Lord Katz (Lab)
I thank the right reverend Prelate for his question. He is right to say that the Government are committed to farming, food security and nature recovery through a number of different environmental and land management schemes, including the sustainable farming incentive. He will be aware that the current scheme was closed last March, but it is fair to say that all agreements agreed to under previous iterations of the scheme are still live. It pays farmers to adopt and maintain sustainable farming practices that can protect and enhance the natural environment, alongside food production, and support farm productivity. We are determined to get this right. It is worth noting that only 40,000 of a potential 100,000 farming businesses took up the scheme under previous iterations, so it is really important that we get it right. We are determined to ensure that every farmer takes a look at the new scheme when we do, and we will obviously keep the House updated as to its publication.
My Lords, does the noble Lord share my concern that, on the figures I have, 6,365 agriculture businesses have closed in the last year? That is the highest number of businesses to close in farming since 2017. Will he bring forward SFI to new entrants as a matter of urgent priority? Payments under the basic farm payment scheme in England are going down much faster than anyone envisaged, and this is causing real hardship for those who farm in the hills and dales of northern England.
Lord Katz (Lab)
Of course, the Government share concern when any farming business closes, which is why we are backing farmers to be more profitable and unlocking the full potential of the rural economy, making sure there is business stability and clarity so that they can invest with confidence. That is why we very much welcome the work that the noble Baroness, Lady Batters, did on profitability. We will align that with other strategies, such as the land use strategy, as we unveil this once-in-a-generation farming road map that should cover the next 25 years of agriculture. It is important to understand that over half of England’s farmland, more than 50,000 farm businesses, are already benefiting from our investment in environmental land management schemes, not just SFI but the Countryside Stewardship and landscape recovery schemes. It is important that we get the balance right between restoring nature and having productive farming.
Lord Katz (Lab)
I agree completely with the noble Lord. Efficient, precise and forensic regulation is needed in this sector. That came across very clearly in the report of the Independent Water Commission led by Sir Jon Cunliffe. In response to his report, we have already committed to establishing a single regulator for water and to introduce a regional element within it so that, working with local communities, local businesses and water companies, the needs of an area, whether agriculture or the built environment, are taken account of in determining water company action.
My Lords, the Cunliffe review does indeed refer to the need for a single regulator. It concludes in recommendation 16 that this regulator
“should combine the functions of Ofwat, DWI, and water functions from the EA and NE”.
Natural England is being given a very big role in the Planning and Infrastructure Bill and I just wonder how this fits with what the Government are proposing if they fulfil the recommendations of the Cunliffe review. Will we have to rewrite the planning Bill when the next water Bill comes along?
Lord Katz (Lab)
I thank the noble Baroness for her question and indeed her interest in this area and the Planning and Infrastructure Bill. I do not think anybody in your Lordships’ House would really like us to go through the pain of the Planning and Infrastructure Bill again. That is not what we are going to do. It will be helpful for the House to set out that we have already announced five commitments in response to the Cunliffe review and Sir Jon’s report. We will be publishing a White Paper and hope to have a water reform Bill in the next Parliament.