He writes:
On Saturday 13 August, Chancellor Phillip Hammond announced that the Treasury will guarantee European Union funded projects signed before this year’s Autumn Statement, even when those projects continue beyond the UK’s exit from the European Union. This included the guarantee of Pillar 1 direct payments until 2020.
What does this mean for payments made under Pillar 2 – Rural Development? The Treasury has stated it will fund all those applications signed before the Autumn Statement including those projects that continue beyond Brexit. We currently don’t know when the Autumn Statement will be – but as a guide, for the past four years it has either been at the end of November or the beginning of December.
Does this mean that applications made under RDPE that are not processed in time, for example for Countryside Stewardship or LEADER, will be excluded from this guarantee?
Not necessarily. The NFU attended a RDPE working group meeting with Defra last week. Defra see this ‘deadline’ as a means of encouraging applications to be made promptly and they cannot see why submitted applications would be rejected if not agreed and signed by the Autumn Statement.
Given the continuing delays with application processing, caused by long running IT problems, and the recent stall prior to the Treasury’s announcement – this is an encouraging move by the Department. Defra need to work through the details with Treasury to secure this flexibility. As a result, we would urge prompt applications for Countryside Stewardship and Leader.
So what about funding for Rural Development in future years? HM Treasury have confirmed that they will be assessing the context of agri-environment funding and they will announce this prior to the Autumn Statement. While this does seem somewhat vague, Defra have at least hinted that they do see some form of funding put in place for the coming years prior to Brexit.
The NFU is beginning its biggest member consultation ever this week, with over 50 meetings to be held across the country between now and 14 September. This is your opportunity, as members, to put your views across to the NFU officeholders and staff as to what form you would like to see agricultural policy develop in the future.
Please visit the NFU’s consultation page to find out more about meetings near you and how you can participate.
