∙ Leaders of the Brexit campaign promised that leaving the EU would not lead to reduced funding for farming and rural areas
∙ The 2019 Conservative Manifesto stated “...we will guarantee the current annual [Common Agricultural Policy (CAP)] budget to farmers in every year of the next Parliament”
∙ The EU CAP budget for Wales for the period 2014-2020, confirmed on 8th November 2013 by the then Secretary of State for Environment Owen Paterson was “…a pillar 1 (direct payment) allocation of around €2,245 million, and pillar 2 allocation of around €355 million” (https://www.gov.uk/government/news/uk-cap-allocations-announced )
∙ This is a total of €2.6 billion over the seven year (2014-2020) CAP budgetary period – an average of £331 million a year based on the £0.89/€ exchange rate fixed by the UK Government ∙ On 25th November 2020 the UK Government announced that Wales’ 2021-2022 financial year allocation for agriculture and rural development would be £242 million - £89 million less than the average annual EU CAP allocation for the period 2014-2020
∙ The £242 million figure for the 2021-2022 financial year is £95 million less than the £337 million received in the 2019 funding ‘baseline’ defined by the UK Government to calculate Wales’ allocation ∙ The UK Government maintains that the total budget available to Wales in 2021-2022 should be judged to be the sum of the £242 million announced on 25th November 2020 and the £95 million in unspent EU funding from the 2014-2020 funding period