Committee publication · Correspondence · 11 March 2025

Correspondence from the Secretary of State, Department for Environment, Food and Rural Affairs, relating to his letter to the Committee of 17 January, dated 4 March 2025

From: Environment, Food and Rural Affairs Committee

Inquiry: Work of the Department and its arm’s-length bodies

Summary

The Secretary of State for Environment, Food and Rural Affairs responds to January 2025 questions from the EFRA Committee Chair, correcting a minor editing error in his original letter. The corrected response covers agricultural taxation impacts, farming support measures, environmental land management schemes, food security, supply chain fairness, water company stability, fisheries transition planning, marine spatial management, and circular economy reforms.

Key findings

Government committed £5 billion to farming budget over two years; inheritance tax relief allows £3 million passed free of tax, with 20% rate on amounts above that, payable interest-free over 10 years
Top 7% of APR claims (117 claimants) account for 40% of relief value (£219 million); government has no formal definition of 'active' or 'inactive' farmer
Rural Payments Agency resolved 60% of SFI application calls on first contact; 24-day average processing time for expanded SFI applications; 28% of live SFI agreements under 50 hectares
Collection and Packaging Reforms projected to support 21,000 jobs and stimulate £10 billion investment; Extended Producer Responsibility regulations came into force 1 January 2025; Deposit Return Scheme regulations laid November 2024, planned January implementation
Post-Brexit fisheries adjustment period ends 30 June 2026; Marine Spatial Prioritisation programme developing strategic approach to competing sea demands; Environmental Improvement Plan rapid review findings to be published early 2025

Tone

Procedural

Topics

agriculture-and-farmingpublic-financeenvironmental-regulationcircular-economyfisheries

Key actors

Steve Reed OBE, Alistair Carmichael MP, Rural Payments Agency, Office for Environmental Protection, HM Revenue and Customs, Ofwat, Groceries Code Adjudicator, Dan Corry

Notable line

“The government's commitment to our farmers remains steadfast. It is why we have committed £5 billion to the farming budget over two years – more money than ever …”

Key Quotes

“I would like to extend my sincere apologies for a minor error in my letter to you dated 17 January, which has just been brought to my attention.”
— Steve Reed OBE · Opening apology for editing error in January letter

“The government's commitment to our farmers remains steadfast. It is why we have committed £5 billion to the farming budget over two years – more money than ever for sustainable food production and nature's recovery.”
— Steve Reed OBE · Responding to questions on agricultural sector impact of Budget

“The latest figures show that the top 7% of claims (the largest 117 claims) account for 40% of the total value of agricultural property relief. This costs the taxpayer £219 million.”
— Steve Reed OBE · Providing data on concentration of APR claims

“60% of calls on the application process to the Rural Payments Agency (RPA) contact centre (1,506) are resolved during on the initial call.”
— Steve Reed OBE · Reporting on SFI scheme customer service performance

“The Collection and Packaging Reforms have the potential to support 21,000 new jobs and stimulate over £10 billion of investment in recycling capability over the next ten years.”
— Steve Reed OBE · Outlining economic impact of packaging reforms

“It is for the company to solve their issues of financial resilience. It is not for Government to tell a private company how to manage their finances.”
— Steve Reed OBE · Addressing Thames Water financial stability and government role

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Source · parliament.uk record ↗