Author: Caroline Ingamells

The revised Countryside Stewardship Higher Tier (CSHT) offering will not be available until next summer.  This news comes as part of a wider Defra announcement on the future of the scheme.  CSHT was supposed to have been opening in autumn 2024 to allow claimants to ‘draw-up’ applications ready for an early 2025 start date.

General

Countryside Stewardship is the second ‘tier’ of the Environmental Land Management (ELM) programme.  It provides payments for land managers who wish to do more intensive environmental work than under the SFI.  With the expanded SFI 2024 effectively taking over almost all previous CS Mid Tier options, the CS is now Higher Tier only.  It is focused on the most environmentally significant sites (such as SSSIs) and woodlands which require more long-term and complex management.

The new CSHT offer includes 132 actions and 145 capital items (including 25 new options), plus a further 6 capital items to fund the preparation of plans that may be required to support an application (see below).  Defra is trying to improve the offer to encourage more people to apply with the aim of 1,200 new High Tier agreements by March 2026.

The details of all the actions, supplements and capital items, including payment rates can be found via https://www.gov.uk/government/publications/countryside-stewardship-higher-tier-get-ready-to-apply .  Note this is only ‘preview’ guidance; it sets out what can be done now to prepare and the funding available, the full guidance will be published before applications open in ‘summer 2025’.

Controlled Roll-Out

Similar to the SFI, CSHT will be rolled-out ‘gradually’.  The first applications will be by invitation only, these businesses will be contacted by RPA from 6th January 2025.  Natural England (NE) and the Forestry Commission (FC) will identify who is invited initially.  This will include;

• those with an existing CSHT agreement that expires at the end of 2025

• those with an approved woodland management plan already in place

• those who want to apply for an agri-environment agreement and have an approved plan in place so are ready to develop an application.

‘Invitations’ will be sent out monthly, to those in the above criteria, to receive ‘pre-application’ advice.  Those that do not fall within the criteria above will be able to contact RPA to let them know they are interested in applying.  More details on this process will be available in February and RPA has asked that customers do not contact them until then (!).

Applications will be made online via Rural Payments.  However, whilst those that will be invited can start to prepare their application from January, it will not be possible to submit an application until ‘summer’ 2025.   Once an agreement has been offered and accepted, the first payment will be made 4 months after and then quarterly thereafter.  CSHT agreements will last for 5, 10, 15 or 20 years, depending on the length of the longest action in the agreement.  Once fully opened, RPA will introduce rolling applications, so it will be possible to apply all year round with monthly start dates.  From summer 2025 applications will open up to a wider range of customers who will be ‘identified and invited’ to prepare an application – further information on this will be provided at a later date.

Defra is also making more ‘tools’ available to applicants for planning their proposals.  These include Implementation Plans, Woodland Management Plans, Agroforestry Plans, Species Rich Management Plans and Feasibility Studies with the aim of reducing the need for intensive pre-application advice from ‘arm’s length bodies’ cutting down on lengthy negotiations.  Furthermore, advice will focus on the actions available under CSHT where previously advice from NE and FC covered the entire holding.

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Following harvest 2024, we have updated the figures for our Loam Farm model.  This shows low profits from the previous cropping year.  In addition, the outlook for 2025 is not great.

Loam Farm is a notional 600 hectare business that has been used since 1991 to track the fortunes of British combinable cropping farms.  It is partly owned and partly rented and is based on real-life data.  It has one full-time worker and employs harvest casual labour.  It grows a range of cereals crops and has entered into an SFI agreement.  The table below provides a summary of the last three harvest years, and a budget for harvest 2025.

The farm is completing its grain sales from harvest 2024.  It has less to sell than average due to reduced yields – a result of the wet weather through the autumn of 2023 and spring of 2024.  Coupled with unexciting prices this means the output of the farm is reduced – some 35% on the 2022 harvest year – although it must be noted that this was an unusually good year.  Although variable costs have fallen, overheads have climbed.  This has resulted in a loss from production.  This year’s residual Basic Payment and the SFI the farm has entered offset this shortfall, but there is a low level of overall farm profitability.

We have commented before about the variability of results from harvest 2024.  Loam Farm is simply an illustration.  Some businesses will have had an ‘OK’ year (although very few are likely to have had a ‘good’ year).  But, equally, some combinable cropping farms will have fared worse than Loam Farm and are facing significant losses for the past year. 

Turning to the budget for harvest 2025, output is forecast to recover somewhat.  This is largely due to yields reverting to average rather than any firming in prices.  Loam Farm has managed to establish its crops this autumn despite some testing conditions.  With costs not changing greatly, profitabilty from production improves so that there is a positive return.  The sharp drop in the Basic Payment for 2025 can be seen – this is a result of payments being capped at £7,200 per farm.  Previously, Loam Farm was budgeting on BPS income of £58 per hectare.  The SFI income has risen as the farm has added some new SFI2024 options.  It shows how important this income stream has become to overall profitability.

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The Capital Grants scheme in England has been closed.  The closure of the scheme was confirmed on the 26th November when a small notice was added to the relevant section of the Defra website stating ‘Capital Grants 2024 are currently closed‘.  Subsequently Defra has written a blog (see https://defrafarming.blog.gov.uk/2024/11/27/an-update-on-capital-grants/) in which it says, ‘due to an overwhelming demand for some capital grant items, the main capital grant offer will have closed to new applications – a total of 76 grant items.  This is being done to prioritise funds for areas that will have the greatest benefit for food security and nature conservation’.  According to Defra, the high demand for some grant items has led to spending levels that ‘aren’t sustainable’ for this year – it is forecast to spend 49% more on capital grants this year than in 2023/24 and 125% more than in 2022/23.

There is no indication when the scheme might reopen, it does talk about being ‘temporarily closed’ to most new applications with a further update in ‘early’ 2025.  For those who have already applied and are waiting, it seems they will be put ‘on hold’ for now and applicants will be contacted in early 2025 with information about what happens next.

The following grants remain open;

• Woodland Tree Health Grants
• Capital Grant Plans and Management Plans
• Protection and Infrastructure Grants
• Higher Tier Capital Grants

Further details for these can be found via https://www.gov.uk/government/collections/capital-items-guidance-for-applicants-and-agreement-holders?utm_medium=email&utm_campaign=govuk-notifications-topic&utm_source=571a361e-7871-4f0d-b943-318bffa13b5b&utm_content=daily

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Scheme Changes

The Welsh Government released further details on the Sustainable Farming Scheme (SFS) on the 25th November.  This sees significant changes made to the scheme since the consultation was issued last year.  The most eye-catching move has been the dropping of the 10% tree-cover requirement.

The document that has been published (see https://www.gov.wales/sustainable-farming-scheme-proposed-scheme-outline-2024-html) is described as an ‘interim position’.  The Government is keen to point out that this is not the final scheme and consultations will continue.  Economic analysis and impact assessments will also be carried out.  The final scheme will be published in summer 2025 ahead of the 1st January 2026 start date.  The current document also does not contain any payment rates.  The Welsh Government is likely waiting to see what it is allocated in Spring’s Spending Review before being able to make this decision. 

The main changes to the SFS are;

• removing the Scheme Rule to have 10% tree cover. This was one of the most contentious elements of the original plans. Universal Action 13 (UA13) has been re-written so that each farm will have to produce a plan to identify the opportunities for planting additional trees and creating new hedgerows across the farm.  There will be no specific farm-level percentage targets however; although there will be scheme-level targets on woodland creation.  There will be grants available for hedges and trees under the Optional Actions tier of the SFS.  The other ‘Scheme Rule’ of having 10% Habitat Area across the farm is being retained.  There is the option to create temporary habitat to meet this requirement, however
• the overall number of Universal Actions has been reduced from 17 to 12. UA4 – Multispecies cover crop; UA6 – Managing modified peatland; and UA10 – Ponds and scrapes, have all been dropped.  UA15 to 17 have been combined into a single, simplified, ‘Animal welfare’ Universal Action.  Most of the Universal Actions that have been dropped have been moved into the Optional Actions – the second tier of the scheme.  Many of the UAs that have been retained have also been revised – with 10 out of the remaining 12 being amended
• the Universal Baseline Payment will be available on Common Land – based on the number of grazing rights
• payments for Universal Actions will be available on Sites of Special Scientific Interest (SSSI)

Details of the changes were announced by the Welsh rural affairs minister Huw Irranca-Davies at the Royal Welsh Winter Fair.

Preparatory Schemes

Until the SFS opens in 2026, there will be a ‘Sustainable Farming Scheme Preparatory Phase of Activity’ with a number of schemes available.  In addition to those outlined at the end of July (Habitat Wales Scheme, Organic Support Payment and the Integrated Natural Resources Scheme) the following grants will also be available, with some already open;

• Growing for the Environment – open from 4th November to 13th December 2024 for funding towards a range of spring and summer crops, such as mixed leys, protein crops and unsprayed cereals.
• Agricultural Diversification and Horticulture Scheme – open from 4th November 2024 to 17th January 2025, provides support for livestock enterprises that are not traditional in Wales e.g. sheep or goat milking enterprise or growing of novel or alternative crops.
• Small Grants – Environment – due to open 13th January 2025 to 21st February 2025, although no announcement has been given as to which theme this will be out of Carbon, Water or Landscape and Pollinators
• Small Grants – Efficiency – due to open from 3rd March to 11th April, supports capital investments in equipment and technology that have been pre-identified.

In addition to these new announcements a reminder that the Woodland Restoration Scheme has just opened and will close on 28th February.  Details of all the schemes can be found via https://www.gov.wales/rural-grants-payments

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Rachel Reeves unveiled the first Budget of the new Labour administration on the 30th October.  As expected, it included large tax increases to fix the fiscal ‘black hole’ the Chancellor says she has inherited.  A number of the announcements have direct implications for farming.

The Office of Budget Responsibility (OBR) has updated its economic forecasts for the years ahead.  These show fairly anaemic growth for the medium term, and inflation not reverting to its target level of 2% until 2029.  Of course, one of the guiding principles for this Government is to boost economic growth.  This is not a short-term process however, and even sucessful policies will take years to show an effect.

Headline points from the speech include;

• As widely trailed, the rules on Agricultural Property Relief (APR) for Inheritance Tax (IHT) are to be amended, along with Business Property Relief.    100% relief will still be available for the first £1 million of combined agricultural and business assets.  On combined assets above £1m, IHT will be payable at 50% of the normal rate (50% of 40% = 20% effective tax rate).  The IHT threshold is to remain fixed at £325,000 until 2030.  At a land price of £10,000 per acre the new rules will hit farms abover circa 100 acres – hardly large farms.  The change is to be introduced from April 2026.  The rules on Potentially Exempt Transfers (PET) are unchanged meaning assets can be given away tax free if the donor survives 7 years.  There will be transitionary arrangements on this where deaths occur between now and April 2026.  The ability to pay IHT over 10 years remains.  From April 2025 land entered into environmental schemes will be eligible for APR
• The rates of Capital Gains Tax are to increase.  The standard rate will rise from 10% to 18% whilst the higher rate lifts from 20% to 24%.  This aligns the rates with those for residential property
• The biggest tax increase comes in the form of a rise in Employers National Insurance (NI) contributions.  The rate will go up by 1.2% from 13.8% to 15%.  The threshold at which payments start is also to be lowered from £9,100 to £5,000.  A very thin silver lining for employers is that the Employers Allowance will rise from £5,000 to £10,500.  The changes to NI are predicted to raise £25bn
• Minimum wage rates are to rise from April next year.  The National Living Wage for those 21 and above will go up 6.7% from £11.44 per hour to £12.21.  The 18-20 year old rate goes up from £8.60 to 10.00, whilst the Apprentice rate jumps from £6.40 to £7.55.  The combined effect of the NI and Minimum Wage increases will have a significant effect on those that employ a lot of labour at low wage rates – for example the fresh produce sector
• The thresholds for Income Tax and NI will remain fixed until 2027/28 as previously announced.  This is effectively a stealth tax as ‘fiscal drag’ gradually brings more people into higher tax bands as inflation takes effect.  Thresholds have been unchanged since 2022.  In a slightly surprising move the Chancellor stated that thresholds will start to be increased in line with inflation again for 2028/29
• Fuel duty will remain unchanged.  Alcohol duty will largely rise in line with inflation although the rate for draft beer is to be cut
• A reform of the Business Rates system is promised within the lifetime of this Parliament.

A key question for agriculture was what the funding for farm support is going to be.  Defra’s Departmental spending allocation is as follows;

The Budget document states that ‘The Government is facing significant funding pressures on flood defences and farm schemes of almost £600 million in 2024-25.  While the Government is meeting those commitments this year, it is necessary to review these plans from 2025-26 to ensure they are affordable‘.  It is not obvious what this means.  The publication goes on to state that ‘[The settlement is] providing £5 billion over 2024-25 and 2025-26 to support the transition towards a more productive and environmentally sustainable agricultural sector in England‘.  This, coupled with the announcement from Defra (see article on BPS in 2025), indicates that the current farm budget in England of £2.4bn per year has been maintained.  The amount for 2025/26 is going to be increased as a one-off to £2.6bn as £200m of underspend from previous years is going to be rolled forward.  This neatly arrives at the £5bn for two years.  In 2025/26 £1.8bn will be allocated to ELM.

A continuation of the current budget (in nominal terms) is not unexpected.  But should be remembered that there has been significant inflation since the £2.4bn for England figure was set in 2020.  Using the OBR’s forecasts going forwards, prices will be 30% higher in 2026 than they were in 2020 – thus this is effectively a circa 30% funding cut.  Furthermore, farm spending was never uprated for inflation when we were part of the EU.  The £2.4bn figure has been almost the same since 2007.  Agriculture is being asked to do more for less.  The settlement is far lower than the £4bn for England the NFU (with Andersons help) calculated as being required to meet Government policies.

Looking beyond 2025/26 (the 2025 ‘subsidy year’) the Comprehensive Spending Review will set Defra’s budget for future years – likely 2026 to 2028.  If public finances remain under strain, there is no guarantee about future funding even remaining at current levels.

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Following the Budget, Defra has released further information on its farming support schemes for 2025.  Details can be found in a Defra Blog post – https://defrafarming.blog.gov.uk/2024/10/30/budget-2024-maintaining-momentum/.

Delinked Payments

Defra has announced the deductions to delinked (BPS) payments in England for 2025.  Readers will recall we have been waiting to find out the reductions for the years 2025-2027.  It appears the cuts will be far deeper than we, and many others, forecast.  Defra has said, for 2025, it plans to apply a 76% reduction to the first £30,000 of a payment; we had previously estimated 65%.  Importantly though, for amounts above £30,000, there will be no payment at all – the deduction will be 100%.  This means that all English farms will receive no more than £7,200 in direct payments next year.   i.e a BPS delinked Reference Amount of £40,000 will be cut to £7,200 in 2025, reducing from £19,500 this year.  This will come as big shock to many, especially on the back of a poor harvest and two difficult autumns.

ELM

Defra has confirmed that SFI, Countryside Stewardship (Higher Tier) and Landscape Recovery schemes will continue.

The SFI 2024 expanded offer is open, although still requires an Expression of Interest to be submitted first and an ‘invitation’ from RPA to make an application.  There is no indication when the scheme will be freely open.

There will be more information regarding Countryside Stewardship Higher Tier in December (previous announcements have said it would be available ‘in the autumn’).  Farmers with expiring HLS or Higher Tier agri-environment agreements this year will be offered an extension to their existing agreement, supposedly to allow them time to move into new agreements in an ‘orderly way’.   The long-awaited process for those in legacy HLS agreements and those farming on Commons to transfer into new schemes, which was supposed to have been available from September has been pushed back until next year now – Defra states ‘Next year, we will make it much easier for farmers in legacy HLS agreements and those farming on Commons to transfer into new schemes smoothly, as and when they wish’.  This transfer process which was promised at the outset of ELM, appears to keep getting pused back.  Furthermore there is no real announcement on the third element of ELM, Landscape Recovery, the previous Government had committed to annual rounds, but there has been no application available this year as yet.  The latest announcement says ‘we will share more about future rounds of Landscape Recovery in due course’. 

Other Support

Defra has confirmed it will honour the £60 million which was made available under the Farming Recovery Fund to support those affected by Storm Henk and other severe weather last winter.  It has said the RPA will contact eligible farmers directly – many farmers have received correspondance from RPA now with a set amount offered via a banded payment rate depending on the area deeed to have been affected.  Payment should reach bank accounts within 28 days of the email.  It has also stated ‘We will simplify and rationalise our grants offer to prioritise the initiatives that deliver the most critical support for food security and environmental goals in England. We will confirm the plans for our grant rounds in due course’.  It is unclear what this is actually referring to, whether this is the capital grants under the Farming Investment Fund, which have not opened as ‘expected’ this year.

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The big question in terms of farm support over the next few months is how much funding there will be for 2025 and beyond.  The process by which we find out is unclear.  By reading various statements from the Treasury, we believe the timetable is as follows;

• the Budget on 30th October will set Departmental spending for 2025/26, including Defra’s.  This may also cover ‘in-year’ adjustments for the 2024/25 year, including any clawback of unspent Defra funds for other purposes 
• soon after (or concurrently), Defra shoudl then provide the Agriculture budget for the 2025 BPS year and BPS deductions for 2025 in England
• a comprehensive Spending Review will conclude in spring next year.  This will be for a minimum of three years (for 2026/27 to 2028/29) so would cover support years 2026 to 2028 – through to the end of the Agricultural Transition

We will, of course, keep you updated on any developments.

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The latest figures for Andersons’ Meadow Farm model shows some improved returns in the beef and sheep sector.  However, even with current high livestock, prices, the farm struggles to make a profit from its farming activity.

Meadow Farm is a notional 154-hectare (380 acre) beef and sheep holding in the Midlands.  It consists of grassland, with wheat and barley mainly for livestock feed.  There are 60 spring-calving suckler cows with all progeny finished, a dairy bull beef enterprise and a 500-ewe breeding flock.  The 2022/23 year was challenging – although output prices were high costs rose substantially (feed costs were especially expensive).  Further cuts to the BPS meant the overall farm made a loss.  In 2023/24, the gross margin improved due to lower costs and stronger livestock prices.  Overhead costs continued to drift upwards.  The farm again made a loss from production although it was much lower than the previous year.  The current 2024/25 year shows an improvement in output once more.  Some of the higher variable costs are due to the farm entering the SFI (i.e. herbal ley establishment).   The extra income from the SFI offsets the decline of the BPS and the business profitability improves.  The budget for 2025/26 suggests a downturn in performance – a combination of a further drop in the BPS and a moderation of beef and sheep values.

For nearly every year in the past decade, Meadow Farm has made a loss from agricultural production and has been reliant on support (BPS/CS/SFI etc.) to make a business surplus.  With the phased removal of the BPS, and the CS and SFI being inherently less profitable, the farm could become unsustainable.  The table above models a restructuring of the business.  Based on figures for the 2024/25 year, the numbers show that the farm can be reorganised to make a better overall return.  The restructuring sees the dairy beef enterprise discontinued and suckler progeny are sold as weaned stores, rather than being finished.  The sheep enterprise is increased from 500 ewes to 700 ewes and the arable land is fully contracted out.  Farm machinery is rationalised.  In addition, the proprietors’ time is freed-up and so there is opportunity to earn more income off-farm (as a result, drawings reduce).  There is now a margin made from agricultural activity.  In total, the business does make a good overall profit of nearly £65,000.

Looking at ‘average’ profits for grazing livestock farms, such as from the Farm Business Survey, it can often seem that the sector is doomed to loss-making.  However, there are good, profitable, beef and sheep farms in UK agriculture.  The restructuring of Meadow Farm, which is not particularly severe, shows what is possible.  The biggest obstacle tends to be people.  In the case of Meadow Farm the change in business performance is contingent on one of the family members being willing to work part-time off-farm.   

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As harvest progresses in the UK, grain prices have continued to slide.  The value of UK November 2024 UK feed wheat futures reached the lowest point for the contract since March 2024, although spot prices remain ahead of those levels.  The full picture for grain, oilseed and pulse prices is tracked monthly in our Key Farm Facts.

The Andersons Centre has been carrying out harvest reporting for AHDB throughout the course of the summer.  The latest harvest report was published on Friday 16^th August.  This showed that the wheat harvest was 37% complete; significant progress has been made in the weeks since then and is now nearing completion in much of Eastern England and the Midlands.  Wheat yields so far are 7% down on the five-year average across the UK.  There has been significant regional variation, with yields generally better for winter crops in East Anglia, and poorer in the Midlands.  This is perhaps not surprising given the challenges during planting and crop development this season.

Spring crop harvesting is also well underway across much of England.  Early signs suggest that spring crops are performing better, comparatively, than winter crops.  Yields and grain sizes have been promising and malting quality of barley samples has been good.  The lack of sunlight through crop development has led to low levels of nitrogen.

While low nitrogen is good for malting barley, the same cannot be said for milling wheat.  Low protein content has been a feature of milling wheat samples.  This has led to continued strength in milling premiums.  That said, poor protein is more manageable for millers than last year’s Hagberg quality challenge as it can be blended to acceptable levels. This may result in a fall in premiums through the season.

The direction of global grain prices is driven by the balance of global supply and demand.  The United States Department of Agriculture made unexpectedly large upward revisions to maize and soyabean production estimates in August.  The trade had expected increases of 0.75% and 0.05% to soyabean and maize production, respectively.  The USDA increased their forecasts by 3.48% and 0.29%, respectively.  The size of the change is relatively small but, being greater than traders expected, led to a decision to sell more, leading to a fall in prices.

Domestically, pressure is also coming from increased grain stocks which have been carried through harvest.  On-farm stocks are estimated at 1.16 million tonnes and more than 1 million tonnes of merchant, ports and co-operative stocks.  According to AHDB this figure is 89% above the five-year average level.  This reflects both the expectation of a smaller 2024 by the trade, and also the direction of prices this season leading to a lack of farmer selling.

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A reminder that the succession rules under Agricultural Holdings Act (AHA) tenancies changed as from the 1st September.  This is one of the changes brought in by the Agriculture Act 2020.  The previous ‘Commercial Unit’ test will be scrapped – this effectively meant someone could not take on the tenancy if they already had control of a large enough holding.  From the 1st September there will be three conditions for succession.  There are two ‘eligibility tests’ – firstly the potential successor must be a close relative to the previous tenant; secondly the successor must have derived their principal livelihood from the farm.  Then, the third condition is a ‘suitability’ test.  The person wishing to take over the tenancy must have the right level of experience, skills, financial standing and capability to take on the farm.  This test has been strengthened as a qui-pro-quo for the removal of the Commercial Unit test.

 

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Profitability figures from our Friesian Farm model are shown in the table below.  This is a notional 220+ cow business in the Midlands with a milk contract on a constituent basis.  It has a year-round calving system, like much of the UK industry, but it is trying to maximise yield from forage.  The figures are for milk years – April to March.

The 2022/23 year was a very profitable one for most dairy farms.  Milk prices rose to unprecedented levels and although costs went up a lot as well, many dairy farmers made record profits.  During the 2023/24 year milk prices declined considerably.  With costs ‘sticky’ on the way down, the business only broke even from its farming activities.  The decline in the BPS in England can be clearly seen.  For 2024/25 however, this farm has gone into the SFI.  This adds a useful amount to the bottom line (although there are costs to the scheme which are included in the farming margin).  Milk prices are firming but there is a question over how far and fast any rises may be.  Overhead costs drop for 2024/25 – this is due to cheaper fuel and electricity, but also due to unusually high contract costs during the previous year.  A strong recovery in profitability is forecast for the current year.

The final column is our first forecast for 2025/26.  An improving dairy market outlook sees the milk price up 1ppl.  Variable costs have remained fairly stable over the last couple of years and we forecast them just rising with a normal level of inflation.  Forecast overhead costs would have fallen for the year but the farm has budgeted to make some long-term investment in slurry storage.  We can clearly see the level of BPS declining, but together with the SFI payment the total is currently still more than support received in 2019/20 – a reminder that the costs of undertaking the actions to be in SFI (i.e herbal leys) are much higher than the BPS, but these have been accounted for in the farming margin.  Overall, however, the budget for 2025/26 shows some good returns – but it should be remembered that a lot can change in 18 months.

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Following its landslide victory in the General Election, the new Labour administration is starting to bed-in.

In farming terms, the former Shadow Defra team have been installed into Ministerial posts – meaning there should be little need for them to get up-to-speed on policy issues.  Steve Reed has become Defra Secretary of State and Daniel Zeichner has a junior position as Minister of State.  Mr Zeichner, MP for Cambridge, will be in charge of the farming portfolio as he was in the Shadow Cabinet.  Steve Barclay currently retains the Defra brief in Rishi Sunak’s new Shadow Cabinet.

Mr Reed (MP for Streatham and Croydon North) has already set out his five priorities for Defra;

• to clean up rivers, lakes and seas
• to move Britain to a zero-waste economy
• to boost food security
• to ensure nature’s recovery
• to protect communities from the dangers of flooding

At present, there is little flesh on the bones of these priorities.  The Labour Manifesto was notably silent on specific commitments to farming.

Labour’s longer-term legislative priorities were set out in the King’s Speech on 17^th July.  Over 35 potential Bills were announced.  Boosting economic growth by easing Planning rules was the centrepiece of the programme.  A Planning and Infrastructure Bill will be introduced which aims to ‘speed up and streamline the planning process to build more homes of all tenures and accelerate the delivery of major infrastructure projects’.  The new Government is already showing its priorities under existing powers.

• the end to the de facto ban on onshore wind
• reinstating mandatory housebuilding targets for Local Authorities (however, as many of these targets were never met in the past, it will be interesting to see what practical effect this has)
• the recruitment of 300 new Planning Officers to help reduce the backlog of applications
• prioritising energy infrastructure, with decisions being made in relation to the national interest (including the effect on growth) rather than just local considerations. Three large-scale solar farms have been approved in England, totaling 6,500 acres of farmland, which had been waiting for a Ministerial decision.  There had been strong local opposition to all three.

The transition to clean energy is a wider theme of the new Government.  A Bill will be enacted to set up GB Energy, a company headquartered in Scotland, that aims to accelerate investment in renewable energy.  There will be increased protection for workers (and cost for employers) under a new Employment Rights Bill.  A Renters Rights bill will give greater rights to tenants in England, including ending section 21 notices to quit.  New legislation will strengthen the powers of the water regulator – partly to improve water quality in rivers.  There will also be an English Devolution Bill aiming to pass power from Whitehall to the regions – but seemingly requiring Councils to come together in larger administrative units.

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