(5 days, 20 hours ago)
Lords ChamberThe new SFIs offer some reduced payment rates per acre and remove management payments—winter bird food falls by 24% and herbal leys by 41%. SFIs require substantial expenditure by the recipients in order to claim these payments, and reducing payment rates dramatically reduces the potential for profit and the incentive element of the SFIs. To the point from the noble Lord, Lord Carrington, costs are going up for farmers. Could the Minister tell us what work has been done by the Government to ensure that these are adequate payment rates? Will they commit that, if take-up of these schemes falls below budget, the full farming budget will be used elsewhere to support the farming sector directly? I refer the House to my interest as a farmer in receipt of SFI payments.
The Farming Minister has spent a long time looking at the different options to try to target the types of farm and types of productivity that she wants to increase. The noble Lord is absolutely correct that the management payment has been removed. That was done to increase the amount of budget that would be available for new agreements. We want as many farmers as possible to be able to benefit from SFI funding this year, which is why that payment was taken out. A number of actions have come out but, in some areas, agreements have seen the payments increase for certain activities—for example, on moorlands. Some areas have gained and some have not, but it is about getting the balance towards where the Government want to see things changing.
(1 week, 4 days ago)
Lords ChamberAs I said, we will be taking a precautionary principle approach. The noble Baroness talked about school uniforms; it is important that we make sure that children are protected as much as possible. We recognise the concerns in this area. Her point about mattresses is also important. The textiles industry is already moving away from PFAS voluntarily, but we clearly need to do more. I assure noble Lords that the PFAS plan is the starting point and the platform for moving forward in this area. This is not the limit of our ambition.
My Lords, we are concerned that the plan promises high-level actions without clear timelines for phase-outs or mechanisms for delivery. In addition, companies need sufficient time to explore safe alternatives and for the supply chain to adapt accordingly. What are the Government doing to support the private sector in innovating viable alternatives to PFAS?
The simple answer is that we are carrying out a lot of stakeholder engagement. We are working very closely with industry and business. As I said, the textiles industry is moving that way voluntarily. We need to work with other sections of industry in the private sector to encourage them to do so, because the more we can do now voluntarily, the better, while we bring in our more detailed plans.
(1 week, 6 days ago)
Lords ChamberMy noble friend is absolutely right that working with the European Union around sanitary and phytosanitary issues regarding veterinary medicines is very important and something that we are clearly focused on. I also thank her for her role in the Veterinary Medicines Working Group. The whole group came together to do the best we could to ensure that veterinary medicines were still available in Northern Ireland after the end of the grace period at the end of last year. We will continue to work together on how we move forward within the EU reset.
My Lords, the Government have said that they do not expect the EU–Mercosur trade deal to impact UK food production, supply or security, or indeed UK imports of agricultural products from the bloc. However, the British Agriculture Bureau has taken a market-wide view and has warned that the deal risks increasing competition on the EU market, potentially displacing products on to the UK market. What is the Minister’s assessment of this? I declare my interest as a dairy and beef farmer.
It is important to say that the UK values its relationship with the Mercosur countries and we are committed to identifying ways to continue to strengthen our trade relations. We are not currently negotiating a free trade agreement with Mercosur, but our trade strategy is clear that we will consider new free trade agreements where there is a comprehensive deal that makes sense at the time.
(2 weeks ago)
Lords ChamberMy noble friend asks a really important question. We announced a review of the UK’s approach to responsible business conduct as part of the UK trade strategy, and that is exploring the UK’s effectiveness in preventing human rights harms, labour rights harms and environmental harms in supply chains. That is how we are looking to support businesses and give them access to the kind of information my noble friend talks about.
My Lords, while it is right to take steps to protect forests overseas, I point out that Brazil and Indonesia, for example, have 50% forest cover, versus only 13% here. These countries already protect their forests through the Brazilian forest code and the Indonesian timber legality assurance scheme. Can we not do more to make the world greener in our own country by increasing our paltry 16.5% forest cover target? I declare my interest as an investor in SLC Agricola and Anglo Eastern Plantations, and as a forest developer.
We have ambitious tree-planting proposals, including planting three new national forests—one has already begun and two are well on the way—because it is important that we increase tree coverage. We are also looking at how we can better protect the forests we already have, particularly our ancient woodlands. The environmental improvement plan the Government have recently published addresses many of those issues.
(3 weeks ago)
Lords ChamberAt least the noble Baroness thinks I sound good. The revised environmental improvement plan is designed to deliver everything the noble Baroness talked about. We are working very hard in Defra to ensure that it does.
My Lords, the Taskforce on Nature-related Financial Disclosures aims to bring nature into the core of business and financial decision-making, recognising that the health of our natural environment is crucial to the long-term health of our economy. What are His Majesty’s Government doing to accelerate adoption of TNFD reporting to incentivise better performance and thus encourage businesses to channel investment into nature recovery?
I thank the noble Lord for mentioning the TNFD, because it is very important. We are continuing to fund the Green Finance Institute to progress market capacity building and uptake through the TNFD UK consultation group. That is evolving to include a pilot programme on integrated nature transition plans. Fifteen businesses are currently already signed up to that. We are also in the process of onshoring the International Sustainability Standards Board’s general sustainability and climate disclosure standards in the UK. That will draw on the work of the TNFD. We are looking at its imminent work on nature standard-setting. Once that direction of travel is clear, it can inform our future paths on policy and regulation.
(1 month, 2 weeks ago)
Lords ChamberMy Lords, to follow my noble friend’s question, the Government have announced that water company fines will help fund environmental restoration, including 100,000 new trees. To put that in context, a block that size would be only 50 hectares and cost £200,000. That seems a token effort. Will the Minister commit to more ambitious targets for the use of these fines in environmental restoration and tree-planting? I refer the House to my interest in developing new forests.
The Government have very ambitious plans for tree-planting, including three national forests, one of which has already begun planting and two are progressing well, so we are very keen. We understand the impact that trees can have in mitigating both climate change and flooding. We absolutely want to work with farmers to ensure that we can help and support them to plant trees in order to support their ambitions.
(1 month, 2 weeks ago)
Lords ChamberI assure the noble Baroness that we talk regularly about the importance of this not just to the Treasury but to other departments.
My Lords, following on from the question from the noble Baroness, Lady Boycott, the Forestry Commission and the Woodland Trust have produced excellent research on the water-related benefits of tree planting, peatland restoration and rewetting wetlands. This demonstrates that reductions in peak flow rates during high rainfall events alleviate flood severity and that better water retention reduces drought severity and improves water quality. How will the Minister bring together the water companies, the insurance industry and infrastructure owners, as the beneficiaries of these nature-based solutions, to fund true catchment-scale investment not just in Yorkshire but all around our country? I declare my interest as a landowner.
As I mentioned in response to the earlier question, we know that natural flood management attracts contributions from partners, including private partners, and that is something we must do. As the noble Baroness has just said, flooding has a big impact on climate change. We are not going to solve this unless we bring everyone together—the Government, infrastructure developers, the private sector and so on.
(2 months ago)
Lords ChamberThe question from the noble Lord, Lord Trees, gives me the opportunity to mention the demonstration of life protocol for sheep and goats. I know that he is a very strong proponent of this. In fact, his support was instrumental in establishing the protocol, which is based on the New Zealand model. I am glad to confirm that the Government very much support this. The demonstration of life protocol provides assurance for Muslim consumers that the stunning of sheep and goats is compatible with halal slaughter requirements. The protocol protects the welfare of the animals involved while also supporting any opportunities for trade. The Food Standards Agency oversees the monitoring and enforcement of animal welfare in slaughterhouses, and it also supports the protocol. So the Government will consider ways they can encourage halal slaughterhouses to use this protocol.
My Lords, data from the Food Standards Agency revealed that in the last decade 27% of inspections of slaughterhouses permitted to perform religious non-stun slaughter concluded with a rating of improvement necessary or urgent improvement necessary. This compares with just 10% of all other establishments. Can the Minister clarify what the Government are doing to strengthen the enforcement of existing rules and standards? I refer the House to my registered interest as a livestock farmer.
(2 months, 1 week ago)
Grand CommitteeMy Lords, I thank the Environment and Climate Change Committee for its excellent work in producing this report. I thank its members for their contributions to this debate, as well as those who submitted valuable evidence to help assess ways in which we can reduce nitrogen pollution.
I am pleased to highlight that the 2023 data shows that we met our commitment to reduce annual emissions of nitrogen oxide by 55%, based on 2005 levels, under the Gothenburg protocol to the UNECE Convention on Long-range Transboundary Air Pollution.
Before I continue, I draw the Committee’s attention to my registered interests as a dairy and livestock farmer and as an investor in the soil-testing company Agricarbon and the nature finance companies Karner and Cecil.
This report’s recommendations affect a range of sectors, including agriculture, wastewater and transport, which are identified as the main contributors to nitrogen pollution in England. To take into account the holistic nature of this issue, we welcome the report’s recommendation for a cross-departmental, circular approach to nitrogen pollution; this will help deliver better outcomes for farmers, public health, nature, wildlife and the climate. We also agree that, at present, there is a lack of a clear policy direction from the Government to give businesses the certainty they need. We strongly endorse the report’s recommendation to simplify the regulatory system.
The Government’s response does not reject any of the report’s conclusions, but it does not fully agree with each of them. As Conservatives, we welcome the Government’s emphasis on the need for value for money and on streamlining different outputs where possible, such as by merging the recommended nitrogen strategy into the upcoming circular economy strategy for England. However, I express concern about the approach towards the agricultural sector in particular. Throughout their response to the report, the Government highlight their existing commitment to increase over three years funding for the Environment Agency to conduct farm inspections, with a target of 6,000 by 2029. Although we recognise that farms must adhere to the rules, we are concerned that this approach uses a stick rather than offering a carrot to hard-working farmers. The Government must ensure that these inspections are led by advice—for example, in increasing farmers’ awareness of the potential profitability benefits of regenerative farming practices; improving soil structure and fertility; and supporting yields while reducing reliance on manufactured fertiliser.
I pay tribute to my noble friend Lord Leicester for his pioneering role in regenerative farming in this country—perhaps the new Norfolk system. I should also draw attention to another of my interests: I am an investor in SLC Agrícola, a Brazilian farming company on 2 million acres that is, surprisingly, already regenerative. It is very much its own scale and access to technology, as well as the best advice, that enables it to be so.
When it comes to incentivising transitions to greener practices, we should recognise that farmers already use nitrogen fertiliser judiciously and that its use has fallen by 50% since 1990, as highlighted in the evidence given by Tom Bradshaw. Moreover, we are still awaiting details on the reformed sustainable farming incentive offer. Can the Minister confirm whether the Government are considering compensating farmers for reductions in fertiliser use through the SFIs that are yet to be published? Can she also indicate the role of existing and new market-based nutrient neutrality schemes in helping to meet these targets, while also providing financial incentives to land managers?
Industry contacts have informed me that the inclusion of support for nature-based solutions in the Water (Special Measures) Act has already had tangible benefits in activity levels. What further contribution to nitrogen reductions can be achieved through the implementation of the Cunliffe review? As the Minister has already been asked when we should expect the White Paper on water strategy, I will not ask again, but, if there is any more information on its timing and legislation on the back of that, it would be helpful.
The committee’s report rightly expresses concern about the low levels of understanding of farm regulations and identifies the
“lack of a trusted source”
for guidance amid the number of sources available. The Government have agreed with this conclusion, but their response goes on to list a number of sources: the catchment-sensitive farming scheme; a planned new nutrient management tool; the amended farming rules for water statutory guidance; and the catalogue of compliance that is currently under review. This demonstrates the existing problem. Will the Government commit to creating a simplified source for these schemes that ensures that farmers are made aware of their existence and are promptly kept updated of any changes?
To tackle ammonia emissions, the Government have said that they are considering an extension of environmental permitting for dairy and intensive beef farms, but concerns have recently been raised that some farmers may not be able to afford the investments necessary to remain compliant. We hold our farmers to higher standards than those against whom they are competing overseas; that carries greater costs, undermining competitiveness. What concrete actions are the Government planning to support profitability for our farmers while they bear these higher costs? Will the same environmental standards be extended to imported food products in order to protect British farmers from unfair competition?
Further, will the Environment Agency or its successors provide assistance to farmers and recommendations to planning officers in relation to planning applications for the infrastructure that is needed to reduce pollution? Too many necessary infrastructure developments are held up in the planning system; I have experience of this myself, I am afraid. As the noble Baroness, Lady Batters, highlighted in her excellent report, farming profitability is on its knees, and loading more regulation and cost on to the industry is potentially disastrous.
Later this year, the Government are due to announce a new farming road map for 2050. Could the Minister commit that they will listen to stakeholders in advance of policies being announced so that businesses can plan ahead effectively, as the first step of rebuilding trust? I am sure that, across this Committee, we want to help businesses to reduce, recycle and reuse, but the Government must allow for businesses’ financial models to be sustainable in the first place. By 2030, the Government hope to deliver a 73% reduction in nitrogen oxide emissions against a 2005 baseline level, and to reduce ammonia emissions by 16% by 2030 compared with 2005 levels. Will they commit to keeping this target under review to ensure that a focus on fixed end-point targets does not create viability issues for businesses or excessive costs for consumers?
We challenge the Government to seek to understand how private businesses work in the farming industry as well as in the wider economy. Businesses are being crippled by increasing costs of employment through national insurance contributions and minimum wages, through less flexibility in employment through the Employment Rights Act and through the unique challenges to the farming industry from the unreliability of environmental land management schemes under this Government. Creating greater investment and compliance burdens through regulation undermines our farming industry. Compliance with statutory requirements must be incentivised and guided by the appropriate timelines and easily accessible information, not just enforced by an empowered arm’s-length body. I look forward to engaging constructively with the Government on this matter and I am very grateful for other noble Lords’ contributions to this debate.
(2 months, 1 week ago)
Lords ChamberThe noble Lord is right that Flood Re was set up for a certain period of time. I am doing this from memory, and I shall tell the House if I am wrong, but I think it was due to run through to 2036.
We are looking at possible alternative arrangements. Clearly, the last thing we want to do is take away households’ ability to have insurance. We do not want to go back to how it used to be—people being completely uninsurable or having excess limits of, say, £10,000. That is not the future we see for insurance. The noble Lord is right that it has been set up as an intermediate system, and we are looking at ways to move forward.
My Lords, the Environmental Audit Committee’s fourth report on flood resilience in England in October 2025 highlighted that Defra’s flood budget is increasingly a thin blue line protecting the nation’s transport, energy, housing and utilities from escalating flood impacts, yet it remains siloed, with no cross-government accountability for measurable outcomes or value for money. Will the Minister clarify what work the department is doing beyond using standard HM Treasury guidance to ensure value for money in flood investments?
As I mentioned earlier, we have invested a record amount of money in addressing flooding. We have also reviewed the way funding is applied and how communities, businesses and so on can apply for it. The new programme we have set up has four metrics, and if I briefly go through those, it will help to answer the noble Lord’s question.
There are two outcome metrics and two output metrics. The first outcome metric is around economic benefits. It captures all the damage that has been avoided to properties, infrastructure, agriculture and a range of other areas, as well as the positive economic benefits of such things as natural flood management, which we are very keen to invest in. The second is around the risk to properties. The Environment Agency is developing a way of reporting on the reduction in flood risk due to the investments made through the national flood and coastal investment programme. I think that is due to report in April.
The first output metric is around how properties benefit from the new investment. That is made up of three parts: whether it is large reductions in, small reductions in, or prevented increases in any size of flood risk. The last metric is around asset condition, which initially remains the percentage of Environment Agency high-consequence assets at target condition. So we have a whole new system of managing exactly those outcomes and investments.