Trail Hunting
Daniel Zeichner Excerpts(1 day, 12 hours ago)
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The Minister for Food Security and Rural Affairs (Daniel Zeichner)
I congratulate my hon. Friend the Member for Camborne and Redruth (Perran Moon) on securing his first Adjournment debate and speaking with such knowledge and passion about this important subject. I welcome the valuable opportunity to close the debate by outlining the Government’s strong commitment to animal welfare priorities, including taking action on trail hunting. I also thank all hon. Members who intervened during my hon. Friend’s speech, because they showed the interest and passion there is on this subject.
The Government were elected on a mandate to introduce the most ambitious plans in a generation to improve animal welfare, and that is exactly what we will do. Banning trail hunting is only one part of that. We will also end puppy smuggling and puppy farming, ban the use of snare traps and ban the importation of hunting trophies. We are supporting the Animal Welfare (Import of Dogs, Cats and Ferrets) Bill, which will close loopholes in the non-commercial pet travel rules that are abused by unscrupulous traders. It will also give the Government powers to prevent the supply of low-welfare pets to the United Kingdom. We will prohibit the bringing into Great Britain of puppies and kittens under six months old, dogs and cats with non-exempt mutilations such as cropped ears, and heavily pregnant dogs and cats.
We are committed to tackling low-welfare dog breeding practices to bring an end to puppy farming. As part of that, we are carefully considering the results of the post-implementation review of the Animal Welfare (Licensing of Activities Involving Animals) (England) Regulations 2018, the recommendations from the Environment, Food and Rural Affairs Committee’s inquiry into pet welfare and abuse, and the animal welfare committee’s opinion on canine breeding practices.
As was outlined in our manifesto, we will also bring an end to the use of snare traps in England. I am aware that both the Welsh Government and the Scottish Government have brought in bans on the use of snares in recent years, and we are now considering the most effective way to deliver on that commitment. We will set out the next steps in due course. In the meantime, anyone using snares has a responsibility under the Animal Welfare Act 2006 to ensure that their activities do not harm protected species or cause any unnecessary suffering.
The Government are also committed to banning the import of hunting trophies from endangered animals. The UK has a long history of championing global conservation, and the Government are carefully reviewing how to introduce effective legislation as soon as possible. We welcome the establishment of the national animal welfare panel by the all-party parliamentary group on animal welfare and look forward to working with it in the future. As a recent report from the animal sentience committee stated, there is work to do to improve compliance with animal welfare regulation. We will be considering recommendations and proposals as we work to bring that about.
I know that hon. Members in the Chamber will share my deep concern about the recent high-profile incidents of hare coursing that have been in the news. Hare coursing is an abhorrent activity that can quickly shatter rural communities’ sense of safety and security. It is a serious crime, which is often carried out by organised criminal gangs. It is vital that rural communities are protected by effective policing to ensure enforcement of the law. DEFRA, alongside the Home Office, is working jointly with the National Police Chiefs’ Council to deliver an updated rural and wildlife crime strategy. This joined-up approach between Government and policing will help to ensure that the entire weight of Government is brought to bear on tackling rural and wildlife crimes.
The Government are continuing to provide support to the national wildlife crime unit alongside the national rural crime unit. Those units will receive £800,000 from the Home Office in 2025-26. DEFRA will also provide the national wildlife crime unit with a further £424,000 to help prevent and detect wildlife crime by obtaining and disseminating intelligence, undertaking analysis that highlights local or national threats, and directly assisting law enforcers in their investigations. That includes cases of cruelty to wildlife and supporting local police forces to take positive action against those who break the law through illegal fox hunting.
Let me turn to the primary focus of this debate: trail hunting. As we are aware, the Hunting Act 2004 made it an offence to hunt a wild mammal with dogs, except where it is carried out in accordance with the exemptions in the Act. Those found guilty under the Act are subject to the full force of the law. However, as many have said here today, the nature of trail hunting makes it difficult to ensure that wild mammals such as foxes are not endangered. The trail is not laid constantly but is occasionally lifted for a distance and dropped again to allow the hounds to search for the scent. Huntsmen and followers often do not know where trails have been laid and that can mean that, at times, the scents of wild animals are picked up. That makes it challenging to protect foxes, as well as other wild animals such as deer and hares.
From November 2023 to March 2024, as we have heard, the League Against Cruel Sports reported nearly 526 incidents of suspected illegal hunting and 870 incidents of hunts causing distress or nuisance. That is why the Government are committed to going further by putting in place a ban on trail hunting. My hon. Friend asked for a specific timeline. I am afraid that, at the moment, I cannot give him that, but I want to assure Members that we are working to move this forward and will deliver a thorough consultation later this year to ensure that the legislation that is brought forward is effective in practice and that its impact is understood.
I also appreciate that, as we have heard, there are people in this House who will not welcome a change in the law. I want to reassure Members here today that the Government recognise the contribution made to the rural economy by supporting professions such as farriers, vets and feed merchants. We will, of course, look closely at the impact that any changes may make. We will consult relevant stakeholders at the appropriate time and further announcements will be made in due course.
More generally, we will pull together an overarching approach to animal welfare across farmed animals, companion animals and wild animals. We have been meeting key stakeholders from each of those sectors and want to work in partnership with them on improving animal welfare. I conclude by thanking my hon. Friend the Member for Camborne and Redruth for securing tonight’s debate, and I very much look forward to working closely with him in future to secure progress on this very important issue.
Question put and agreed to.
Fishing Quota Negotiations: Impact on UK Fleet
Daniel Zeichner Excerpts(1 week ago)
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The Minister for Food Security and Rural Affairs (Daniel Zeichner)
It is a pleasure to speak with you in the Chair, Mr Vickers. I thank the hon. Member for St Ives (Andrew George) for securing this debate. I welcome the opportunity to talk about the UK’s fishing and seafood industry and particularly the impact of quota negotiations on the UK fishing fleet in 2025. I thank all Members for their constructive and thoughtful remarks.
I agree with much of what the hon. Member for Epping Forest (Dr Hudson) said, particularly about cetacean hunts. I assure him that we have pressed that case at every opportunity, and that is exactly why we will be proceeding with electronic monitoring. We have common cause on some issues.
We have heard from Members from all around the United Kingdom—Northern Ireland, England, Scotland and, of course, the south-west—and the views of hugely diverse interests. As my hon. Friend the Member for Great Grimsby and Cleethorpes (Melanie Onn) pointed out, this is a complicated sector. I will try to cover as many of the points that Members made as possible. I say that to give them a sense of where I am going and so they do not feel that I am leaving them out. I will start with some general points, and then touch on the reset with the European Union and say a bit about the spatial squeeze. I will then address the very detailed points that the hon. Member for St Ives made.
I thank the hon. Gentleman for his very thoughtful and sensible introduction, which covered a range of issues. I reiterate how much I enjoyed that visit in the glorious late summer last year—it seems quite a long time ago now. I very much enjoyed seeing the diversity of the fishing fleet in Newlyn and the fish market, and listening to the views of fishing and seafood businesses. It is only by having direct discussions with people working on the frontline that I can be properly informed. It is all very well sitting around having policy discussions, but it is best to hear from those people.
I want to restate at the outset just how important the fishing sector is as a source of sustainable food for our country—a number of Members made that point. There are also wider social, economic and cultural issues surrounding that historic sector. As the Secretary of State has said repeatedly, the Government are keen to co-create policy through listening to fishermen and their representatives. That will enable us to create better policy.
Fishing is, of course, a very challenging job, and as the hon. Member for Epping Forest rightly said, sadly it is too often dangerous. It is therefore always right to pay tribute to those who have been injured or have tragically lost their lives at sea over the last year. The Marine Accident Investigation Branch published its 2023 annual report in October, in which it detailed the tragic loss of four lives and the loss of three fishing vessels in 2023. It is always important that we remember that. It is also important that the good work to improve safety continues—I will touch on the regulatory issues later—and that safety is paramount. I am afraid that there is still under-reporting, as the marine accident investigation branch flags up.
This debate is about the fisheries negotiations for 2025 and the impact on the industry. It is timely because we published reports on the sustainability and economic outcomes of the negotiations just last week, so I thank the hon. Member for St Ives for securing it now. The independent sustainability outcomes report states that the number of fish stocks, set in line with scientific advice, stayed the same for 2025 compared with last year, while the economic outcomes report details the UK fishing opportunities for all UK quota stocks in 2025. As mentioned by the Select Committee Chair, the right hon. Member for Orkney and Shetland (Mr Carmichael), those reports are quite complicated.
I recognise the point made by the hon. Member for Gordon and Buchan (Harriet Cross) about the figures, although I take slight issue with her: yes, 769,000 tonnes of quota is down a little, but I am told that its value is slightly up, at £1.04 billion—it is about the same. The issue is that our share has remained constant while the overall amount has fallen on scientific advice. We need to be mindful of this issue. One thing on which everybody agrees is that it is essential that we follow scientific advice. We obviously have to interpret that advice in line with legislation and policy, but we still have the global challenge of maintaining our fish stocks.
As an independent coastal state, our approach to all negotiations has been driven by our domestic priorities, and sustainability is at the heart. We aim to set catch limits that take account of the best available scientific advice, but we will always back our British fishing industry and, through negotiations, push for the best possible opportunities for British vessels. That is a complicated set of trade-offs and negotiations. Many different parts of the sector come to me, quite rightly, to make their case, and they do it well, but we have to get the best deal for everybody.
In that spirit, in our bilateral negotiations with Norway for 2025 we trialled a new approach by working closely in partnership with UK industry representatives to develop a package of quota exchanges. This approach stems from our commitment to putting more emphasis on delivering our policies and programmes in partnership with stakeholders—we are working with the industry, so it is not just us doing it.
Industry feedback about addressing the balance of those who contribute and those who benefit from the negotiations has been broadly positive. In the light of that feedback, my officials will this year be hosting a series of workshops with stakeholders to help us consider how we take forward our negotiations for the next year. I am determined that we do things differently under this Government, and I am keen that we co-deliver wherever possible.
The hon. Member for St Ives asked about multi-annual quotas, which we discussed a few months ago. When setting TACs for stocks, we are guided by the best possible scientific advice. For most stocks, that is provided annually by the International Council for the Exploration of the Sea, but for some stocks, such as black scabbardfish and northern shelf ling, ICES provides biannual advice, so we agree catch limits for more than one year. In some forums, we are seeking long-term management strategies that can provide greater stability for industry between years. I hear the hon. Gentleman’s point, and we are looking at this issue, but it is important that we respond to annual advice.
Andrew George
I am not a fisheries scientist, but a lot is known about the maximum sustainable yield and the recruitment of each of those species that are relevant for commercial fisheries, as well as about the length of life and when species reach sexual maturity. It is therefore surprising that scientists cannot provide some projections for future years. Even if the data is only indicative, it would be helpful for the industry to know it.
Daniel Zeichner
I hear the hon. Gentleman’s point, and I will go away and discuss it further. Virtually every Member who spoke talked about our relationship with our near neighbours in the European Union. Clearly there is a negotiation going on by proxy, if not directly, at the moment, so I will not comment on the individual points that have been made other than to reflect that we are determined to get the best possible outcome for our nation. I am determined to get the best possible outcome for our fishing sector, because there is a widespread sense that people were sold short last time around.
The temporary adjustment period for fisheries access ends in 2026, as was agreed in the UK-EU trade and co-operation agreement. The Government are absolutely committed to a reset with the European Union, but I assure the House of my determination that we get a good outcome for the fisheries sector. We have proven our ability to build a strong relationship with the EU on fisheries matters, including through the quota negotiations. We have had five years of annual negotiations, and we have built strong foundations on which to take forward future agreements that benefit our shared fish stocks and our respective industries. Other countries are clearly pushing very hard, and we will push equally hard for our sector.
In 2026, the fisheries heading of the trade and co-operation agreement will see access for EU vessels into the UK zone become a matter for annual negotiation, to sit alongside our annual consultations on catch limits with a range of coastal states and international fora on fishing opportunities. That is a very important point.
Our ambitions for fisheries are no longer tied to the EU common fisheries policy. We have our own objectives, and we are making progress on things like fisheries-management plans, which are very important. That is central to our priorities for UK fisheries and the thriving, sustainable industry we want.
Clearly, one of the biggest issues facing the sector is the spatial squeeze, and I want to send a message to the industry that I am absolutely determined to stand up for our fishing sector. We need to achieve a whole range of things in our waters, and food is one of them. That will only get more difficult in the coming period, but we have established a very good process for resolving these issues through our marine spatial prioritisation programme. We will take a strategic approach to managing those dilemmas, but I do not underestimate how strongly people in the fishing sector feel about this—it has been raised with me repeatedly. I insisted that we put out the very strong written statement a few weeks ago on protecting the fishing sector.
Melanie Onn
This is the point I wanted to make to the shadow Minister, the hon. Member for Epping Forest (Dr Hudson). Does the Minister have a sense that great progress has been made, particularly on the Celtic sea and the Crown Estate’s approach to engaging with the fishing community at the earliest stage to try to minimise the impact of spatial squeeze?
Daniel Zeichner
The Crown Estate plays an important role, and we are working together closely. Things have improved. It has not always been an easy relationship, but we have a strong process and I am confident that it will work successfully.
I am conscious of time, so I will address some of the points that have been raised, particularly in relation to the south-west. I am very much taken by what the hon. Member for St Ives said about low-impact fishing. These are complicated issues, but I am pleased that, from January 2025, the licence cap of 350 kg of quota species has been removed for the under-10s. That was quite contentious a while ago, but it gives fishers greater flexibility to diversify between quota and non-quota species.
The pollack issues are clearly fraught and complicated, and I am afraid that my advice to the hon. Gentleman is perhaps not entirely what he wants to hear. We agreed with the EU a bycatch-only TAC for pollack, which equates to a UK share of 172 tonnes of pollack in area 7 for 2025. I hear what the hon. Gentleman says about abundance, but the ICES advice is what we have to follow. Its advice is for a zero catch, as last year, and it does not see signs of recovery. That is clearly a problem in the short term. We are forecasting to allow for a 20% increase in stock biomass next year.
I understand the strength of feeling on the recreational pollack fishing industry, and we have sent a clear signal that this is the last opportunity for this to work for the recreational sector. Voluntary guidelines have been developed by the Angling Trust and the Professional Boatman’s Association to encourage anglers to adopt a bag limit and a minimum conservation reference size, as well as closed seasons to avoid the spawning period, and the use of descending devices to reduce pollack mortality. We want to see whether those measures can work, but if they do not, I am prepared to introduce mandatory measures. I appreciate that this is still a very difficult question.
Moving on briefly to sole, the issue of 7h and 7e is quite complicated. This is probably an incomprehensible conversation for people outside the industry, but we are looking closely at the potential genetic connection between the two. We are working with the EU in the Specialised Committee on Fisheries to facilitate consideration of the data by the relevant ICES working group to improve our scientific understanding and to encourage the most appropriate management. There is ongoing work, but I appreciate that this is a concern.
The scientific work on pollack is due in June, and I will go away and look at it more closely before coming back to the hon. Member for St Ives.
I want to give the hon. Gentleman a minute to respond, so I will bring my remarks to a conclusion. I very much appreciate the wide range of challenges facing the sector, and I understand why people are feeling anxious and fraught. This is a difficult time, but we tackle it by working together in close collaboration. I am determined that we work and listen closely.
Daniel Zeichner
I will not, as I want to give the hon. Member for St Ives a moment to respond.
As I said back in November, I genuinely think there is a bright future for the fishing sector, and it is important that we understand it is a key source of food. The Government are absolutely committed to making the most of these opportunities to ensure that we can properly contribute to food security and economic growth.
Oral Answers to Questions
Daniel Zeichner Excerpts(1 week, 6 days ago)
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David Reed (Exmouth and Exeter East) (Con)
The Minister for Food Security and Rural Affairs (Daniel Zeichner)
Around 500 claims each year will be impacted. Our reforms will mean that farmers will pay a reduced inheritance tax rate of 20%, rather than the standard 40%, and payments can be spread over 10 years interest free. Farm-owning couples can pass on up to £3 million without paying inheritance tax. In our view, this is a fair and balanced approach, and should be seen against the backdrop of the Government committing £5 billion for farming over two years—the largest budget directed at sustainable food production and nature’s recovery in our country’s history.
David Reed
I am starting to feel like DEFRA Ministers are purposefully ignoring me and Devon’s farming community. I have given the Secretary of State since early December to answer my letters and my invitations to meet with Devon’s farming community, in order to explain how changes to agricultural property relief and business property relief are going to affect them. At the last DEFRA questions, I called out the Secretary of State for not replying to any of my requests. The Minister for food, farming and fisheries replied from the Dispatch Box that
“I would love to meet farmers in Devon, so I am happy to add him to the list for my grand tour across the country to reassure people that there is a strong plan to ensure that farmers have a viable future”.—[Official Report, 6 February 2025; Vol. 761, c. 909.]
So far, those platitudes have gone unrealised. With less than a month until these changes take effect, Devon’s farmers are still in the dark about how the changes are going to affect them. If this is how Ministers treat fellow MPs, is it any wonder that farmers up and down the country feel completely abandoned by this Labour Government?
Daniel Zeichner
I hear the hon. Gentleman’s complaint, but I have been to Devon in my role before, and I will come to Devon again. I am always happy to meet farmers. I have spent quite a lot of time at this Dispatch Box answering questions from Conservative Members, so perhaps fewer questions will mean more time to go out and meet farmers.
Robbie Moore (Keighley and Ilkley) (Con)
Back in November, the farming Minister unbelievably said from the Government Dispatch Box that it was striking how many people were coming up to him at farming events and saying, “You’re right to be making these changes to APR and BPR.” Conservative Members have been out and about all over the country; indeed, I was in Staffordshire, Warwickshire and Shropshire yesterday, and I have not found one farmer who thinks that he is right. In fact, the level of anger and sheer disbelief among our farming community is immense as this Government’s attack on our farming cash flows continues through the dramatic reduction in delinked payments, the sudden stop of the sustainable farming incentive and the rise in employer’s national insurance contributions—I could go on. Business confidence is at an all-time low, so can the Minister provide the name of just one farmer he has spoken to who thinks he and his Government are right to be pursuing these changes?
Daniel Zeichner
I suggest that the shadow Minister goes out and speaks to a few more people, because I was stopped in a local village just this weekend and encouraged —[Interruption.] I am not going to name names, but he should check with some of his Conservative candidates in elections. They said, “Keep on going, you are doing the right thing.” The situation is not as the shadow Minister describes. He might do well to look at the figures for projected farm business incomes for this year, which show that in many sectors, those business incomes are doing rather well. That probably explains why people are not as exercised about it as him.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call the Liberal Democrats spokesperson.
Daniel Zeichner
The hon. Gentleman always speaks with passion about his constituents, and I absolutely understand those concerns. He is right to say that the schemes we inherited did not reward those areas as well as they should. That is why in our announcement a few weeks ago, we increased the higher level stewardship payments by £30 million, which will be of particular advantage to people in his area. I agree with him, and the schemes we inherited were not good enough. That is why we are revising them.
Mr Jonathan Brash (Hartlepool) (Lab)
Noah Law (St Austell and Newquay) (Lab)
The Minister for Food Security and Rural Affairs (Daniel Zeichner)
The new national procurement policy statement sets out requirements for Government contracts, and favours high-quality products that we believe British producers are very well placed to supply. This will support our ambition to ensure that half of the food supplied for public sector catering comes from local producers, or those certified to higher environmental standards.
Noah Law
I welcome the Minister’s commitment to ensuring that 50% of public procurement is of British produce. Given the significant £5 billion of bargaining power that this represents, what steps is he taking to ensure that this leads to fairer prices for farmers and supports the fundamental operating profitability of the sector?
Daniel Zeichner
I am grateful for the question from my hon. Friend. We are absolutely determined to make the best of this opportunity, not least because the previous Government did not know how much we were actually buying. The Secretary of State has announced that we will monitor the food bought in the public sector, and that will inform our policy of making sure that British farmers make the most of the opportunity for public procurement.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call the Chair of the Environment, Food and Rural Affairs Committee.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
The Secretary of State, in her speech to the Oxford farming conference, spoke about the plan for change, which was going to include a commitment to public sector procurement, but that was in January, and we are now in March. With the closure of the basic payment scheme and the ending of the sustainable farming incentive, farm incomes are under real cash pressure in the here and now, so when will we hear more detail about the very welcome commitments that the Secretary of State made at the Oxford farming conference in January?
Daniel Zeichner
As I said in response to my hon. Friend the Member for St Austell and Newquay (Noah Law), the first thing we needed to do was establish how much we are actually buying, and that is now in progress. I absolutely get the point about the urgency. The question is why doing this took the previous Government so long when they shared our ambition. We are determined to make this happen.
Patrick Hurley (Southport) (Lab)
Johanna Baxter (Paisley and Renfrewshire South) (Lab)
The Minister for Food Security and Rural Affairs (Daniel Zeichner)
I am sure that my hon. Friend’s cats, who I am told are called Clem Cattlee and Mo Meowlam, will be delighted to hear that the Government are looking very closely at the Animal Welfare Committee’s opinion on the welfare implications of current and emergent feline breeding practices. I can assure them that we are carefully considering the committee’s recommendations.
Steff Aquarone (North Norfolk) (LD)
Daniel Zeichner
The hon. Gentleman is absolutely right. Looking ahead, the future can be very exciting for farming, but as the Secretary of State said, we have to establish farming as a profitable sector. We will work with the hon. Gentleman’s farmers to ensure that vision is realised.
Olivia Bailey (Reading West and Mid Berkshire) (Lab)
My constituents in Burghfield Bridge have suffered for years with the devastating effects of flooding, and are rightly frustrated that nothing is being done. Will the Minister meet me to discuss flood resilience and better join-up of local agencies in Burghfield Bridge and across my constituency?
Mr Gagan Mohindra (South West Hertfordshire) (Con)
May I first congratulate the new councillor, Ian Campbell, on his by-election win yesterday? The team got a great result in my part of the world.
Many in my constituency are concerned about the newly coined grey belt, which will be used as an excuse to destroy our land irreversibly. What calculations have the Minister and his Cabinet colleagues made about the impact on the environment of over-development on unspoiled green-belt land?
Daniel Zeichner
This is why we will be introducing a land-use framework—to ensure that we can make rational decisions about how land is used to best effect.
Tom Rutland (East Worthing and Shoreham) (Lab)
We are blessed to be nestled between the beautiful River Adur and the sea in my constituency, but that leaves us prone to flooding. Last year, my constituents in Shoreham found their homes and businesses flooded. I welcome the Government’s £2.65 billion for flood defences and must stress the importance of East Worthing and Shoreham getting its fair share of that funding. Will the Minister confirm when the Government will announce funding allocations for local flood defence projects?
Farming
Daniel Zeichner Excerpts(2 weeks, 6 days ago)
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Jim Shannon
The hon. Gentleman is absolutely right, and he sums up our views.
The decision to introduce the farmers’ inheritance tax will destroy the very essence of what so many farmers have worked hard to achieve. I have called on numerous occasions for the Minister to support us. He is an honourable man. He could be a friend of the farmers—we will see just how much of a friend he is—if he contacted the Chancellor and suggested to her that one solution is to increase the threshold from £1 million to £5 million. If that is done, farms will be saved, as will the future of family farms in Northern Ireland. Does he want to be the farmers’ friend?
The Minister for Food Security and Rural Affairs (Daniel Zeichner)
I am the farmers’ friend.
Jim Shannon
When the Minister approaches the Chancellor and persuades her to increase the threshold from £1 million to £5 million, he will be my friend forever, and he will be the friend of all the farmers in my constituency. He needs to do that. The National Farmers Union and the Ulster Farmers’ Union have the solution.
If I can digress slightly, Northern Ireland has one of the highest tuberculosis rates in Europe, with over 10% of our herds affected annually. What discussions has the Minister had with the farming Minister in Northern Ireland, Andrew Muir, in relation to TB and avian flu, to ensure that we can overcome these setbacks together?
Our food security and farming industry matter. It is the young farmers who we are fighting for—I am fighting for my neighbours’ sons who want to have a farm for the future. There are so many expectations on farmers. I am pleased to see that there has been a boost in the conversations surrounding the declining mental health of our farmers, which is another massive issue. There is no doubt that our farmers need to be supported, not torn down by a Government who are meant to represent them.
To conclude, I am proud of our farming industry and grateful for it, and I want it to succeed. For those who represent rural constituencies or those who do not, the importance of agriculture cannot be disregarded, and we must make it a goal to preserve, protect and progress the success of farming across Northern Ireland and the rest of the United Kingdom. We need the Minister to stand up for farming; we all look to him to do that. Go to the Chancellor, tell her what we need—to increase the threshold from £1 million to £5 million—and things will be better.
The Minister for Food Security and Rural Affairs (Daniel Zeichner)
I thank the right hon. Member for Orkney and Shetland (Mr Carmichael) and congratulate him on securing this very important debate on the future of farming. I will not say that I agreed with all his conclusions in his opening comments, although I listened to them closely, but I thank him and his fellow members of the Environment, Food and Rural Affairs Committee for their continuing work. I look forward to meeting his Committee in time.
I am very grateful to have the opportunity to talk about the very important role that farming plays in this country, because food security is national security, and our commitment to farmers is absolutely steadfast. It is the hard work of the UK’s farmers that puts food on our tables and stewards our beautiful countryside.
As we all know, though, the sector is facing high costs and tight margins. Farmers have struggled to get enough workers to pick fruit and veg, and frankly, they have been sold out in past trade deals. Farmland is increasingly at risk from severe flooding and drought, and this all comes as we face the biggest transition for farming in generations, moving away from the basic payment scheme towards more sustainable methods of farming. The underlying problem in the sector is that farmers do not make enough money for the hard work and commitment that they put in. We are absolutely committed to making farming more profitable, and that approach will underpin our 25-year farming road map and our food strategy, through which we will work in partnership with farmers to make farming and food production sustainable and profitable.
That road map stands on three principles, the first of which is a sector that has food production at its core. The role of farming will always be to produce the food that feeds our nation. The instability that we have seen, both relating to Ukraine and during covid, shows that food security truly is national security. The second principle is a sector in which farm businesses are more resilient and able to withstand the shocks that disrupt farming from time to time, whether it be severe flooding, drought or disease. We will help farmers who want to diversify their income to put more money into their business, so that they can survive those more difficult times when they come.
Daniel Zeichner
I am going to make some progress, because I know that time is short. The third principle is a sector that recognises that restoring nature is not in competition with sustainable food production, but is essential to it.
On our first strand—food production—our new deal for farmers is supporting them to produce food sustainably and profitably, and we are making progress. Statistics released earlier this week show that average farm business incomes across the country are forecast to rise in the first year of this Government. That is welcome news, but we recognise that there is more to do. That certainly will not happen overnight, but over recent weeks, we have announced a series of new policies. We are extending the seasonal worker visas for five years, and we are making the supply chain fairer, an issue raised by my hon. Friends the Members for North Somerset (Sadik Al-Hassan) and for Suffolk Coastal (Jenny Riddell-Carpenter). In the next few weeks, we will see new regulations for the pig sector, making sure that contracts clearly set out expectations and only allow changes if they are agreed by all parties. Of course, we are also introducing a new regulator alongside the Groceries Code Adjudicator, building on the work of the existing regulator—the Agricultural Supply Chain Adjudicator, which is already in place.
We are using the Government’s own purchasing power to back British produce, working with the Cabinet Office to create new requirements for Government catering contracts to favour high-quality, high-welfare products that British producers are well placed to provide, as was outlined very well by my hon. Friend the Member for Shrewsbury (Julia Buckley). That will mean that British farmers and producers can compete for a fairer share of the £5 billion a year that the public sector spends on food, with that money going straight into farmers’ bank accounts to boost turnover and profits. We will never lower our food standards in trade agreements, but will promote robust standards nationally and internationally, and will always consider whether overseas produce has an unfair advantage. That point was made by my hon. Friend the Member for St Austell and Newquay (Noah Law) and by others.
We are investing in the UK agri-technology sector, and I listened closely to the comments made by the hon. Member for Mid Norfolk (George Freeman)—there is always much that we agree on. As we announced last month, we are looking to put in a further £110 million in farming grants, and we are also strengthening the wider British tech sector, a point that was made well by my hon. Friend the Member for Middlesbrough South and East Cleveland (Luke Myer). These reforms will support farmers to make more money from the food they produce.
On the second strand, diversification, farmers must be resilient against future challenges if they are to remain financially viable and strengthen food security. We know the threat from flooding, drought and animal disease, as well as the geopolitical tensions that increase demands on our land for energy generation. We are investing to help farm businesses build resilience against animal diseases that can devastate livelihoods and threaten our entire economy—we are all mindful of the issues with bluetongue and avian flu. On the recent case of foot and mouth that we saw in Germany and the one in Hungary, I spoke to the Hungarian Minister earlier this week, and we have put in place all the appropriate precautions. As ever, though, if the shadow Secretary of State wants a briefing with the chief vet, that is always available in these cases.
We are investing over £200 million to set up a new national biosecurity centre, modernising the Animal and Plant Health Agency facilities in Weybridge, which will be vital for protecting farmers, food producers and exporters from disease outbreaks that we know can be devastating to businesses. We are helping keepers of cattle, sheep and pigs in England to improve the health, welfare and productivity of their animals by expanding the fully funded farm visits offer. We have also announced new ways to help farmers to remain profitable and viable, even in a challenging harvest.
We will consult on national planning reforms this spring to make it quicker for farmers to build new buildings, barns and other infrastructure to boost food production, and we will ensure that permitted development rights work for farms to convert larger barns into whatever is required or suits their business planning, whether that is a farm shop, a holiday let or a sports facility. We are working with the Department for Energy Security and Net Zero so that more farm businesses can connect their own electricity generation to the grid more quickly, so that farmers can sell surplus energy and diversify income.
The third element is nature. Restoring nature is vital to food production; it is not in competition with it. Healthy soils, abundant pollinators and clean water are the foundations that farm businesses rely on to produce high crop yields and turn a profit. Without nature thriving, there can be no long-term food security. That point was well made by my hon. Friend the Member for South West Norfolk (Terry Jermy). We now have more than half of all farmers in environmental schemes. That includes 37,000 live SFI agreements, meaning that 800,000 hectares of arable land is being farmed without insecticides, 300,000 hectares of low-impact grassland is managed sustainably and 75,000 km of hedgerows are being protected and restored. That is important for nature.
We have already had a discussion about the SFI cap. It is set at £1.05 billion for 2024-25 and 2025-26. As we discussed yesterday, that cap was reached this week with a record number of farmers in the scheme and 37,000 live agreements. Every penny is now paid to farmers or committed for payment through existing agreements or submitted applications. We will continue to support farmers to transition to more sustainable farming models, and we will announce details of the revised scheme after the spending review.
Victoria Atkins
The clarification that everybody wants is this: we saw the figures last night, and they cut across two years, so what is the money for this financial year—2024-25—that the Minister describes as a cap? What is the value that he reached on Tuesday night that led to that announcement?
Daniel Zeichner
We have been far more transparent in disclosing how the budgets work than the previous Government. The figure was disclosed last night, and the shadow Secretary of State can look closely at that. As she will know, we have to monitor things closely over multiple years. What we cannot and will not do is play fast and loose with the nation’s finances. We are taking no lessons from the Conservatives about how to manage public money in this country. This is about using public money in a way that supports food production, restores nature and respects farmers for the effective business people that they are, while ensuring that we stick to our budgets.
We are also improving other farming schemes. The Government have announced an increase in higher level stewardship payment rates across a range of options for this year. We will reopen the ELM capital grant scheme and open the rolling application window for the countryside stewardship higher tier later this year. We are continuing with the important landscape recovery projects that were awarded funding in rounds 1 and 2, as well as some of the other funds referenced by my hon. Friend the Member for Cannock Chase (Josh Newbury).
It is those three strands that will create a resilient, profitable sector for decades to come. I look forward to continuing this important discussion with Members from all parts of the House.
Madam Deputy Speaker (Judith Cummins)
I call Alistair Carmichael to quickly wind up.
Rural Communities: Government Support
Daniel Zeichner Excerpts(3 weeks ago)
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The Minister for Food Security and Rural Affairs (Daniel Zeichner)
It is a pleasure to serve with you in the Chair, Dr Murrison. I congratulate the hon. Member for South Devon (Caroline Voaden) on securing the debate. The number of speakers shows how much interest there is, and many points have been covered—too many for me to cover in a short time, although I will do my best.
Both Front-Bench spokespeople—the hon. Members for Glastonbury and Somerton (Sarah Dyke) and for Keighley and Ilkley (Robbie Moore)—raised the issue of the SFI, which I addressed in a statement earlier today. I thought the shadow Minister started so well when he talked about the challenge that faces any Government, given the cross-departmental nature of these issues. We are honoured to have a former Secretary of State, the right hon. Member for North East Cambridgeshire (Steve Barclay), with us, and he will know full well how difficult it is to drive these rural issues from DEFRA. I made a particular pitch to be the rural Minister in Labour’s team in the Commons—which is different from before—and I am absolutely determined that these rural issues get a fair hearing.
Steve Barclay (North East Cambridgeshire) (Con)
I put on record my apologies, Dr Murrison—I was giving evidence to the covid public inquiry, which I hope colleagues will realise was the reason for my late arrival. I have a quick question for the Minister: could he clarify when he was first told of the Government’s decision to close SFI for new applications?
Daniel Zeichner
We made the decision last night, based on many months of following the budgets, but as I explained earlier, the logic of the change to the system is that if there is a fixed amount of budget, I am afraid there comes a point when the system is full.
Members have raised many other issues, but because we have a three-hour Backbench Business debate on farming in the Chamber tomorrow, I will move on and thank the hon. Member for South Devon for bringing this debate forward. I had an opportunity to visit her lovely constituency very early in my tenure as Minister. I thought she gave a very good account, as did many other Members, of the broad range of challenges faced in rural areas.
I am committed to the rural brief. I have done a number of visits in my first few months that have shown me the importance of applying the Government’s missions in rural areas—particularly our aims to grow the economy, develop clean energy and tackle crime. I went to Northumberland to see the excellent work of the national rural crime unit. I spoke to a number of farmers who have sadly had expensive equipment stolen, and I spoke to volunteer crimewatch groups. I have also been to Warwickshire recently to see the positive effect that can be achieved through community shops and community initiatives that ensure that community facilities are in place, such as village halls. I will be doing many more visits around the country and seeing many more of those.
Claire Hazelgrove (Filton and Bradley Stoke) (Lab)
The issue of rural crime has come up a bit less in today’s debate, so I want to make sure that we have some moments to reflect on it, as the Minister has started to. Does he agree that the Government’s approach of having a cross-governmental rural crime strategy—it is the first of its kind—will tackle these issues in meaningful and long-lasting ways for rural communities?
Daniel Zeichner
My hon. Friend is right. It is long overdue. I have had detailed conversations already with colleagues in the Home Office about how we can take this issue forward, and there will be further announcements in due course. We have been looking at a range of issues that are important to rural areas, but we recognise that there are very specific challenges, a number of which have been touched on today. We also know that direct support through funding programmes is important. That is why we announced last week that up to £33 million will be directed to the rural England prosperity fund and used to help businesses in rural areas to expand. That will create jobs, kick-start the rural economy and help to improve local infrastructure and essential services.
Calum Miller (Bicester and Woodstock) (LD)
Many of my constituents suffer some of the worst mobile and broadband coverage in the country. That is a particular concern for vulnerable households, who are no longer able to access copper-wire telephony and are forced to rely on internet protocols. What are the Government doing to make sure that vulnerable households still have access to phones in an emergency?
Daniel Zeichner
The hon. Member is absolutely right to raise that important point, which I will come to in a moment.
I was about to mention the £5 million in funding for capital grants for the refurbishment and development of community-owned assets such as village halls and community centres. That funding will also support rural housing enablers, who are very important in bringing forward sites to provide affordable housing. We are also providing further funding for Actions with Communities in Rural England to provide advice and support to rural communities and voluntary groups such as those that I mentioned visiting recently.
I recognise the descriptions from a number of colleagues of the need to travel further to access work, education and training. We fully appreciate that that can be much more costly and time-consuming, leading to the frustrations that have been described. I listened closely to my near-neighbour, the hon. Member for Ely and East Cambridgeshire (Charlotte Cane), when she spoke about local bus services. She will know that the mayor of the combined authority in Cambridgeshire has used powers to move to franchising for bus services. We have set out wider plans for the future in our bus services Bill, which will give local leaders the tools they need to ensure that bus services reflect the needs of the communities they serve.
The digital issue, which the hon. Member for Bicester and Woodstock (Calum Miller) has just raised, is central to our view of the future. It was also highlighted by my hon. Friend the Member for Ossett and Denby Dale (Jade Botterill). Through the shared rural network, which has helped to deliver 4G mobile coverage to 95% of the UK a year ahead of target, we are continuing to deliver 4G connectivity to places where there is the kind of limited coverage that has been described. We know that there are still parts that lag behind, and we will work with the industry to deliver improved coverage to those communities via the shared rural network.
Mr Angus MacDonald
I wonder whether the Minister can persuade the Chancellor to leave her constituency of Leeds West and Pudsey and explore the reaches of rural Britain. It strikes me that a lot of these issues are due to funding and the fact that rural Britain is substantially underfunded, compared with urban Britain.
Daniel Zeichner
That is a very long-running debate that goes back over decades. I will do all I can to persuade the Chancellor of the needs of rural Britain.
Project Gigabit continues to be rolled out. It is delivering gigabit-capable broadband to many UK premises, many of which are situated in rural communities that are not in the commercial roll-out plans.
Hon. Members touched on housing. Access to genuinely affordable homes is absolutely essential. The current housing shortage is driving up rents, leaving some of the most vulnerable without access to a safe and secure home. We are reforming planning policy, but I will not try to cover that complicated problem in one minute. Last year, the Government ran a consultation on the national planning policy framework. The response to the consultation reflected on the higher costs of housing delivery in rural areas and the fact that we want more affordable housing in those areas as part of our ambition to deliver the biggest increase in social and affordable house building in a generation. We will consider how policy can better promote rural affordable housing and wider exception site policies as part of the work we do to introduce those policies later in 2025.
Hon. Members touched on energy costs, which are a huge challenge for rural areas. I am very aware that fuel poverty rates are higher in rural communities. Many homes are off the gas grid and are therefore more susceptible to fuel price fluctuations.
The hon. Member for South Devon asked about the index of rural deprivation report. I am told that it will be published later this year.
Chris Hinchliff (North East Hertfordshire) (Lab)
Will the Minister give way?
Daniel Zeichner
I am afraid I will not give way. I am very conscious that I will run out of time.
We will need to look at skills and opportunities in rural areas. I was very struck by the point that my hon. Friend the Member for Doncaster East and the Isle of Axholme (Lee Pitcher) made about schools. It was all too typical of my experience of the way rural communities often feel they are left out. We are planning to expand our childcare and early years system, drive up standards and modernise the school curriculum. We will boost rural and agricultural skills by reforming the apprenticeship levy into a growth and skills levy. We will also be opening new specialist technical excellence colleges to give rural people a chance to develop the skills they need to empower rural businesses to play a bigger role in the skills revolution.
The health service is a hugely important issue, and I very much agree with the point my hon. Friend the Member for Rushcliffe (James Naish) made about the 8 am scramble. He is absolutely right, and that is just as important in rural areas as anywhere else. His point about dentistry was very well made; it is being addressed, but much more will need to be done.
Demographics show that as people age, many move out of cities to coastal and rural areas. They will need more care, but they increasingly live in places where it is more difficult to provide it, and that needs to be reflected in the way we approach these issues. Integrated care systems will have a role in designing services that meet the needs of local people, but I heard the point about the algorithm; I will go away and look at that. Most importantly, we need to work with clinicians and local communities to ensure that we get those systems right.
Finally, local government is a huge issue that cannot be covered in one minute, I am afraid, but we are making available significant new funding. That includes £1.3 billion in the local government financial settlement for 2025-26, including £600 million to support the most deprived areas, including in shire districts, through the new recovery grant. Alongside that, our commitments can be judged against a guarantee that no local authority will see a reduction in its core spending power in 2025-26, after taking account of any increase in council tax. That will provide protections so that all authorities, including district councils, can sustain their services between years.
I am absolutely determined to drive forward the rural agenda across Government. This debate gives me some confidence that there is support across the House for that endeavour. I am absolutely determined that rural areas will play a key role in delivering the national missions the Government have set out and will share in the benefits they bring.
Sustainable Farming Incentive
Daniel Zeichner Excerpts(3 weeks ago)
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The Minister for Food Security and Rural Affairs (Daniel Zeichner)
With your permission, Mr Speaker, I would like to update the House on the sustainable farming incentive.
We stand on the edge of an unprecedented global transition for British farming. From leaving the European Union to the challenges of climate change and geopolitical events, we are asking more of farmers than ever before: to continue to produce the food that feeds the nation and to protect the environment on which our long-term food security depends. We are determined to create the conditions for farm businesses to be profitable and succeed. We are proud to have secured £5 billion for farming over two years: the largest budget for sustainable food production in our country’s history. That is £1.8 billion for customers already in agreements, £1 billion for farmers now in SFI agreements and a further £150 million for farmers in the SFI pilot.
Labour has got that money out of the door and into farmers’ pockets. We have invested it to bring thousands more farmers into environmental land management schemes, which were vastly underspent by the previous Government, to make a record number of capital items available for the coming year to help farmers carry out actions under the SFI and countryside stewardship, with £600 million available for productivity, animal health and welfare innovation, and other measures to support agricultural productivity, as well as 50 landscape recovery projects across the country. We have responded directly to calls from the sector to roll out a new higher-tier scheme, and to increase payment rates so that higher-level stewardship agreement holders—many of them upland farmers—are fairly rewarded for their work.
More than half of all farmers are now in schemes, with 37,000 live SFI agreements and 50,000 farmers in ELM agreements. Under the SFI, 800,000 hectares of arable land are being farmed without insecticides, 300,000 hectares of low-input grassland are managed sustainably, and 75,000 km of hedgerows are being protected and restored, which is a huge success for nature. I thank all farmers involved and reassure them that all existing SFI agreements will be honoured.
Farmers will continue to be paid under the terms of their agreement for its duration. If they entered into a three-year SFI agreement earlier this year, they will be paid until 2028. If they submitted an SFI application but this has not yet started, that will also be honoured. All farmers who took part in the SFI pilot will be able to apply for an agreement.
With the high uptake of the scheme, however, the fact is that it is now fully subscribed. This Government inherited SFI with no spending cap, despite a finite farming budget, and that cannot continue. We will continue to support farmers to transition to more sustainable farming models including through the thousands of existing SFI agreements over the coming years and a revamped SFI offer. But this is an opportunity to improve how we do that under a fair and just farming transition, which supports farms to be profitable businesses in their own right through fairer supply chains, better regulation and greater market access, and directs public funding in a fair and orderly way towards the priorities that we have set out on food, farming and nature. We will be strategic in how we design our schemes, and responsible within the available budget. This is about using public money in a way that supports food production, restores nature and respects farmers as the business people they are.
SFI can and must work better for all farms and for nature, and I will set out the details of the revised SFI offer following the spending review, including when it will open for applications. We will work closely with the sector to design an improved scheme so that they can tell us what works best for their businesses. We will also put in place strong budgetary controls so that SFI is affordable to the public purse. The revised offer will align with our land use framework to better target SFI actions fairly and effectively, focusing on helping less productive land contribute to our priorities for food, farming and nature.
The underlying problem facing the sector, however, is that farmers do not make enough money. The Government are changing that. [Interruption.] Opposition Members may laugh but businesses do need to make money; they might need to know that. We announced a new set of policies at the National Farmers Union conference last month aimed at improving farm profitability, securing our food security, and protecting nature. Through our farming road map, we are creating the conditions for farmers to run profitable businesses that can withstand future challenges.
This decision is about investing in long-term stability. It is about a future where farmers are supported to run profitable businesses, and where public money is used in a better way to better restore nature and to secure long-term food security.
Victoria Atkins (Louth and Horncastle) (Con)
I thank the Minister for an advance copy of his statement, which I am going to pull apart in a moment. I thank you as well, Mr Speaker, for granting the urgent question that forced the Minister to the Dispatch Box, because the Government sneaked this statement out last night, presumably hoping nobody would notice; but, guess what, the countryside has noticed, because the question we are all asking ourselves is: what have this Government got against farmers and the countryside?
They sneaked out this announcement that they were halting the sustainable farming incentive scheme immediately. The scheme replaced the EU’s common agricultural policy scheme when we left the EU. We set up this scheme with our Brexit freedoms to establish a farming policy that works for farmers, the environment and food production, yet Labour pulled the plug without warning last night.
The SFI scheme is popular with farmers, but the Minister does not have to take my word for it. To quote one:
“The…schemes have the potential to be the most progressive and environmentally responsible schemes of their kind anywhere in the world.”
Those are the words of the former president of the Country Land and Business Association, and father of the hon. Member for Mid and South Pembrokeshire (Henry Tufnell), who I am sure will agree with his father’s analysis. Why, then, would this city-dwelling Government stop such a successful scheme? In the words of the CLA president, Victoria Vyvyan:
“Of all the betrayals so far, this is the most cruel. It actively harms nature. It actively harms the environment. And, with war once again raging in Europe, to actively harm our food production is reckless beyond belief.”
Does the Minister think she is wrong?
The Secretary of State, by the way, is missing in action. This is a significant statement, yet he is sending out his junior Minister to take the heat. Perhaps it is because the Secretary of State did not want me to remind him of his own words in November, when he said that farmers
“feel ignored, alienated and disrespected”.
I do hope the Minister will tell us how that is going.
This Government’s farming policy can be summarised in three sentences. First, they will halt any farming and environmental scheme on which farmers rely without warning or consultation, using criteria they have never before defined. Secondly, the state will seize their farmland at will through the compulsory purchase orders that were announced yesterday in the Planning and Infrastructure Bill. Thirdly, if families have managed to cling on to their farms despite all that, then Labour will tax them for dying. However, I am delighted to hear that the Minister for farming himself can see that farmers do not make enough money—I hope he will be changing the family farm tax.
It all adds up to nothing less than an outright assault on the countryside. As a proud rural MP—someone who actually likes the countryside—I am already being contacted by constituents and farmers across the United Kingdom who have had the door slammed in their face with no notice, asking how they are meant to diversify, make a living and protect our countryside.
The Prime Minister has said he understood the significance of losing a farm, acknowledging that it “can’t come back”, and warned against “constantly moving the goalposts” for the agricultural sector, yet that is exactly what his Government are doing. The statement issued by the Government last night was a masterclass in Orwellian doublespeak. It says that the SFI scheme has “reached completion”. What criteria have they used? They have not set those criteria out before. The Government’s own website stated that up to six weeks’ notice would be given for the withdrawal of SFI. Why was that disregarded last night? Does the Minister recognise that, in doing so, this Government have betrayed the trust of the farming community yet again? How many farmers does his Department believe will now be caught out without an SFI agreement during the transition period of at least a year? Just as with the family farm tax, Labour has got its figures wrong.
The CLA has asked me to ask the Minister some questions. What are his Government’s ambitions for the two thirds of farmers in England who are not currently in environmental schemes? How much have the vast cuts to payments under the basic payment scheme saved his Department, and where has that money gone? How will the Secretary of State support upland farmers who were intending to move on to the sustainable farming incentive scheme?
Then, of course, there are the legal problems cause by last night’s announcement. How will the Government meet their legally binding environmental targets, given that they rely so heavily on the SFI scheme? I do hope that the Minister will be able to give us a good, clear legal analysis on the impact of the changes to SFI on internal market competition law between England and other devolved authorities.
Any words that the Minister uses about food security are meaningless in the face of this policy, particularly as we all know that this Government have been delaying consideration and grants of these applications since the general election. The figures that the Minister is using are wrong and the theory behind this policy is very questionable, yet the Government would have us all believe that he understands farming and the impact that this measure will have on farmers. Farmers are in despair.
My message to farmers is clear: we have got your back; we will help you, so please hang on in there for the next four years; we will axe the family farm tax; and we will sort out this shocking mess of SFI, to help build a bright future for British farming with British farmers.
Daniel Zeichner
Well, really! I had hoped that the shadow Secretary of State would understand how the schemes that her own Government created actually work. Let me explain the problem that we inherited—there are some on the shadow Front Bench who, I think, understand this better than her. This time last year, these schemes were undersubscribed; they are now oversubscribed. It is not a complicated thing to say that, when the budget is spent, a responsible Government responds to that. The budget is spent. [Interruption.] The budget has been spent and what we are doing in a sensible, serious way—[Interruption.] Conservative Members should actually be celebrating the fact that so many farmers are now taking up these schemes. I am confident that we will be able to sort out the mess that we have inherited. Basically, if you set up schemes without proper budgetary controls, you end up in this kind of position. We have had to take the hard decisions that the previous Government ducked.
Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)
Can the Minister confirm that environmental land management scheme agreements will remain in place under this Labour Government, including SFI, and that there will be a new and better targeted SFI on offer as soon as possible, with details to follow in the spending review?
Daniel Zeichner
I thank my hon. Friend for her question. She makes absolutely the right point. We should be reassuring people out there that farmers who are in schemes are absolutely safe and are carrying on as before, but the basic point is that when a scheme is full, it is full.
Tim Farron (Westmorland and Lonsdale) (LD)
I thank the Minister for advance sight of his statement. The closure of the SFI from 6 o’clock last night came without warning or consultation, and it constitutes the breaking of the Government’s word to farmers. Farmers are already losing their basic payment this year, but they are now excluded from the very scheme designed to replace that. Has the Minister not broken his word to farmers and to all who care about nature? Will he clarify how much money he will save from the BPS cuts this year and say that it is not true that SFI is overspent? Is it not true that when the BPS cut is taken into account, more than £400 million of the £2.5 billion farming budget will remain unspent? A bigger budget is pointless if we do not spend it. This money was supposed to reward farmers for nature restoration and sustainable food production. Does this not damage both?
There are 6,100 new entrants to SFI this year, yet only a mere 40 of them are hill farms. Because of the failure of the Conservatives in the previous Administration, the big landowners and the corporates are already comfortably inside the tent, but the farmers who are outside and now locked out without warning are Britain’s poorest farmers in beautiful places, such as mine in the lakes and the dales. As the Tories oversaw a 41% drop in hill farm incomes in just five years, is this not a bitter and unbearable blow for our upland farmers?
This betrayal will outrage everyone who cares for our environment, our upland nature and landscapes and it will outrage everyone who cares about food security and it will outrage everyone who cares about our tourism economy. It will also outrage everyone who clings to that old-fashioned expectation that Governments should keep their word. On Monday, the Secretary of State came to my beautiful constituency to pose for pictures by Windermere. I wonder whether he might come back tomorrow and face up to the farmers who steward the stunning landscapes around our beautiful lakes, and who he has abandoned so shamefully. Will he reopen SFI and honour his promises, or turn his back on the very people who feed us?
Daniel Zeichner
Again, I am disappointed in the hon. Gentleman’s comments. He is a thoughtful person, and he and I have debated these issues many times. I am sorry that he did not welcome the uplift in higher level stewardship payments, which he and many others have been asking to see for a long, long time and which will benefit upland farmers. I take him back to the many discussions that we have had about the importance of getting the farm budget out to farmers. That is what has happened. The full budget is actually being spent and that should be celebrated.
Alex Sobel (Leeds Central and Headingley) (Lab/Co-op)
The fruit and vegetable aid scheme is an important lifeline for our producers. Collaboration between producers has meant that we have had a huge increase in our tonnage of various fruit and vegetables. Given that the scheme finishes on 31 December 2025, what plans do we have to support further collaboration between fruit and vegetable producers in 2026 and beyond?
Daniel Zeichner
My hon. Friend asks an important question. This is, of course, an EU legacy scheme, and we are considering the best way of taking that forward in the future, but we are absolutely committed to supporting and working with the horticultural sector.
Madam Deputy Speaker (Ms Nusrat Ghani)
We have around 35 minutes remaining. Questions must be short and the Minister’s response must be on point and tight. I call the Father of the House.
Sir Edward Leigh (Gainsborough) (Con)
Will the Minister leave for a moment the hallowed cloisters of Cambridge and accept my invitation to take a rural ride through Lincolnshire, the breadbasket of England, to meet my farmers? Does he agree that sustainable farming is the key to food security, and therefore will he take up with his colleagues in the Department for Energy Security and Net Zero why they are covering 15% of Lincolnshire with solar farms in addition to taking away this grant?
Daniel Zeichner
I am grateful to the right hon. Gentleman for his question. I am always happy to visit Lincolnshire; I have done it on a number of occasions. But on the question of how we allocate our land, it is important that we ensure that the new land use framework works effectively, as that is the most rational way of making those decisions.
Ms Julie Minns (Carlisle) (Lab)
It is extremely welcome that, under this Government, more money is being spent on schemes and that more farmers are in schemes than was the case under the previous Government. However, there are smaller farms, such as those in my constituency in north Cumbria, that would not have had their plans as far advanced as their larger neighbours and their consultants. Can the Minister outline what support will be available to those small farms going forward?
Daniel Zeichner
My hon. Friend touches on the critical point. The schemes that we inherited had no way of prioritising properly; it was a first-come, first-served scheme. Therefore, the kind of farmers she describes were disadvantaged. We have had to work with a scheme that we inherited. I was very clear when I took over that we would not immediately overturn the existing system; we wanted to give people confidence about the future. However, when we come to redesign the scheme, we can design it better to address the issues that she has raised.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
I note the Minister’s complaint that he inherited an uncapped budget. Can he tell the House whether that was something that he just noticed on Monday, which meant that he had to close the scheme without warning on Tuesday? On 14 January, the director general from his Department in charge of food biosecurity and trade told my Select Committee:
“I do not think we can expect that every single farm will be viable but if we are talking about 92%, 93% having the opportunity of productivity improvement, that is what we are aiming for.”
In other words, the Government’s aim is to lose 7% to 8% of our farms. What will that figure be after today’s announcements?
Daniel Zeichner
I am always grateful to receive questions from the right hon. Gentleman, who chairs the Environment, Food and Rural Affairs Committee. Those figures on future farm viability go all the way back to the Agriculture Act 2020, when a serious attempt was made to assess future farm viability. That is why the Secretary of State and I are so determined to address those problems around farm viability. Farmers will not be supported forever by the public purse—we know that—so it is very important that we address the whole range of issues, but I am very happy to have a further conversation with him.
Sam Rushworth (Bishop Auckland) (Lab)
I am sure that the Minister shares my wish to see a bit more humility from Conservative Members, given their failure to get the agricultural budget out of the door. [Interruption.] I would ask the Minister—if I could hear myself think—to ensure that every penny in SFI arrangements will be paid to farmers, and also that those who have already applied and who are eligible for the scheme will have their applications taken forward.
Daniel Zeichner
I thank my hon. Friend for that question. I very much enjoyed visiting his constituency and talking to farmers there about these issues. I can absolutely give him that commitment.
Wendy Morton (Aldridge-Brownhills) (Con)
How does the Minister expect those who have farming businesses to plan for the future when he sneaks an announcement out like his Department did last night, despite a message on his website saying that they would give six weeks’ notice of any closure? What does the Minister have against our farmers and food producers?
Daniel Zeichner
The only thing I have anything against is the previous Government, who set up the scheme in the first place. They set it up in a way that meant that SFI ’22 and SFI ’23 were closed in exactly the same way. SFI ’24 is only different in one sense, in that it is now oversubscribed rather than undersubscribed. As a consequence, it would not have been possible to give notice because it would have led to a further spike in applications.
Alex Mayer (Dunstable and Leighton Buzzard) (Lab)
As the Minister has just alluded to, the scheme is called SFI ’24. Might there be a clue in the title that makes this less surprising than people are saying, given that it is now 2025?
Daniel Zeichner
I am grateful to my hon. Friend. She makes a sensible point, which is that we saw a succession of schemes announced by the previous Government. I want to get to a scheme that will work for the long term. My hon. Friend is absolutely right; the way the scheme was set up by the previous Government meant that it was first come, first served.
Mike Wood (Kingswinford and South Staffordshire) (Con)
The overnight withdrawal of the funding is yet another blow to many of my farmers in Kingswinford and South Staffordshire. The Minister still has not answered the question as to why he has broken his word, which was clearly set out on the Government website, to give at least six weeks’ notice, nor the one asked by the Chair of the Select Committee, the right hon. Member for Orkney and Shetland (Mr Carmichael), which was that if the reason for doing so was because the budget had become exhausted, when that first came to the Minister’s attention. Was it really yesterday afternoon?
Daniel Zeichner
It first came to my attention five years ago during the passage of the Agriculture Act 2020, when I warned that exactly that would happen. If we move from a basic payments system, where everyone has an entitlement, to a system that is based on bidding, that is what happens. Perhaps the hon. Gentleman should have woken up five years ago.
Cat Smith (Lancaster and Wyre) (Lab)
I thank the Minister for coming to the House to make a statement. However, I woke up this morning to many emails in my inbox from farmers across Lancaster and Wyre. I invite the Minister to join me, because I am going to accept the invitation from my constituent Cath to visit her farm. Her SFI application was ready to go as she was coming out of the countryside stewardship agreement. She has therefore been left in limbo. Will the Minister join me in meeting farmers across Lancaster and Wyre?
Daniel Zeichner
As I have said to many hon. Members, I am always happy to try and meet farmers whenever I can, and I will add my hon. Friend to my list. I absolutely understand her point, but there was a fundamental problem with the schemes as designed, which we inherited. We need to do better in future. That is what we will do as we redesign them.
Andrew George (St Ives) (LD)
What assurance can the Minister give farmers in my constituency? A site of special scientific interest has recently been designated in the Penwith area, which is supported by a recent designation of landscape recovery. We now seem to be in a position where there will be no support for that at all. How will my farmers adjust to the new regime, and what assurance can the Minister give them that the funding will be in place to support their actions in the SSSI?
Daniel Zeichner
There is some complexity in that question that I might need to address directly with the hon. Gentleman. Landscape recovery is absolutely not affected, so it depends on the exact nature of the application.
Markus Campbell-Savours (Penrith and Solway) (Lab)
Can the Minister confirm more about the timetable for SFI ’25 to provide some reassurance to my farmers in Penrith and Solway that we will deliver? Will he also explain a little more about how we can ensure that more of my hill farmers get into the SFI scheme, which the last Government failed to deliver on?
Daniel Zeichner
My hon. Friend’s question is important. We will work with farmers and organisations to redesign the schemes, and that addresses that very question. That will take place over the summer this year, and once we have had those conversations we will be able to announce exact timings. My hon. Friend is right to raise the point that there has been no fair allocation of resources; it has just been done on a first come, first served basis.
Charlie Dewhirst (Bridlington and The Wolds) (Con)
The Minister’s statement says,
“This decision is about investing in long-term stability.”
First, we had the body blow of the family farm tax, the reduction in BPS and the pulling of capital grants, and now we have the cancellation of SFI. How is any farming business expected to invest in the long term?
Daniel Zeichner
The hon. Gentleman is a sensible person and I have had many discussions with him over the years. When he says “pulling”, what he means is that the budget was completed. It is exactly the same in this case. I think it is important that Conservative Members understand that we cannot spend the same money twice. They lived in a world of cakeism; we do not. Once the money is spent, we have to move to a new set of schemes when the money is available.
Andrew Pakes (Peterborough) (Lab)
I thank the Minister for bringing the statement to the House and for showing such honesty about the challenges in the scheme. May I urge him not to take any lectures from the Conservative party, which oversaw chaos in the Department for Environment, Food and Rural Affairs and a £300 million underspend? That is a shameful record. Will the Minister assure the House that he will outline details to ensure that future schemes get the money out the door and into farmers’ pockets and stop the waste and bureaucracy that we saw under the previous Government in DEFRA?
Daniel Zeichner
My hon. Friend is absolutely right. I am afraid I was genuinely dismayed, but perhaps not entirely surprised, by what I found when I came into the Department. We have spent the last six or seven months trying to get control of the situation because if we have a scheme that is not capped or managed, or has no budgetary control, there is a problem. The figure of £5 billion overall is the biggest amount for farming that we have had. We will make sure the money gets out to farmers.
Sarah Dyke (Glastonbury and Somerton) (LD)
Coming at a time of record low confidence in farming, many farmers in Glastonbury and Somerton will feel that the sudden closure of the SFI scheme will bring them closer to closing their farm gates for the very last time, and at a time when food security is at an all-time low. What communications will go to affected farming businesses and what support will DEFRA give to those who are dealing with vulnerable farmers at the sharp end?
Daniel Zeichner
I do not agree with some of the hon. Lady’s question, because the food security report published at the end of last year did not bear out her analysis. The Rural Payments Agency has written to farmers today setting out exactly the situation to give people reassurance.
Perran Moon (Camborne and Redruth) (Lab)
Meur ras, Madam Deputy Speaker. Is the Minister surprised that the Conservative party is now crying crocodile tears when it failed to get £350 million of SFI out and into farmers’ hands and failed to stop speculative acquisition of farmland by tax dodgers?
Daniel Zeichner
My hon. Friend is absolutely right. I am afraid that, as on so many other issues, we have to clear up the mess that we inherited. That will take time. We are setting out a clear path to the future that, I hope, over time people will come to support.
Simon Hoare (North Dorset) (Con)
I do not know how to break this to the Minister: I do not know if he realises this, but when the thousands of farmers come to Westminster, they do not come to thank him or the Secretary of State. Yesterday, we had the sustainable farming incentive announcement. Today, there is an announcement that there is to be no extension to the fruit and vegetables aid scheme, as was mentioned by the hon. Member for Leeds Central and Headingley (Alex Sobel). That, of course, follows the family farm tax.
The Minister’s announcement today speaks very ill of the financial management of his Department. I make no apologies for repeating the questions asked by my right hon. and hon. Friends. When did the Minister know that he was hitting his budget ceiling? When had he set that as a criterion? What discussions has he had with the Treasury to increase the budget? Why was he deliberately, I presume, misleading farmers by pledging a six-week notice period, when it was not even six seconds?
Daniel Zeichner
I will take the hon. Gentleman back to the origins of this debate. When we moved from basic payments to these schemes, there was always going to be a point when the budget was spent.
Terry Jermy (South West Norfolk) (Lab)
Having spent several weeks and months encouraging farmers to access the scheme, naturally I am disappointed with the closure and hope that there will be a replacement in short order. However, is the fact that so many farmers in my constituency were not accessing the scheme not evidence that the Conservative party failed farmers over many years?
Daniel Zeichner
Many farmers are now in these schemes and are benefiting from them. We are also getting the environmental benefits that the whole transition away from basic payments to the environmental land management schemes was designed to achieve. Let me give some credit to the Opposition—they set this train in motion, but what they did not do was set up the schemes in a way that could properly be managed. That is what we are now doing.
Ellie Chowns (North Herefordshire) (Green)
Yesterday, the Government shamefully pulled the rug out from underneath thousands of farmers by cancelling the SFI with zero notice, despite saying that they would give six weeks’ notice, and without putting in place anything to support farmers in future. This morning, my inbox was full of emails from despairing farmers who were on the point of submitting an application, had no way of planning for this and now are utterly left in the lurch. How does the Minister expect the UK to make the vital transition to nature-friendly farming and boosting UK food production if this is how he treats farmers?
Daniel Zeichner
I am astonished by the hon. Lady’s contribution. She should be celebrating the fact that so many farmers are now farming in an environmentally sensitive way. I invite her to help us ensure that these schemes work better in future. This is actually a cause for celebration of the benefits of the environmental land management schemes.
Chris Hinchliff (North East Hertfordshire) (Lab)
I have also been contacted by concerned and impacted farmers in North East Hertfordshire. Will the Minister assure me that, for the remainder of this Parliament, the revamped SFI that he alluded to will allow farmers to plan seasons ahead, as they need to?
Daniel Zeichner
Clearly, over the past five years we have all known that this transition was happening. There was always going to be a point in the transition from basic payments to environmental land management schemes where it would be down to people applying for these schemes. I understand my hon. Friend’s concerns. I encourage farmers to apply early to these schemes. It was a first come, first served scheme before. In future, we will try to ensure that there is a better allocation process, but that is the system we inherited.
Adam Dance (Yeovil) (LD)
One of the key messages from farmers at the that forum that I held in my constituency was that they have lost trust in this Government and in investing in sustainable farming. Does the Minister recognise that ending SFI with no warning has only worsened the loss of trust? What plans do the Government have to restore Yeovil farmers’ confidence in this Government?
Daniel Zeichner
I hear the hon. Gentleman, but the fact that we have so many people in agreements, and so much land being farmed within them, shows that many people in this country have absolute confidence in what we are doing.
Greg Smith (Mid Buckinghamshire) (Con)
How on earth does the Minister correlate his statement that he wants to work with the sector with the Government last night giving just 30 minutes’ notice to the NFU—the sector—of this shameful cut to the SFI budget? What does that say about DEFRA’s previous commitment to transparency, co-operation and co-design?
Daniel Zeichner
This process has been going on for five years now. Perhaps the hon. Member should have looked a bit more closely at what was about to happen.
Carla Lockhart (Upper Bann) (DUP)
Trust between farmers and this Government is well and truly broken. Farmers feel betrayed and let down, and many are at breaking point. The closure of the SFI is a bitter and, I believe, calculated blow on top of the family farm tax grab. It will be the final straw for many British farmers—the people who feed us. How can the Minister justify sending over £500 million to farms in Africa, Asia and South America, while stripping support for our home-grown farmers?
Daniel Zeichner
I am grateful to the hon. Lady for her question, but I point out to her that this scheme relates to England. The different devolved Governments have different schemes. She asked about international aid. The key thing for us is to ensure that we support our farmers here, which is why we are spending a record £5 billion on farming over the next two years.
Martin Vickers (Brigg and Immingham) (Con)
The one thing in the Minister’s statement that farmers in my constituency would agree with is that they are not making enough money. When, as I hope, the Minister takes up the invitation from the Father of the House to visit Lincolnshire, will he meet my farmers face to face and explain to them exactly what his Government are doing to increase their profitability?
Daniel Zeichner
The hon. Gentleman and I have had many exchanges across the Chamber over the years. I would be very happy to speak to his farmers and to talk to him about the important work that we are doing on supply chain fairness.
Helen Morgan (North Shropshire) (LD)
Farmers in North Shropshire are really keen to improve the environment and farm in a friendly way, but they are also running businesses and they need to plan. There are farmers in my constituency who were hoping to apply for grants to raise the water table in peat soil areas, but had not yet applied because those grants were not yet open. Now, the opportunity is gone. What will the Minister do to enable farmers to plan, and what will the replacement scheme look like?
Daniel Zeichner
The hon. Lady raises an important point. SFI is only one part of the set of Department’s schemes to work with farmers on nature restoration. The Under-Secretary of State for Environment, Food and Rural Affairs, my hon. Friend the Member for Coventry East (Mary Creagh), has told me that £300 million is available for peat restoration, so other schemes are available.
Dr Luke Evans (Hinckley and Bosworth) (Con)
No notice and the scheme immediately closed. The Minister says it is full. When did he know that? Why did he not tell the farmers that it was going to happen?
Daniel Zeichner
I think there is still a misunderstanding about how these schemes work. If there is a first come, first served scheme and people have known for weeks and weeks—months—that it would be full at some point, there comes a time when we have to make a decision. If the Department is working within its budgets properly, it can hardly say a week or two before that suddenly it will close, because there will be a spike in applications. It is like a run on a bank. Basically, when the scheme is finished, it is finished.
Dr Roz Savage (South Cotswolds) (LD)
Nature, food, farming and farmers are the foundation of British life in every sense. This change is deeply regrettable. Can the Minister assure the House that every support will be given to farmers to adapt to these changes and to give them help with the technology that they do not have? They are already on their knees. Will the necessary support be given to stop them from buckling under the load of these successive changes?
Daniel Zeichner
I hear the hon. Lady, but I repeat that we have 50,000 farmers in ELM agreements. The majority of farmers are already working with us to make that change to environmentally friendly farming. It was never clear how many farmers overall would make the transition into the new schemes. Obviously, it is not a matter of compulsion. We invite people to apply, and they were invited last year. When the new scheme comes along, I will invite people to apply.
Mr Andrew Snowden (Fylde) (Con)
The Minister is ducking and dodging questions like a Poundland Alastair Campbell. He started out with, “We knew five years ago,” but that very quickly it turned to “just weeks ago”. He said that this is “cause for celebration”. I do not think that any of my farmers will be celebrating this. Will he come and say these things directly to my farmers’ faces and see the response that he gets? Does he really want to be a Minister that much that he is willing to say such ridiculous things? He can find money for lots of other projects. He should come to Fylde and speak to the farmers.
Daniel Zeichner
I was going to say that I was grateful for the hon. Member’s question, but I am not sure that I am. I invite him to come and talk to people who are engaged in nature-friendly farming, who benefit from these schemes and who are undertaking the transition, for which I give the previous Government credit for starting. We wanted to move away from the common agricultural policy to a new system. That is what we are doing. The schemes were not designed well enough, and we are now addressing that.
Vikki Slade (Mid Dorset and North Poole) (LD)
I was contacted by members of the Great Big Dorset Hedge initiative three weeks ago, who told me that capital grants under SFI had already been frozen. Can the Minister confirm when the decision to close was actually made, whether applications submitted will be granted and how long applicants will have to wait? As farmers are already obliged to improve hedges with more than 10% gaps under their agreements, how will they access funding to do so to enable their existing funding to be maintained?
Daniel Zeichner
The hon. Lady raises an important set of points. We now have 75,000 km of hedgerow within these schemes. The basic point is that we have a fixed budget and, just as with the capital grants, when they are spent, they are spent. Another set of grants will be available, and I invite her constituents to apply at that point. We cannot get away from the fact that there is not an endless supply of money. We have to work within the budgets.
Sir Julian Lewis (New Forest East) (Con)
I understand the Minister’s point that it has been known all along that at some point the fixed budget would be exhausted. A simple question for him: on which day were Ministers first informed that that budget had been exhausted?
Daniel Zeichner
We made the decision yesterday because we reached that point.
Caroline Voaden (South Devon) (LD)
It is beginning to feel a little like a game of Top Trumps in who can cause the most financial unpredictability to farmers, be it through the botched ELMS roll-out or the cancellation of this scheme at a moment’s notice. Half of Britain’s fruit and veg farmers expect to go out of business. The Minister says that he will support farmers to be profitable through fairer supply chains, but will he explain what that will look like?
Daniel Zeichner
I am grateful to the hon. Lady for that very big question. I point her to the fair dealing powers in the Agriculture Act 2020, some of which have already been brought forward in the dairy sector, and we will be working on the pig sector soon. Basically, sector by sector, we are trying to sort out the improvements that are needed to get fairness throughout the supply chain. That is a big, difficult and complicated question, but it is essential for the future.
Sir Geoffrey Clifton-Brown (North Cotswolds) (Con)
The announcement was sneaked out with no notice last night. If the Minister knows anything about farming, he will know that it takes months, if not years, to plan. Farmers had no notice of this. Will he tell us what will replace the SFI, when he will consult, and when it is likely to come into operation?
Daniel Zeichner
Over the next few months, through the spending review, we will review how we can improve the scheme to avoid the very point that the hon. Gentleman has just made, and I will report back to the House later in the summer.
Ben Maguire (North Cornwall) (LD)
I met young farmers at Duchy College in North Cornwall last week, and it was clear that confidence in the farming sector is at an all-time low, with many looking for alternative careers. In the light of the Government’s hammer blow to SFI payments, on top of the family farm tax, how does the Minister plan to incentivise young people to get into farming, now that they face huge tax bills upon inheriting their family farms and will no longer be incentivised to undertake environmental stewardship and sustainable farming?
Daniel Zeichner
I completely disagree with the premise of the question, as the hon. Gentleman will probably realise. He is right to say that we need generational change in farming, and there are a number of ways in which that can happen—
Daniel Zeichner
I am not laughing. This is a very serious point. I am genuinely concerned about the future of the farming sector if we do not get generational change. We will look closely at how we can do that. The £5 billion budget that we secured was a very good first step for stability.
Jess Brown-Fuller (Chichester) (LD)
Farmers in Chichester are exhausted by the ever-changing schemes and the time it takes to apply for them. Imagine their surprise when they found out that the SFI scheme had been closed, not with no notice—I think that is unfair—but with the NFU given 30 minutes’ notice, as opposed to the six weeks that it was promised. At a time when BPS schemes are being significantly reduced, what communication and support will be provided to the family farms that have missed out on this round of SFI funding?
Daniel Zeichner
It should have been clear to people for a long, long time that this transition was coming. It was the move away from a system based on entitlements for every farmer through the basic payment scheme to a system that relied on people applying to what was essentially a fixed budget. I agree with the hon. Lady and many other Members that the way the system was set up did not allow for proper prioritisation or fairness in allocation. That is what we would like to change in future, but it is the system that we inherited, and I am afraid that that is where we are at the moment. The House should remember that the majority are already in schemes, and to those who have not yet come forward, I gently say for the future that the advice in these kinds of schemes is that it is better to apply early rather than to wait.
Steff Aquarone (North Norfolk) (LD)
The sudden completion of the SFI scheme will be a worry for many farmers and local people. I am also very concerned by reports that the NFU was given only 30 minutes’ notice on such a huge change. To give my local farmers the confidence that they need, can the Minister assure them that DEFRA will learn lessons from the poor communication and lack of clarity that have plagued this and past initiatives?
Daniel Zeichner
Let me repeat the point: this is not about communication. If we suddenly say that a scheme with a fixed amount of money in it will close in two or three weeks, we would get a surge in applications and have to close it the same day. That is a flaw in the way the scheme was originally designed, and we want to do better in future.
Dr Danny Chambers (Winchester) (LD)
International events have pushed national security right up the agenda, and I am sure that we have cross-party acknowledgment that food security is a vital part of national security. Given the changing geopolitical situation, has an impact assessment been undertaken on changes to and stressors for family budgets and cash flow, such as the removal of SFI, and their effect on food security?
Daniel Zeichner
The hon. Gentleman makes an important point. I refer him to the food security report. There has been no change to the amount of money available. The £5 billion budget is there; this is a discussion about who gets it.
John Milne (Horsham) (LD)
Will the Minister explain to farmers in Horsham why he did not feel any need to consult any farming stakeholders in advance of this announcement?
Daniel Zeichner
Again, I refer the hon. Gentleman to the point that I made earlier. If we started a consultation on a first come, first served scheme, everybody would apply that day and we would have to shut it at that point. That is a flaw in the way the scheme was designed.
Jim Shannon (Strangford) (DUP)
The Minister is much liked in this Chamber, as we all know. However, it is disappointing to hear that new applications for the sustainable farming incentive have been paused in England. It is understandable that that is seen as a betrayal by so many farmers. Agricultural support is different in Northern Ireland, but the funding comes none the less from central Government. Will the Minister assure me that funding for Northern Ireland farmers, which comes from here, will not be reduced or falter as a result of today’s announcement, and that steps will be taken to protect our agriculture industry and our farmers, who are the backbone of our economy?
Daniel Zeichner
I thank the hon. Gentleman for his kind words, and I suspect that we shall renew our acquaintance in Westminster Hall this afternoon. I can assure him that this announcement will make no difference to the funding arrangements for Northern Ireland.
Sustainable Farming Incentive
Daniel Zeichner Excerpts(3 weeks ago)
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The Minister for Food Security and Rural Affairs (Daniel Zeichner)
With record numbers of farm businesses in farming schemes and the sustainable farming budget successfully allocated, yesterday the Government stopped accepting new applications for the sustainable farming incentive (SFI24).
Our environmental land management schemes will remain in place, including SFI, and there will be a new and improved SFI offer with more information in summer 2025.
Every penny in all existing SFI24 agreements will be paid to farmers, and outstanding eligible applications that have been submitted will also be taken forward.
Our vision is for a sector with food production at its core because food security is national security. We want farm businesses to be more resilient to shocks and disruption, and an agricultural sector that recognises restoring nature is not in competition with sustainable food production but is essential to it.
By pursuing these principles, we will support farm businesses to be more profitable, addressing the underlying problem that some farmers do not make enough money for the hard work they put in.
This Government inherited farming schemes which were underspent, meaning millions of pounds were not going to farming businesses. This Government are proud to have secured the largest budget for sustainable food production in our country’s history, with £5 billion over a two-year period to sustainable farming and nature recovery.
We have left no stone unturned in our determination to get farmers into our environmental land management schemes. As a result, we now have a record number of farmers in these schemes with more than 50,000 farm businesses and more than half of all farmed land now being managed under our schemes.
The largest of these schemes, SFI, now has more than 37,000 live agreements in place. It is not only delivering sustainable food production and nature’s recovery for today and the years ahead, but putting money back into farm businesses.
However, this Government inherited an uncapped scheme aimed at mass participation of farm businesses, despite a finite farming budget. The high level of participation in SFI means we have now reached the upper limit.
Now is the right time for a reset: supporting farmers, delivering for nature and targeting public funds fairly and effectively towards our priorities for food, farming and nature.
We will take forward any submitted SFI application where the agreement has not yet started. If farmers have already submitted an application, they will receive an agreement. If farmers are in the SFI pilot, they will be able to apply when the pilot agreement ends.
The reformed and improved SFI will:
Deliver our vision of a sector with food production at its core, supporting less resilient farm businesses while ensuring nature recovery;
ensure we deliver value for money for taxpayers as we invest in sustainable food production and nature recovery;
have a clear budget set and put in place strong budgetary controls so that SFI is affordable;
better target SFI actions fairly and effectively, focusing on helping less productive land contribute to our priorities for food, farming and nature.
As we evolve the scheme, we will listen to farmers’ feedback to ensure we learn and improve for the future.
Our improved SFI scheme will be another step in this Government’s new deal for farmers to support growth and return farm businesses to profitability. In recent weeks we have already:
Extended the Seasonal Worker Visa Scheme for five years.
Outlined plans to back British produce across the public estate.
Protected farmers in trade deals.
Invested £110 million in farming grants to improve productivity, trial new technologies and drive innovation in the sector.
Made the supply chain fairer, including new regulations for the pig sector by the end of this month.
Invested over £200 million in a new National Biosecurity Centre to protect livestock from diseases.
The Government are committed to working with farmers and farm organisations to ensure future policies deliver in the best interests of farming for the long term. For instance, we are developing the first-ever long-term farming road map to understand the barriers facing farmers and identify ways to reform the farming budget so that it can best deliver for food production and the environment.
The land use framework will guarantee our long-term food security and future-proof our farm businesses, supporting economic growth on the limited land we have available.
I will be making an oral statement on this subject later today.
[HCWS514]
Points of Order
Daniel Zeichner Excerpts(3 weeks ago)
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Madam Deputy Speaker (Ms Nusrat Ghani)
I am grateful to the right hon. Member for giving notice of her point of order. The Chair is not responsible for the accuracy of Ministers’ statements in the House, but she has put her point of order on the record. I do not believe that the Minister wishes to respond—
Support for the Scotch Whisky Industry
Daniel Zeichner Excerpts(1 month, 3 weeks ago)
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Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
The Minister for Food Security and Rural Affairs (Daniel Zeichner)
It is a pleasure to serve with you in the Chair, Dame Siobhain. I thank the hon. Member for Moray West, Nairn and Strathspey (Graham Leadbitter) for securing the debate and providing such an excellent and thorough introduction. I commend my hon. Friends the Members for Paisley and Renfrewshire North (Alison Taylor) and for Livingston (Gregor Poynton) on their contributions. I am sure that they will all be delighted to hear how much I enjoyed my visit in the summer to the Glendronach distillery in Aberdeenshire.
The Government recognise and celebrate the global success of the Scotch whisky industry, which is of historical and cultural significance and plays a huge role in the UK’s economy and balance of trade. In 2023, exports of Scotch reached almost £6 billion in value. That success comes from the industry’s well-earned reputation for quality and high standards, and we are committed to working with the industry to champion and protect that reputation.
Douglas McAllister
The Scotch whisky industry supports 41,000 jobs across Scotland, many thousands of which are in my West Dunbartonshire constituency, including at Chivas Brothers in Dumbarton and Auchentoshan in Clydebank. The October Budget backed Scottish whisky, introducing measures called for by the industry, and I welcome the Government’s move to address long-running discrepancies in the treatment of the Scotch whisky industry by ending duty stamps, and to reduce and deliver parity in the fees for the spirit drinks verification scheme. Can the Minister share when details of that very positive announcement on reduced fees will be confirmed?
Daniel Zeichner
I will come to the Budget measures in a moment, but first I endorse my hon. Friend’s point about the number of jobs the industry supports—41,000 in Scotland and a further 25,000 across the rest of the UK, many in rural areas.
Collectively, whisky distilleries are now Scotland’s most visited tourist attraction, bringing in thousands of domestic and international tourists every year, largely to rural areas, and creating many opportunities for employment. Whisky is also a hugely important trade good. In 2023, the equivalent of 53 bottles of Scotch every second were sold overseas. That is important to delivering growth at home, which is why we are committed to supporting the Scotch whisky industry to export its fine products to overseas markets. We do that by leveraging free trade agreements and removing barriers to market access across the world. We are currently working on no fewer than 29 markets.
Wendy Chamberlain
It is important that we recognise, particularly when we look at the US, that exporting Scotch is not the only challenge. The Scotch whisky industry needs ex-bourbon casks to produce the whisky we all know and love. Does the Minister agree that the Government need to ensure that conversations with the US Administration take place? Otherwise, our supply will be impacted.
Daniel Zeichner
I am grateful to the hon. Lady. We are well aware of the importance of those casks to the industry and their value.
As well as working with Governments overseas to increase market access, we work closely with the industry at home to catalyse its ability to reach export potential. We offer a wide range of support for businesses that want to start exporting or to expand into new markets, as well as a compelling programme of trade shows and events to support Scotch whisky exporters to access new markets, build buyer connections and increase marketing in target countries. We also have a network of international trade advisers offering one-to-one support across England, and teams with embedded sector expertise in Scotland, Wales and Northern Ireland. Overseas, we have a network of trade advisers and international market teams supporting agriculture and food and drink businesses in more than 100 markets, supplemented by a network of 15 highly skilled agricultural attachés focusing on removing trade barriers in key markets. We are aware of the challenges faced by Scotch whisky in international markets and we work closely alongside their representatives.
Officials across Government are working on trade deals and breaking down export barriers to ensure that Scotch whisky is traded on a fair playing field and has opportunities to grow in new and expanding markets. An important part of that work is securing geographical indication status in major export markets, to add to Scotch whisky’s domestic protection. The status is a special form of protection that defends the iconic product from imitation and counterfeiting. Last August, the Government were pleased to announce our role in securing this form of protection in Brazil, a country which is in the top five global growth markets for alcohol, and is worth almost £900 million in Scottish exports.
In the Budget a firm commitment was made to support spirits producers by, among other measures, investing up to £5 million in the spirit drinks verification scheme, which will reduce the fees paid by businesses for verification of their use of the Scotch whisky geographical indication, and go towards upgrading the overall verification scheme the Government provide. The specifics on how the funding will be used to improve the service will soon be announced by His Majesty’s Revenue and Customs.
Mr Angus MacDonald (Inverness, Skye and West Ross-shire) (LD)
The share price of Diageo is down by two thirds, that of Pernod Ricard has halved—the whisky industry is in a difficult place. In the Budget, the duty added to a normal bottle was 32p, taking the total duty on a bottle of spirits up to £9.18. Does the Minister not think that we are plucking the golden goose once too often?
Daniel Zeichner
I hear those concerns. We are addressing a whole range of financial issues across the economy, and we think this is a fair and balanced approach.
To continue outlining some of the measures that we have taken to support the industry, we have announced measures to reduce business costs and encourage growth. We will be doing away with the alcohol duty stamp scheme from 1 May. About 3,500 spirits producers, bottlers and labellers will no longer need to comply with the duty stamp requirements, saving an estimated £6.5 million annually.
We will also simplify the administration of alcohol duty, reducing burdens and supporting growth. From March 2025, HMRC’s arrangements for duty returns and payments will be reformed, supported by a new online service. Additionally, reform of the production approvals required by spirits producers means that many will no longer be required to operate separate excise warehousing facilities for the storage, bottling and labelling of their own products.
The industry has always been innovative in sustainability practices. That is reflected in the strategy developed by the Scottish Whisky Association, supported by the UK Government as we strive to develop a more circular economy. The strategy involves a number of packaging reforms, such as the deposit return scheme and extended producer responsibility. We genuinely believe that this partnership working toward a common outcome will help us all to achieve wider sustainability goals.
We are aware that some distilleries in Scotland have struggled in recent years with delays and limitations to connection with the national grid, creating a barrier to growing their businesses. Reducing electricity network connection timescales and expanding network capacity to connect and to power businesses are both top priorities for the Government. We are working closely with Ofgem and the National Energy System Operator to accelerate network connections. The newly announced mission control for clean power 2030, alongside planning reforms to speed up infrastructure development, will play a vital role in unlocking grid connection delays for Scotch whisky distilleries, especially those in rural areas.
I thank the hon. Member for Moray West, Nairn and Strathspey again for securing this debate. In the contributions today, we have heard Members’ passion for this vital and important industry in Scotland and the wider United Kingdom. We have also demonstrated the strong support the UK Government are giving the Scottish whisky industry by listening to and acting on the industry’s concerns, and by working collaboratively toward common goals.
Question put and agreed to.
Oral Answers to Questions
Daniel Zeichner Excerpts(1 month, 3 weeks ago)
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Mr Peter Bedford (Mid Leicestershire) (Con)
The Minister for Food Security and Rural Affairs (Daniel Zeichner)
Under the Animal Welfare (Licensing of Activities Involving Animals) (England) Regulations 2018, anyone in the business of breeding and selling cats as pets needs to have a valid licence issued by their local authority, and licensees must meet strict statutory minimum welfare standards, which are enforced by local authorities.
Mr Bedford
As a proud cat dad to two cats, one of which was beaten to the title of Purr Minister by Attlee, Mr Speaker’s cat, it has amazed me to find out that the 2018 regulations on animal breeding focus merely on dogs and not cat breeding. Can the Minister therefore assure me that he will look at updating the regulations to include cats?
Daniel Zeichner
I thank the hon. Member for his question and for his references. The Animal Welfare Committee has provided its opinion on the welfare implications of current and emergent feline breeding practices, and we will be looking at those and coming back with measures in future. In passing, may I pay tribute to organisations such as Cats Protection, which does such wonderful work? I am told that it recently pointed the Minister, my hon. Friend the Member for Kingston upon Hull West and Haltemprice (Emma Hardy), to her new kittens, Lily and Meglatron.
Bell Ribeiro-Addy (Clapham and Brixton Hill) (Lab)
There are 12.5 million cat owners in the UK, and hundreds of thousands of cats are killed on the roads every year. The previous Government agreed that it would be right to include cats in the Road Safety Act 2006, but they simply did not do it. This means that cats are regularly hit and, because there is no legal duty to report it, are just scooped to the side of the road. Does the Minister agree that this is something that we should do to bring parity to cats and dogs when it comes to safety on the road?
Daniel Zeichner
This is an issue that has been widely discussed. Our advice is that it would be difficult to enforce in practice, but I fully recognise the distress and concern that it causes.
Edward Morello (West Dorset) (LD)
The Minister for Food Security and Rural Affairs (Daniel Zeichner)
I thank the hon. Gentleman for his question. The Secretary of State set out our vision to boost farmers’ profitability and sustainability in our plan for change when he spoke to the 2025 Oxford farming conference. That includes a cast-iron commitment to food security, a £5 billion agricultural budget over the next two years, a boost to profitability by making the supply chain fairer and protecting farmers in trade deals.
Edward Morello
Farmers in West Dorset are struggling with rising costs, the regulatory burden, market instability and supermarkets paying unsustainably low prices for what they produce. This forces many farmers to diversify away from food production in order to survive. Given the vital role that farming plays in both our rural economy and in food security, what specific measures will the Government introduce to stop the need for diversification and ensure that farming remains a financially viable and attractive industry for the next generation of West Dorset farmers?
Daniel Zeichner
The hon. Gentleman makes an important set of points, but I point him to the speech that my right hon. Friend the Secretary of State made at Oxford, because he made the very strong point that farming needs to get a better return for the hard work that farmers do. Alongside that, diversification is important to allow people to get through the difficult times, which inevitably come up in a cyclical business such as farming.
Euan Stainbank (Falkirk) (Lab)
The increasing demand for biofuel feedstocks offers a huge opportunity for agriculture, particularly in feedstocks for sustainable aviation fuel. With the welcome SAF mandate and revenue certainty mechanism, there is a real chance for growth in this area, especially if we support rapid conversion at Grangemouth. What steps is the Minister taking to secure a scalable supply of feedstocks, and how he will remove barriers to their use in the production of SAF?
Daniel Zeichner
My hon. Friend makes a very important point, but we need to make sure that we get the right balance between producing food and using our land for other purposes. That is why it is so important that a land use framework was brought forward. We have a consultation going on for the next 12 weeks, and I am sure that he and others will contribute to it.
Dr Neil Hudson (Epping Forest) (Con)
To have growth in agriculture we need healthy animals, and for that, farms need biosecurity. Crucial to that is the Animal and Plant Health Agency, which deserves our thanks in these challenging times. With the alarming recent foot and mouth outbreak in Germany, avian influenza again surging, bluetongue still with us and African swine fever at our doorstep, we must act urgently. Please can the Government release the further necessary £1.4 billion to redevelop the APHA headquarters in Weybridge? The programme was started under the Conservatives, with £1.2 billion committed in 2020. For the sake of agriculture, animal health, rural mental health, biosecurity and national security, please will the Minister act now?
Daniel Zeichner
The hon. Gentleman makes an important set of points about the biosecurity needed to protect our country. Over the past few weeks we have had a series of questions across the Dispatch Box about the foot and mouth outbreak in Germany and avian influenza. We have had this discussion about the investment in Weybridge, and I am delighted that this Government have brought forward a £280 million investment there. Of course, we need to do more in future, but what on earth were the previous Government doing over the past 14 years?
David Reed (Exmouth and Exeter East) (Con)
The Minister for Food Security and Rural Affairs (Daniel Zeichner)
The truth is that confidence among farmers has been far too low for far too long. That is why this Government are setting out the sustainable long-term plan for farming. Again, I point people to the Secretary of State’s address at the Oxford farming conference. We will continue to progress our priorities over the coming weeks.
David Reed
Farmers across Devon are rightly concerned about Labour’s planned changes to agricultural property relief and business property relief, particularly the serious impact on family farms and on the sustainability of rural communities. In early December I wrote to the Secretary of State to invite him to meet Devon’s farming community, at an event to be organised in conjunction with the NFU in Devon, to provide clarity on the policies’ objectives and to address their concerns. I am yet to receive a response. I ask him directly now: will he come to Devon, meet local farmers, and explain how these policies will not undermine their livelihoods and the future of British farming?
Daniel Zeichner
I thank the hon. Member for his question, which is one that I have been asked at the Dispatch Box many times over the past few weeks. I have been to meet farmers in Cumbria, and last week I met farmers in south Cambridgeshire. I would love to meet farmers in Devon, so I am happy to add him to the list for my grand tour across the country to reassure people that there is a strong plan to ensure that farmers have a viable future, which they did not have under the last Government.
Mr Speaker
On that point, when Ministers make such tours, I hope that they will ensure that local MPs are made aware of the fact, because that did not happen in my case.
Bill Esterson (Sefton Central) (Lab)
The Minister for Food Security and Rural Affairs (Daniel Zeichner)
Over recent weeks we have announced a series of reforms delivering on the Government’s new deal for farmers, ensuring that, in line with World Trade Organisation rules and domestic procurement rules, we can ensure that procurement is used to back British farmers.
Bill Esterson
Farmers and growers in my constituency want to sell to hospitals and schools, but over the past few years they have found that increasingly difficult, not least because of the procurement chapters in the trade agreements that were concluded by the Conservative Government. Will my hon. Friend confirm that, under this Government, growers and farmers will be able to sell to public bodies and play their part in keeping Britain fed?
Daniel Zeichner
My hon. Friend is absolutely right; there is a real opportunity here, with £5 billion of purchasing power in the public sector, so we are looking at ways of ensuring that happens. It was a real surprise for us to find that the previous Government had not even measured the amount that was being bought—that is the starting point. We will start to make that happen, and we will get that huge opportunity for British farmers.
Rishi Sunak (Richmond and Northallerton) (Con)
I welcome the Government’s focus in this area. One of the barriers that small agricultural businesses in my constituency face in supplying the public sector is the complexity of the contracting process. The Crown Commercial Service made significant improvements to its portal last year, but I urge the ministerial team to build on that progress to make it easier, particularly for small companies, to provide food to the public sector. Ultimately, we all want to see more of that.
Daniel Zeichner
I am grateful to the right hon. Gentleman not only for his question, but for his interest in and attendance at DEFRA questions—we are honoured to have him here. I am very happy to look at what he suggests and to work towards making those proposals work. We know that it is complicated within World Trade Organisation rules, but there is a real prize to be had here.
Darren Paffey (Southampton Itchen) (Lab)
Nick Timothy (West Suffolk) (Con)
I refer the House to my entry in the Register of Members’ Financial Interests. Thoroughbred horses are high-health, high-welfare animals, and they should be treated as such to allow cross-border travel without physical border checks. Can the Minister commit today to recognise their high-health status, put welfare first and reduce this barrier to trade?
The Minister for Food Security and Rural Affairs (Daniel Zeichner)
My near neighbour raises an important point—this is a very high-value sector. A commitment was made to designate thoroughbred horses as high-health animals as part of the border target operating model, and we will provide an update on the timeline for implementation by the end of the summer.
Perran Moon (Camborne and Redruth) (Lab)
Mr Alistair Carmichael (Orkney and Shetland) (LD)
May I take the Secretary of State back to the subject of illegal meat imports? On Tuesday the Select Committee was told that at Dover this work, which covers only 20% of arrivals, is being done in live lanes, despite the fact that there is a border control post at Dover that is sitting unused, and the funding for Dover Port Health Authority is due to expire at the end of March. Can we at the very least sort out the financing of this for the next financial year?
Daniel Zeichner
I thank the Chair of the Select Committee for his question. The issues at Dover are significant and long-running. The funding was not resolved ahead of the general election, and there is an ongoing discussion. We are very aware of the challenges, but we are on it, and we will make sure that we are talking to those at Dover Port Health Authority.
Jacob Collier (Burton and Uttoxeter) (Lab)