with office productivity gains of up to 15%.

HTA’s specific asks in the Spring Forecast:

• Extend energy cost relief to horticultural businesses and revise the SIC code for horticulture so that it correctly recognises energy-intensive production systems.
• Implement a more responsive, streamlined and investment-friendly business rates system.
• Align timelines on Extended Producer Responsibility (EPR) and Simpler Recycling policy, allowing non-black polypropylene plastic pots to be classed as green under the Government Recycling Assessment Methodology (RAM).