Defra underspent ag budget by £358m, new report confirms
11th September 2024
The underspend of the agriculture budget over three years has been called a “kick in the teeth” for farmers and growers.
After ongoing concerns about underspending of the agriculture budget, a new report has confirmed the figure to be £358 million over three years.
NFU president Tom Bradshaw called it a “kick in the teeth” to farmers and growers who have faced years of uncertainty and loss of income.
The Farming and Countryside Programme annual report revealed underspending of £130 million in 2023/24, £103 million in 2022/23, and £125 million in 2021/22.
Schemes not completed in time
“Let’s be clear, this underspend hasn’t happened because the investment isn’t needed,” Mr Bradshaw said.
“It’s happened because the schemes to replace the Basic Payment Scheme (BPS) have not been completed in time and there are still many gaps and questions unanswered.”
Despite flagging problems with the ELM schemes from day one, and despite improvements, there is still a big gap in spending as money saved from BPS reductions has “sat gathering dust”, he added.
The NFU said it had called for new schemes to be in place before reductions in BPS began to avoid funding being left unspent at a time when farmers needed it most.
READ MORE: OFC: Defra secretary unveils changes to ELM scheme
READ MORE: What does a Labour government mean for farming?
Calls to carry forward funding
It also called for reductions in BPS to be paused a year ago when there were further issues with the rollout of the new schemes.
“It wasn’t, and yet farmers and growers continued to face record inflation levels and devastating weather events. We’re now seeing the consequences as confidence in the sector has collapsed,” Mr Bradshaw continued.
Recent research has shown upland businesses have lost an average of 37% of their support payments under the 2023 scheme options, despite the public goods they deliver for the nation.
The NFU is asking the government to carry forward unspent funding into future years.
Tories “broke promises to farmers”
New farming minister Daniel Zeichner has criticised the Conservative government for the underspend, saying “time and time again” they “broke their promises to farmers”.
He added: “They sold them out in dodgy trade deals and then failed to pay them the funds they were promised.
“The Labour government will restore confidence and stability to farmers to boost rural economic growth and strengthen our food security.”
The government has set out a ‘new deal’ for farmers to boost food security and drive economic growth. It includes:
- Optimising Environmental Land Management schemes so they produce the right outcomes for all farmers – while delivering food security and nature recovery in a just and equitable way
- Seeking a new veterinary agreement with the European Union to cut red tape at our borders and get British food exports moving again
- Protecting farmers from being undercut by low welfare and low standards in trade deals
- Using the government’s purchasing power to back British produce
- Setting up a new British Infrastructure Council to steer private investment in rural areas including broadband rollout in our rural communities
- Speeding up the building of flood defences and natural flood management schemes, including through a new flood resilience taskforce to protect our rural homes and farms
- Introducing a land-use framework which balances long-term food security and nature recovery.
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