Philip Hammond's cash pledge earns cautious welcome
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The pledge covers all of the UK including the Glastir scheme in Wales, countryside management agreements in Northern Ireland and agri-environment agreements in Scotland.
“This is extremely welcome news to farmers,” says Jeremy Moody, secretary and adviser to the CAAV as, he claimed, it cleared up one of the many areas of uncertainty brought about by Brexit.
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Hide Ad“Having such a commitment from the government provides further confidence to the industry, following the Treasury’s announcement in August that it would guarantee direct payments until 2020, covering 2019 claims,” Moody added.
“Farmers are facing some tough times at the moment, with commodity prices under intense pressure, so having these assurances is extremely welcome.”
However, there was no clarity on one of Scotland’s main support schemes, the less favoured area support scheme (LFASS), with Moody pointing out: “The LFASS in Scotland is not a multi-annual commitment and is to be replaced in 2018 to comply with EU demands, so the future for Scotland’s rural development schemes remains uncertain.”
This uncertainty was picked up by Scottish Government finance secretary Derek Mackay, who described the Chancellor’s statement as begging more questions than providing answers on longer-term funding. This uncertainty could have a devastating impact on farmers, fishermen and communities across Scotland who heavily rely on this investment and will continue to be unable to plan beyond the point that the UK is expected to leave the EU, he said.
“I am also disappointed that the UK government has taken so long to come to this position, with months of indecision impacting the Scottish economy and putting significant investment and jobs at risk.
“We will continue to engage with the Treasury to get further clarity on funding and provide what reassurances we can to beneficiaries and I will be raising this issue with the Chief Secretary when I meet him later this month.
“However we are clear, the best way to guarantee the jobs, investment, services and projects all over the country which depend on this funding beyond 2020 is by maintaining Scotland’s relationship with the EU and our place in the single market.”