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Chancellor offers cash boost to farming
Combine harvester
Farming is to receive an extra £500m from the Chancellor
A major new investment in the future of farming has been announced by the government in its review of public spending.

The Chancellor Gordon Brown has made an extra £500m available in the wake of last year's foot-and-mouth crisis.

The additional funding will be used to improve flood defences and help implement the Curry report on sustainable farming.

The report by Sir Donald Curry was drafted in response to the devastation caused by last year's foot-and-mouth disease outbreak and subsequent plummeting farm incomes.

Foot-and-mouth alone cost the public and private sector more than £8bn and devastated the country's meat and livestock trade.

The report said £500m was needed for a radical overhaul of farming, moving it away from intensive operation and heavy subsidies to environmentally sustainable schemes and organic farming.

Margaret Beckett
The settlement has been welcomed by the Rural Affairs Secretary Margaret Beckett
Margaret Beckett, Secretary of State for Environment, Food and Rural Affairs, said: "I welcome this settlement which will allow us to move towards a sustainable future for the countryside.

"The additional funding also allows the Department to provide the leadership necessary to deliver its rural affairs remit, working in partnership with other government departments and agencies to improve the prosperity of rural areas and improve access to services.

The National Farmers Union said that while it needed to study the full text of the proposals, the announcement had to be seen in context of the "severe" plight facing agriculture.

"Like all the other elements of this announcement, this proposal will need close examination. As always, the devil is in the detail," NFU chief Ben Gill said.

Devon County Council gave a cautious welcome to the initial details.

Deputy Council Leader Cllr Brian Greenslade, said: "I support the extra money for sustainable farming and flood defence which are two issues the County Council has been lobbying hard for.

"The investment in sustainable farming is potentially good news for the Devon Foot-and-Mouth Recovery Plan but we've got to make sure the county receives its fair share of that aid."

Environmental pressure group Friends of the Earth said that the figures mentioned needed careful checking to see whether the full Curry report package had really been funded.

"The Chancellor's reference to "core" recommendations only is worrying in this respect," it added.

KEY PROPOSALS:
  • Department of Environment, Food and Rural Affairs budget to go up 2.7% a year, from £2.5bn to £2.9bn, by 2006

  • Cash to be spent on promoting sustainable farming and improving flood defences

  • Major reform of planning to speed up development in high unemployment areas

  • Regional Development Agency (RDA) budgets up from £1.6bn a year to £2bn

  • RDA's role to be strengthened role in tourism and transport.


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