Editor’s View: Little prospect of bigger budget at Defra
© Adobe Stock What do the NFU, Country Land and Business Association, RSPB, National Trust and the Wildlife Trusts have in common?
No, it’s not that they represent more than 50% of the market for sensible fleece-lined sleeveless outerwear.
It’s that they have all called for various increases in the Defra budget for England after the general election, from the current £2.4bn to about £4bn.
See also: Budget measures open some tax doors but close others to farmers
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On the face of it, that is a potent selection of rural groups that represent a big chunk of the rural vote who should get a hearing – particularly if the groups started collaborating.
Yet it will take nothing short of a miracle to see a pledge to that effect in either the forthcoming Tory or Labour manifestos.
Last week’s budget firmly put the emphasis on tax cuts, meaning that there is set to be a squeeze on spending at non-protected government departments – mostly outside of the NHS, defence and foreign office.
That will be the situation that Labour inherits, were it to win this year’s general election, and it is giving no sign that it will turn the spending taps on.
What does this mean for farmers?
Well, in England, as area payments continue to be phased out there should still be plenty of money in the short and medium term for Sustainable Farming Incentive, Countryside Stewardship and Landscape Recovery.
Yet as lobbyists have noted, a pot of money with diminishing efficacy (once inflation has been factored in) will constrain Defra’s ability to meet all of its environmental objectives at a price farmers are willing to deliver them.
The Bank of England’s calculator shows you would need £3.1bn today to have the same buying power that £2.4bn had in 2016.
It also increases the likelihood that the devolved nations do not get a funding uplift either.
It was not all bad news from the chancellor, though, as the long-awaited clarification on inheritance tax status of land that is in environmental schemes has arrived, with agricultural property relief being maintained in many circumstances.
It’s no surprise that a measure that doesn’t cost money finally got the nod.
This is a lesson for anyone wishing to get something done at the moment – if it doesn’t cost anything, then you’re in with a fighting chance.
A final note of cheer… I visited the House of Lords this week to see John Fuller, chairman of liquid fertiliser importer Brineflow, join the red benches and become Lord Fuller.
While there, it was pleasing to hear from an influential parliamentarian how concerned they are about the impact the imposition of universal credit is having on certain farmers.
To those of you campaigning on this, keep engaging.