Ulster Unionist Agriculture spokesperson and Chair of the AERA Committee at Stormont Robbie Butler MLA, has criticised the Government's latest fuel package as "smoke and mirrors" for farmers, warning that the red diesel duty cut fails to reflect the reality of modern farming or the growing pressure on household food bills.

While welcoming any attempt to ease rising costs, Mr Butler said the announcement ignores the fact that many day-to-day farming activities no longer qualify for red diesel under current HMRC rules.

"On paper this looks like support for agriculture, but the reality on farms is very different," he said.

"Modern farm businesses rely on diversification, contracting and transport work just to survive, yet much of that activity must now use fully taxed white diesel. That means many Northern Ireland farmers simply will not feel the benefit being claimed by the Government."

Mr Butler said that, instead of simply tinkering with duty thresholds, the UK Government should examine the option of temporarily extending permitted red diesel usage during the current fuel and energy crisis.

"A time-limited extension of red diesel eligibility for essential rural and food production activity would deliver immediate, practical relief to farmers, contractors and the wider agri-food supply chain," he said.

"At present, farmers can use red diesel in one field but face restrictions the moment work crosses into transport, contracting or diversified business activity. Those rules no longer reflect how modern agriculture operates."

He warned that soaring fuel, transport and electricity costs do not stop at the farm gate and will ultimately feed directly into supermarket prices.

Mr Butler added: "This is not just about farmers, it is about protecting food affordability for families already struggling with the cost of living.

"If Government gets this wrong, the result will be higher production costs, higher prices on shelves and more pressure on households who already have little enough left at the end of the week. Supporting local food producers is part of protecting consumers too."

Mr Butler concluded by questioning why struggling rural businesses must wait until mid-June for the reduction to take effect, during one of the busiest periods of the farming calendar.

He called on the Treasury to urgently review restrictive HMRC guidance and ensure support reaches the areas of the rural economy under the greatest pressure.