Welsh government welcomes removal of ring-fenced ag funding

Welsh cabinet secretary for rural affairs Huw Irranca-Davies has prompted anger after saying he “welcomed” the UK government’s removal of ring-fenced agriculture funding for the devolved nations.

As part of her recent Budget, chancellor Rachel Reeves redefined agricultural funding for Scotland, Wales and Northern Ireland, consolidating it within each region’s broader block grant using the Barnett formula, rather than maintaining separate, ring-fenced allocations.

This shift means agricultural support must compete with other priorities such as health and education, potentially impacting long-term funding and stability for farming.

See also: Budget 2024: Barnett formula switch risks devolved ag funding

Speaking in the Senedd on Wednesday (13 November), the rural affairs secretary said he “welcomed” the removal of ring-fenced funding, but added that Welsh government believed resources should be allocated across the UK on the basis of relative need.

Under the Barnett formula, funding is calculated based on population, rather than farm and rural characteristics.

The Farmers’ Union of Wales (FUW) has warned the Treasury’s decision to “Barnettise” the block grant could see Wales’ proportion of total UK agricultural funding fall drastically from 9.4% to about 5% – equivalent to a cut of about 40% in funding.

Undermining the industry

FUW president Ian Rickman said: “While the Welsh government will ultimately have the final word on the Welsh agriculture budget, ‘Barnettisation’, or any reduction in Wales’ agricultural funding by the Treasury, will further undermine the industry – and fail to reflect inflation and the plethora of public goods farmers are increasingly expected to deliver.”

Sam Kurtz, Conservative Member of the Senedd for Carmarthen West and South Pembrokeshire, told Farmers Weekly the rural affairs secretary had “said the quiet bit out loud” in his comments in the Senedd.

“By welcoming the removal of the ring-fencing, it opens up the possibility for this Welsh Labour government to use money allocated for agriculture for absolutely anything they want to,” he said.

“Labour at both ends of the M4 [are] doing their best to damage the agricultural industry. If any funds allocated to agriculture aren’t used to support the industry, then it’ll be nothing but a vindictive decision to further punish Wales’ farmers.”