To ask the Scottish Government whether it will set out its intentions for future allocation of the Scottish Rural Development Programme (SRDP) 2014-20.
The Scottish Government remains determined to take a strategic approach to maintaining the SRDP 2014-2020 budget, ensuring that we maximise the EU funds, while continuing support for key government priorities. The success of the programme means that we expect to fully consume the financial envelope during 2021. Spending for some projects and schemes has occurred later in the programme than initially anticipated leading to payments that will fall beyond this programme. The total legacy funding arising from projects and investments under this SRDP is forecast to run until 2029 and amount to £150 million.
Following careful consideration we are currently engaged in seeking approval from the European Commission for amendments to the 2014-2020 programme. The amendments are in response to demand for certain schemes and reflects what can be delivered under this financial envelope. They also take into account the lack of clarity over our immediate future, in terms of not yet knowing when and/or if we will be leaving the EU. If Scotland does have to leave the EU, we want to be able to optimise our ability to put into effect Scottish Government proposals to provide stability and simplification between 2021 and 2024 and to commence piloting new approaches to providing rural support.
In order to allow consumption of the EU funds faster we will amend the co-financing rate to 52% EU and 48% national. This also helps to mitigate against the risk of funds not being replaced by the UK Government beyond this programme.
The revised indicative budget removes underspend for schemes such as Beef Efficiency Scheme and Environmental Co-operation Action Fund (which did not in fact commence due to technical design challenges), while also increasing funding to government priority areas including the Forestry Grant Scheme to achieve key targets.
These budgets are:
Less Favoured Area Support Scheme - £403 million
Agri-Environment Climate - £289 million
Forestry Grant Scheme - £277 million
Beef Efficiency Scheme - £20 million
New Entrants - £23.8 million
Crofters Agricultural Grant Scheme - £12 million
Small Farmers Grant Scheme - £0.4 million
Food Processing, Marketing and Cooperation Grant Scheme - £66 million
Environmental Co-operation Action Fund - £0 million
Advisory Services - £17 million
Knowledge Transfer and Innovation Fund - £6 million
LEADER - £82 million
Broadband - £0.04 million
It is important to note that these are indicative budgets, and we will continue to monitor scheme performance and demand, along with the impact of future Spending Reviews, to ensure that the SRDP continues to deliver towards our commitment to build growth all across rural Scotland.
Also included in this amendment is my decision to extend current contracts for beneficiaries that were successful in the 2015 AECS application round for a further year. These contracts were due to expire on the 31 December 2020 and will be initially extended until 31 December 2021, ensuring that this scheme continues to protect and enhance our natural capital. To conduct a further round of AECS would mean opening for applications early in 2020 but not being in a position to award any new contracts until 2021 and there being potential to create further legacy funding commitments until 2025-26.
To date, we have had no clarity nor certainty from the UK Government over the future funding envelope to replace SRDP beyond 2020. This Government is already committed through the Programme for Government to develop a new agricultural transformation programme which will encompass the now statutory commitments on whole farm emissions accounting and an agricultural modernisation fund.
Accordingly, there will not be a further round of AECS but the extension of the current contracts is likely to ensure a further £6 million is invested, adding to the £177.7 million already committed through the agri-environment schemes to support farmers, crofters and land managers to protect and enhance Scotland’s natural heritage, improve water quality, manage flood risk and mitigate and adapt to climate change.