Delayed rural funds spark farmer scepticism

The cash could be arriving as soon as the December Scottish budget following assurances given at meetings NFU Scotland held with Deputy First Minister John Swinney MSP and Secretary for Finance Shona Robison in June and July this year. So far the Union have stated that £15m has already been clawed back into the 2024 budget in 2024.

Tuesday's Holyrood announcement swiped a relatively light £1.4m from the rural portfolio compared to the total of £500m out of public funds. However there was no mention of the promise to return the cash to the rural budget.

The tight tightening of the government's purse strings alongside a lack of any public commencement on when and how the money will be returned is leading to many in the industry to question the validity of the Ministerial assurances.

The gap in the rural budget started when the Scottish Government’s Emergency Budget Review in 2022 cut £33m of agricultural support funding, which was blamed at the time on the cost-of-living crisis. Months later, Shona Robison gave a 'categorical assurance' that it would be returned.

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Last year, over £45m was slashed from the rural budget, according to a letter from Shona Robison, who was the Deputy First Minister at the time. Again, promises were made to return the funds, with Cabinet Secretary for Rural Affairs Mairi Gougeon assuring farmers that the money would be returned to the portfolio at AgriScot’s Q and A session in November 2023.

Speaking to The Scottish Farmer this week, a Scottish Government spokesperson said: “We are committed to ensuring no cliff edges in support as we enable our producers to undertake their essential role in helping to feed the nation and deliver for climate and nature. Ministers have made repeated assurances that the £46 million ring-fenced funding will return to the rural portfolio.

“This is ring-fenced funding, which means it has to be returned, and the remaining deferred funds will be returned in full, to be spent on the right agricultural priorities at the appropriate time.”

Despite these promises, the vast majority of the funds are still outstanding, which has prompted four former NFU Scotland presidents to criticise the Scottish Government and call for clarity on when the money will be returned.

Former Union President Andrew McCornick said: “Farmers and Crofters should not believe they have got off lightly with the Scottish Government's massive cuts made across the board by the Finance Minister. She has already dipped into the ring-fenced funding allocated to the industry and made what now sound like hollow promises on returning it in full sometime. This looks empty on the back of £115.8m taken from the Health and Social Care budget alone.

“More fundamental is that there is no budget allocated for the new agricultural policy that is being developed. Promises of 70% of the budget allocated to tiers 1 and 2 mean nothing—70% of what? It is hard to take anything from something that doesn't exist.”

Former Union President Nigel Miller said: “The Scottish Government owes the industry a full explanation and needs to set out a programme to show how the budget shortfalls will be addressed and reach farming businesses. We need assurance that the money will directly benefit farming businesses. We cannot have the budget siphoned off to another linked project that doesn’t reach grassroots.

“At the moment, farmers are making big decisions on their farms with projects like slurry stores, infrastructure, or renewables, which could drive the industry forward if there was investment. We should be looking at projects like collaborative AD facilities for intensive livestock areas and other investment opportunities. This would benefit the industry and wider society as it strives for a higher quality environment and moves towards net zero.”

Former MSP and Union President George Lyon said: “Shona Robison’s promise was nothing more than warm words that are never likely to be fulfilled. Clearly, agriculture is a pretty low priority for the Scottish Government.”

Former President Jim Walker said: “It was clear when the Ag budget was raised to pay for the Scottish Government’s mismanagement of the economy that, despite the assurances of the First Minister at the time, this money was gone forever. This latest damning indictment of the woeful economic record of this government merely confirms what we already knew—politicians are habitual promise-breakers.”

NFU Scotland Director of Policy Jonnie Hall said: “Since a total of £61 million was removed from the Scottish agricultural budget in 2022 and 2023, NFU Scotland has been relentless in its efforts to have those funds returned so they can be used to support and drive efficiency and profitability at farm and croft level.

"We know £15 million was returned in the current budget year. Whilst yesterday’s budget statement made no reference to the return of the funds, official meetings with Deputy First Minister John Swinney MSP in late July and Cabinet Secretary for Finance Shona Robison MSP in June saw both provide further reassurances that funds removed from the agricultural budget will be returned in the Scottish budget in December 2024.”