It looks like the public finances are again under pressure, as government departments are forced to rein in spending to balance the books. If the government is to fund civil service pay rises, then the money will need to be found somewhere. Unfortunately, bigger wages is something many farmers and crofters struggle to see reflected in their own bank accounts.
Despite the culture of cuts, we continue to receive assurances and promises from Scottish Government Ministers that the ‘mission millions’ are heading back to the rural budget. For two years running we have seen tens of millions of pounds wiped off the rural budget, and only had £15m back, according to NFU Scotland.
It is vital that we continue to campaign to ensure politicians do what they say, and say what they do, so The Scottish Farmer will be scrutinising all announcements from Edinburgh and London with meticulous care.
It appears these assurances are being delivered to the Union in their summer meetings with the government, but we are yet to see any public declaration beyond vague pledges. On the other hand whenever the Scottish Government feels shortchanged by Westminster, it is the first to cry foul and blame London.
As Nigel Miller points out, the industry is crying out for investment to support the rural community, environment, and generate much-needed income from economic activity. Support for new infrastructure is one of the best ways to secure commitment to the industry. Investment in items like new sheds and slurry stores makes it much more likely the cows will be needed to fill them. But this takes serious investment, not the peanuts given to the recent sustainability scheme which saw few farmers have the enthusiasm to start the form filling.
Some farmers, faced with massive upgrade costs and threadbare profits, are threatening to throw in the towel, as the cost of farming becomes simply too high.
It’s not just Holyrood slashing budgets; Westminster is cutting the nature-friendly farming budget by £100m, affecting 239,000 hectares, according to the RSPB. While the nature charity and farming might not always see eye-to-eye, any money lost from the rural economy is unwelcome. This was always the risk when former Defra Secretary Michael Gove and former NFU President Minette Batters colluded to wind down direct payments. Once the direct link to farm businesses is lost, it becomes harder to argue that the rural portfolio is vital to underpin rural communities. Salami slicing budgets can then commence.
Lobbying is in full swing in London as the new Labour Government prepares for its autumn statement. Two ideas that would be fantastic to see gain government backing are tax relief on new or upgraded farm buildings and tax incentives on longer-let farms.
Anything that supports farmers to invest in their holding is a good idea. Any missing tax revenue will come back through more people employed in erecting farm buildings or an increased number of farms able to thrive, knowing they have greater security over their business. If we don’t act, we will see an acceleration of farming going into fewer hands. While this trend has been ongoing for at least the last century, an increased pace is not in our best interest.
So, all eyes are on the parliaments in Holyrood and Westminster. We need to see what Labour has planned for the rural economy, and we need to ensure that the assurances given by politicians in NFU Scotland meetings are worth the paper they’re written on.
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