Defra reveals significant underspend of £358m over three years



The National Farmers’ Union (NFU) has criticized Defra for failing to distribute around £130m in funding to farmers, calling it a setback for the agriculture sector. This shortfall was disclosed in Defra’s annual report on the Farming and Countryside Programme (FCP), which also highlighted underspends of £103m in 2022-23 and £125m in 2021-22. NFU president Tom Bradshaw expressed disappointment over the £358m total underspend, attributing it to delays in implementing support schemes to replace the Basic Payment Scheme (BPS). Despite former prime minister Rishi Sunak’s promise that unspent agriculture budget would be carried over into future years, there are concerns that the Treasury may reclaim these funds to address a financial shortfall. Defra farming minister Daniel Zeichner assured that the Labour government is committed to supporting farmers and enhancing food security.

On the annual Back British Farming Day, the NFU urged the Labour government to boost the UK agriculture budget to safeguard the nation’s food supply and achieve environmental objectives. Emphasizing the significance of British farmers to the country’s economy, the union stressed the need for adequate government support. The NFU called for a multi-annual UK-wide agriculture budget increase to £5.6bn, citing a report by Andersons that estimates £4bn annually is necessary to fulfill environmental and climate targets in England. Mr. Bradshaw highlighted Labour’s acknowledgment of the importance of food security and urged the government to prioritize British farmers by allocating a strong budget for agriculture in the upcoming Budget announcement.



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