The Farmers’ Union of Wales has branded the UK Government’s decision to slash Wales’ agricultural budget as a ‘Brexit betrayal’, after chancellor Rishi Sunak revealed in Wednesday’s (November 25) spending review that the budget would be cut by at least £95 million for the coming financial year.

Following a 2019 Conservative Manifesto promise, the Wales’ agricultural and rural development budget was expected to have been £337 million, but the 2021-2022 budget will now be £242 million - a cut of around 28% - while the full loss when projected RDP spend and the 15% pillar transfer is taken into account is £137m.

The announcement came two days after the three devolved governments (Wales, Scotland and Northern Ireland) wrote jointly to Defra Secretary George Eustice urging him to provide assurances that the budget for agriculture would be maintained, and almost a fortnight after FUW President Glyn Roberts wrote to Secretary of State for Wales Simon Hart asking the same.

“The 2019 Conservative Manifesto stated ‘...we will guarantee the current annual budget to farmers in every year of the next Parliament’, thereby securing the votes of many farmers in Welsh constituencies,” said Mr Roberts.

The Farmers’ Union of Wales has responded to the devolved nations’ call for clarity on future rural funding, urging Defra Secretary George Eustice to ensure that previous funding commitments made by the UK Government are honoured.

The response follows the announcement that, ahead of the UK Spending Review, the devolved administrations have written again collectively to the UK Government calling for assurances that all lost EU funding will be fully replaced to provide certainty for the rural economy.

FUW President Glyn Roberts said: "We wrote to Secretary of State for Wales Simon Hart more than a week ago, copying in Defra Secretary George Eustice and the Chancellor, highlighting concerns that funding for agriculture in Wales could be cut severely in the forthcoming spending review, in direct contradiction to what was promised in the 2019 Conservative Manifesto.

The Farmers’ Union of Wales is urging shoppers to keep their Christmas shopping local to show support for rural and local businesses, especially as the Covid-19 pandemic has highlighted how vital local shops are.

FUW Deputy President Ian Rickman said: “As we speed towards Christmas, I would urge you to think about your rural businesses and see if you can buy local, either for the upcoming Christmas dinner or even gifts for family and friends. 

“This year we have seen how important the local shops and businesses are. Many of us relied on them to help out with delivering food and other essentials during the lockdowns and now is the time to repay that favour by supporting them.”

The FUW and other key organisations representing Welsh food and drink producers and manufacturers have written an open letter to the Prime Minister highlighting key issues that must be addressed immediately to avoid detrimental impacts to the industry following the end of the EU Withdrawal period.

“The European Union is the largest market for Welsh food and drink businesses to export their goods to, and includes exports of red meat and dairy products worth an estimated £320 million to Wales,” said FUW President Glyn Roberts.

“What happens in the run up to 1st January 2021 is critical to the economic viability of many food, drink and farming businesses and the supply chains and jobs they support,” said FUW President Glyn Roberts. 

The nine organisations which signed the letter comprised the British Meat Processors Association, CLA Cymru, Farmers’ Union of Wales, Food and Drink Federation Cymru, Livestock Auctioneers Association, National Beef Association, NFU Cymru, National Sheep Association Cymru and the Royal Welsh Agricultural Society.