NFU Scotland demands immediate reinstatement of ‘lost’ £61m

Scottish farm leaders have expressed their dismay at sudden cuts to their nations’ agricultural budgets, demanding an immediate reinstatement of £61m of “lost” funding.

NFU Scotland (NFUS) this week wrote to deputy first minister and finance minister Shona Robison, following her surprise announcement last week that a further £28m was to be shaved from the 2023-24 budget as part of a wider “reprioritisation” of government spending due to inflationary pressures.

See also: Strong public backing for farm support spending in Wales

This is on top of some £33m which was already deferred from the 2022-23 budget – money allocated to Scotland as part of the 2019 Bew Review.

“Scotland’s farmers and crofters are angry and frustrated that, for the second consecutive year, vital funds have been deferred from the agricultural budget,” said NFUS president Martin Kennedy in his letter.

“In total, some £61m of agricultural funding allocated to the Scottish government by the UK Treasury has now been ‘withdrawn’.

“This funding was formally ringfenced by the UK government for Scottish government to spend on agricultural support and rural development.”

Pressure

Mr Kennedy said he recognised the financial pressure the Scottish government is under, but feared if the money was not allocated this year, it would be lost.

The union has suggested that the full amount be paid as a supplement to the £384m Basic Payment Scheme and Greening budget – a 16% uplift that would “provide a significant cash injection to agricultural businesses at a time when input costs are undermining business viability”.

The funding issue has, however, been taken up by Scotland’s rural affairs secretary Mairi Gougeon, who earlier this week wrote to Defra secretary Steve Barclay pointing out that, in the EU, Scotland enjoyed nearly £1bn a year to support farmers and rural communities.

“It would be a great start to our working relationship if you might commit at the earliest possible opportunity that the UK government will fully replace EU funds in order to minimise the disruption to rural industries,” she wrote.