Thursday, 2 January 2020
No cut to subsidy budget in 2020, Treasury confirms
The total budget
for area-based subsidies will be the same in 2020 as it was this year, the
Treasury has confirmed today, with £2.8bn support pledged. This will be the
first payment funded in full by UK taxpayers following the UK’s exit from the Common
Agricultural Policy. This statement is in line with pledges made during the Dec
’19 election, which stated that the annual budget for agriculture will be
matched to the current budget through every year of the parliamentary term.
The exact payment rates
a hectare would be decided later in the year by Defra and the devolved
administrations, according to a government spokesperson.
Each part of the UK will set its own level of Direct Payments for 2020 under existing EU rules which enable up to 15% of the Direct Payments budget to be used for rural development.
Defra secretary, said: “Outside the EU we will have a simpler, fairer funding
system – one that rewards farmers for enhancing our environment and
safeguarding our high animal welfare standards.
“We are committed
to making sure our rural communities feel the benefits of Brexit and will
ensure our farmers get a better deal.”
Phasing out of direct payments
It is predicted that phasing out of direct payments will not begin in the next 14 months, in England, as a requirement of the Agriculture Bill, previously delayed, to be passed is causing hold ups. In Wales, the government have already stated that payments will not be phased out until at least 2022.
If you would like
to speak to one of our team in regard to your present subsidies and the likely
changes the future will bring, in the first instance, please call your local H&H
Atherstone – 01827 718021
Ashby – 01530 877977
Rugby – 01788
Towcester – 01327 397979