Defra underspends agricultural budget by £227 million

Defra has repeatedly underspent the farming budget, amounting to more than £200 million in the last two years, according to media reports.

The government pledged that by the end of this parliament, it would spend £2.4 billion a year on farming as the industry transitions away from the EU's CAP model.

But figures from Defra show an underspend of £110m in 2021-2022 and £117m in 2022-2023, a report by The Guardian says.

This means £227 million of promised funds have not been spent on the farming budget.

NFU President Minette Batters told the paper that the underspend was 'unacceptable', especially in a general election year.

"There are huge concerns at to whether the sustainable farming incentive payments can be delivered – despite the NFU and others asking for piloting of delivery, this hasn’t happened.

"With 50% of basic payment scheme payments cut, farmers in England have no idea where that money is and what it has been spent on.”

The Country Land and Business Association (CLA) added that the news would 'knock farmers’ confidence'.

Victoria Vyvyan, CLA President said: “We fully support the government’s Environmental Land Management schemes and the model of public payment for public goods, but it must now urgently deliver on its promises and funding pledges.

“Defra’s repeated underspend of the farming budget, amounting to more than £200m in the last two years, has knocked farmers’ confidence at a crucial time in the agricultural transition process."