Fury as Defra reveals £358m underspend over three years

The NFU has accused Defra of delivering a “kick in the teeth” to farmers, as it emerged on Tuesday (10 September) that the department has failed to deliver some £130m of funding in the last financial year.

The shortfall was revealed when Defra published its Farming and Countryside Programme (FCP) annual report.

This also confirmed an underspend in the budget of £103m in 2022-23 and £125m in 2021-22.

See also: Defra set to surrender £100m ELM underspend to Treasury

NFU president Tom Bradshaw described the £358m underspend as a “kick in the teeth for farmers”.

He said it happened because the support schemes to replace the Basic Payment Scheme (BPS) have not been completed in time and “there are still many gaps and questions unanswered”.

Former prime minister Rishi Sunak had pledged that farmers would receive “every penny” of unspent agriculture budget, which would be rolled over into future years.

Farm leaders fear that the Treasury plans to raid Defra’s coffers and reclaim unspent budget to fund a £22bn “black hole” in public finances.

However, Defra farming minister Daniel Zeichner vowed: “The Labour government will restore confidence and stability to farmers to boost rural economic growth and strengthen our food security.”

Budget boost

The NFU has called on the Labour government to increase the UK agriculture budget to ensure the security of the nation’s food supply and to meet environmental goals.

The union’s plea was made on Wednesday 11 September – the 9th annual Back British Farming Day, which highlights the value of British agriculture to the UK economy and garners support from politicians, the public, and industry stakeholders.

British farmers are vital to the UK’s food and drink sector, which is the largest manufacturing sector in the country, valued at £148bn and employing more than four million people.

The NFU said the agriculture sector underpins much of the UK’s economic stability, making it essential for the government to support it adequately.

Multi-annual approach

It is urging Sir Keir Starmer’s Labour government to deliver a multi-annual UK-wide agriculture budget of £5.6bn (up from about £3.7bn) in the Budget announcement on 30 October.

This is considered as crucial to give farmers confidence to invest in sustainable practices, create jobs, and contribute to the nation’s food security.

The call is based on an independent report by Andersons, which found that an annual agriculture budget of about £4bn is needed to meet statutory environmental and climate goals in England, translating to a UK-wide requirement of £5.6bn.

Mr Bradshaw said Labour has consistently stated that “food security is national security”, including this pledge in its election manifesto.

He said Sir Keir’s government must now “seize the opportunity” and demonstrate its commitment to British farmers and growers with a strong budget for UK agriculture.