A hydraulic valve including: a spool having first and second ends (20, 22), and first and second annular grooves (40, 42) formed in the surface of the spool, axially spaced from the first and second ends (20, 22) respectively, a valve body having first and second ends (14, 16), a bore extending between them, and first and second drain passages (44, 46) opening to the bore, the spool being disposed in the bore and biased in a neutral position, and defining first and second end portions (30, 32) of the bore at the first and second ends of the spool respectively, characterized in that, the first and second annular grooves (40, 42) have a width that when the spool is in the neutral position, the first annular groove is open to the first drain passage and also defines an opening to the first end portion of the bore and so connects the first drain passage to the first end portion of the bore for flow of fluid, and the second annular groove is open to the second drain passage and also defines an opening to the second end portion of the bore and so connects the second drain passage to the second end portion of the bore for flow of fluid, and in which the spool is axially movable relative to the valve body by fluid acting on one of the first and second ends (20, 22) of the spool, to a position in which either the first annular groove is not in fluid communication with the first end portion of the bore and the second annular groove is not in fluid communication with the second drain passage or the first annular groove is not in fluid communication with the first drain passage and the second annular groove is not in fluid communication with the second end portion of the bore so that flow of fluid from the first and second end portions (30, 32) of the bore to the first and second drain passages is blocked. a spool having first and second ends (20, 22), and first and second annular grooves (40, 42) formed in the surface of the spool, axially spaced from the first and second ends (20, 22) respectively, a valve body having first and second ends (14, 16), a bore extending between them, and first and second drain passages (44, 46) opening to the bore, the spool being disposed in the bore and biased in a neutral position, and defining first and second end portions (30, 32) of the bore at the first and second ends of the spool respectively, characterized in that, the first and second annular grooves (40, 42) have a width that when the spool is in the neutral position, the first annular groove is open to the first drain passage and also defines an opening to the first end portion of the bore and so connects the first drain passage to the first end portion of the bore for flow of fluid, and the second annular groove is open to the second drain passage and also defines an opening to the second end portion of the bore and so connects the second drain passage to the second end portion of the bore for flow of fluid, and in which the spool is axially movable relative to the valve body by fluid acting on one of the first and second ends (20, 22) of the spool, to a position in which either the first annular groove is not in fluid communication with the first end portion of the bore and the second annular groove is not in fluid communication with the second drain passage or the first annular groove is not in fluid communication with the first drain passage and the second annular groove is not in fluid communication with the second end portion of the bore so that flow of fluid from the first and second end portions (30, 32) of the bore to the first and second drain passages is blocked.