Independent report

Terms of reference: Review of intra-UK allocation of domestic farm support funding to the end of this parliament

Updated 6 September 2019

1. Objectives

Considering the convergence funding received by the UK in the current Multiannual Financial Framework (MFF), this review will look at what factors should be taken into account to ensure an equitable intra-UK allocation of domestic farm support funding to the end of this parliament. The review’s conclusions will be advisory.

2. Scope

The review will:

  • inform domestic intra-UK agricultural funding allocations under the farm support manifesto commitment to the end of this parliament, limited to the quantum of convergence funding
  • consider a wide range of factors reflecting the environmental, agricultural and socio-economic circumstances of each of the four parts of the UK. For example, factors could include:

    • the need to use public funds cost effectively
    • farm output, numbers and size across the UK
    • land classification including environmental land conditions
  • be fiscally neutral within the envelope set by the farm support manifesto commitment

The review will not:

  • revisit the intra-UK allocation of 2014-2020 Common Agricultural Policy (CAP) funding
  • set the quantum of funding under the farm support manifesto commitment
  • pre-empt decisions to be made on the agricultural funding arrangements beyond 2022

3. Timings

The review should commence as soon as possible. We would anticipate the review lasting between 3-6 months.

4. Lead reviewer and advisory panel members

An independent reviewer will be selected to lead the review based on objective criteria agreed by Defra, HM Treasury and No.10.

The lead reviewer will be supported by a team of advisory panel members. These would need to be drawn from England, Scotland, Wales and Northern Ireland, based on objective criteria similar to those used to select the lead reviewer. Panel members will be appointed by the UK government after consultation with the devolved administrations.

5. Secretariat

Defra and HM Treasury would provide the secretariat to the review team.

6. Post review

The UK government will be responsible for considering and responding to the non-binding recommendations of the review.