Source · Select Committees · Welsh Affairs Committee
Recommendation 11
11
Acknowledged
No evidence indicates decline in Welsh agricultural funding after ring-fencing removal.
Conclusion
We note the concerns raised by stakeholders during our oral evidence sessions about the potential for this change to lead to a reduction in Welsh agricultural funding. The evidence we received from the UK and Welsh Governments does not suggest that Welsh agricultural funding will decline following the removal of ringfencing and the application of the Barnett Formula. The Welsh Government has allocated £366 million for agricultural support in 2025–26, £29 million more than the £337 million baseline set by the UK Government for the same period. (Conclusion, Paragraph 67)
Government Response Summary
The government confirms agriculture and fisheries funding has been added to the devolved governments’ baseline from 2025-26, maintained in cash terms, and is no longer ringfenced, with the Welsh Government responsible for spending decisions.
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.