Source · Select Committees · Welsh Affairs Committee

Recommendation 9

9 Acknowledged

UK Government removed agricultural funding ring-fencing at Welsh Government's request.

Conclusion
We acknowledge that the UK Government’s decision to remove the ring- fencing and apply the Barnett Formula to future agricultural funding was made in response to a request from the Welsh Government. We note that the Welsh Government’s view on this decision has evolved over time. (Conclusion, Paragraph 65) 41
Government Response Summary
The government confirms that agriculture and fisheries funding is now added to devolved governments' baseline, maintained in cash terms, and is no longer ringfenced, with the Welsh Government responsible for its expenditure.
Government Response Acknowledged
HM Government Acknowledged
Agriculture and fisheries funding from 2024–25 has been added to the devolved governments’ baseline funding from 2025–26, meaning the funding amount will be maintained in cash terms. Funding is no longer ringfenced and the devolved governments can choose how to spend this in devolved areas. In Wales, the Welsh Government will be responsible for decisions on how to use the funding and are accountable to the Senedd for those decisions. In future, the Barnett formula will apply in the normal way to agriculture and fisheries funding provided to the Department for the Environment, Food and Rural Affairs in England.