AQO 1339/22-27

Mrs Michelle Guy
Alliance Party
Lagan Valley

Tabled Date: 06/01/2025
Answered On Date: 14/01/2025
Priority Written: No

Question:
To ask the Minister of Agriculture, Environment and Rural Affairs for his assessment of the impact of the 2025-2026 draft budget on his Department.

Answer:

This is a very difficult proposed outcome for DAERA given the significant challenges facing my Department.

On Resource DEL, my initial assessment is while I welcome the proposed Executive earmarking of the £332.5 million for agriculture, agri-environment, fisheries and rural development that was previously earmarked by HM Treasury for these purposes, I am disappointed that there has not been an inflationary uplift in this funding. However, I recognise the very constrained funding available to the Executive.

In relation to the proposed £15.7 million general allocation to my Department, this is significantly less than my £50.9 million bids. This would mean that there is insufficient funding to cover DAERA’s statutory obligations such as bTB Compensation, contractual pressures on pay and running costs, and important new work on Climate Change and the Environmental Improvement Plan including Lough Neagh.

On Capital DEL, I welcome the proposed Executive earmarked allocation of £12.3 million to DAERA for a just transition fund for agriculture. However, the proposed £119.5 million total Capital DEL allocation is £7.1 million less than my Department’s £126.6 million inescapable bids and, while that is disappointing, it again reflects the wider availability of such funding for the Executive.

This also means that my Department would not receive any funding to allocate to my £52.7 million high priority Capital DEL bids which include Lough Neagh and the Tackling Rural Poverty and Social Isolation programme

I will therefore have to make difficult decisions on what can be funded. If no further funding is available for my Department at Final Budget stage I will be seeking additional Resource DEL and Capital DEL allocations at in-year Monitoring Rounds in 2025-26.