Committee publication · Correspondence · 13 February 2026
Correspondence received from the Secretary of State, following the evidence session held on 11 November, dated 29 January
Summary
Secretary of State Emma Reynolds responds to the Environment, Food and Rural Affairs Committee's follow-up questions from a November 2025 evidence session. She outlines Defra's approach to farming productivity improvements through the Farming Profitability Review and a new £30m Farmer Collaboration Fund, updates on water infrastructure investment (£104bn planned), devolved allocation of the Fishing and Coastal Growth Fund, Plastic Packaging Tax reforms, and coastal erosion management strategies.
Key findings
- Defra does not make explicit farming or food industry productivity forecasts due to high uncertainty, but cites Baroness Batters' Farming Profitability Review with 57 recommendations and a new Farming and Food Partnership Board (chaired by Reynolds, deputy Dame Angela Eagle) launched December 2025.
- £30m Farmer Collaboration Fund announced over three years to support farmer groups, networks, and expert partnerships on environmental and business growth initiatives.
- Water sector investment of £104bn planned for PR24 cycle includes £44bn enhancement spending; Water White Paper announced 20 January 2026 with legislative changes to support infrastructure delivery.
- Fishing and Coastal Growth Fund to be devolved via Barnett formula following devolution settlement principles; Defra did not hold formal pre-announcement industry discussions but engaged stakeholders October 2025 onwards, hearing calls for flexibility, multi-year funding, and support for small operators.
- Plastic Packaging Tax rate to increase by CPI inflation 2026/27; mass-balance approach for chemically recycled plastic permitted from 1 April 2027; consultation on mandatory certification for mechanically recycled plastic planned early 2026.
Tone
ProceduralTopics
Key actors
Emma Reynolds, Baroness Batters, Dame Angela Eagle, Alistair Carmichael, Baroness Hayman, Lucy Manzano, Environment Agency, UKHospitality
Notable line
“… collaboration between farmers, and with experts, will be key to closing the productivity gap and improving farm profitability.”
Key Quotes
“We do not make explicit forecasts of farming sector productivity. Any such forecasts over a three to four year period are subject to high levels of uncertainty given the variable nature of agricultural productivity growth over time - for example …”
“Over the next 3 years, we will spend up to £30m on a new approach to farm collaboration and advice. This will provide funding for existing and new farmer groups and networks, help those groups to connect with experts and create strong partnerships on everything from environmental action to business growth.”
“The record £104bn of investment planned for the water sector in the current five-year investment cycle (PR24) includes £44bn of enhancement spend, representing a quadrupling of capital delivery.”
“Defra officials did not have formal discussions with industry on the design and implementation of the FCGF ahead of its announcement.”
“Initial analysis of engagement to date has shown that previous schemes were seen as too rigid and bureaucratic. Related to 'how' we fund, stakeholders are showing a desire for multi-year funding, and support in the development of applications.”
Source · parliament.uk record ↗