Editor’s View: Labour must put its money where its mouth is
© Adobe Stock One of the more unappealing traits of those who hold power in government is their inclination to blame those who came before them for any difficulties they now face.
This was taken to the extreme by former prime minister Liz Truss who, on the night she lost her seat in South West Norfolk, blamed the country’s economic woes on the previous Labour government – 13 years earlier.
But the new incumbents in Westminster are showing similar tendencies, with both the prime minister and the chancellor pointing to a £22bn “black hole” in the public finances left by the outgoing Conservatives.
See also: Fury as Defra reveals £358m underspend over three years
About the author
While this is intended to pave the way for what will be a “tough” Autumn Budget, the claims of Tory financial mismanagement do stack up.
For evidence, look no further than the Farming and Countryside Programme report published this week by Defra, which reveals another £130m underspend on agriculture by the Conservatives in 2023-24.
Coming on top of the £103m they failed to get out the door in 2022-23 and the £125m gathering dust in 2021-22, that amounts to a colossal £358m stuck in Defra’s coffers over three years.
This is primarily money accumulated from cuts to the Basic Payment Scheme which the previous government failed to return to farmers.
No wonder the Treasury wants some of it back, to reallocate to other, more deserving departments.
The NFU is rightly furious, calling it a “kick in the teeth” for farmers. Labour ministers are also quick to condemn the situation – accusing the Conservatives of “breaking their promises to farmers”.
But their own performance since sweeping to power in July is less than spellbinding. The rollout of the “extended” SFI is more of a “stuttering” affair than a smooth transition, with Defra unwilling to share the latest figures.
We have also been asking for weeks what has happened to the £50m Farming Recovery Fund – intended for the repair of flood-damaged farmland.
Defra insists all eligible farmers have been “offered payment”, but it won’t say how much money has gone out of the door. Many farmers tell us they’ve not seen a penny.
And what of plans for the Treasury to claw back £100m, as reported by Farmers Weekly and raised by MPs in parliament? “Wait until the Budget,” we are told by Defra.
This obfuscation does nothing to instil confidence among farmers who continue to struggle with multiple challenges.
Yes, Labour is full of warm words about optimising Environmental Land Management schemes, boosting national food security, and smoothing the trade flow with the EU. But where is the evidence?
The industry needs a bigger budget, not a shrunken one, if it is to deliver on the government’s objectives.
It is time Labour put its money where its mouth is. At the very least, the £358m underspend must be retained by Defra, not handed back to an ever-demanding Treasury.