The news that Defra is one of four government departments facing budget cuts of 30% over the next four years might seem to only be a problem for farmers south of the border but that is not the case according to NFU Scotland’s Head of Policy, Jonnie Hall
“While the agricultural and animal health sectors in the UK focus on the scale and impact of budget cuts on Defra, of greater importance to Scotland may be the level of reduction in our total share of UK funding,” he said.
“From discussions with Scottish Government, there seems little doubt that the UK cuts will have a significant impact on Scotland’s pot. Given the Scottish Government’s stated commitments to priorities like health and education, savings will have to be found across a range of other policy areas.
“While direct support to farming (Pillar 1) is 100% funded through Europe, our rural development package (Pillar 2) is significantly co-financed by Scottish Government.”
Mr Hall further suggested it would be prudent to prepare for an announcement that brings significant reductions in spend available through the Scottish Rural Development Programme (SRDP).
“As has often been highlighted by NFU Scotland, Scotland’s existing Pillar 2 budget is already amongst the poorest in Europe. The new SRDP, since it opened earlier this year, is already stretched and managing any budget cuts will be extremely challenging,” he added.
A major priority is bound to be ensuring Scottish Government sticks firmly to the SNP’s manifesto commitment of maintaining the Less Favoured Areas Support Scheme budget.
Mr Hall said: “Given its vital importance to farming and crofting, underpinning their pivotal role to rural Scotland. We have to continue to direct funding into active farming and crofting businesses if we are to drive local economies and underpin rural communities.”
As for other elements of the SRDP, until we know the extent of any budget cuts, we cannot have an informed discussion on how best to manage a funding shortfall and how best to maximise the effectiveness of the remaining Scottish Government spend, he added.
“But, suffice to say, there may be trouble ahead,” said Mr Hall.