It is a delight to take an intervention from the hon. Gentleman. It is not absolutely on point with this statutory instrument, but it is always a delight to talk about Welsh lamb. I am still very hopeful that we will get a zero-tariff deal with the European Union, which would be a good outcome for Welsh lamb. In the event that we do not get such a deal, as I hope he knows, we worked up various schemes in our previous planning for a no-deal exit, and I am sure that, if needed, those can be got out and worked up once again.
To return to the regulations, this new traceability system, which will be available for sheep in the future, will allow us better to manage disease, which is what we are talking about. We are not talking about deal or no deal at the moment; we are talking about management of disease in lambs, Welsh or otherwise. The system should also enable us to protect human health, giving confidence to trading partners—with whom we hope we will be able to trade—and enable better use of data to manage on-farm productivity and efficiency.
I turn to the Direct Payments to Farmers (England) (Amendment) Regulations 2020. The legislation governing direct payment schemes contains financial ceilings that are used to calculate direct payments to farmers. However, the legislation only includes financial ceilings up to and including the 2020 claim year. These regulations specify how the Secretary of State will set financial ceilings for England beyond the end of this year. These regulations also make minor changes to ensure that the schemes continue to work effectively in England beyond 2020. That includes replacing dates specific to the 2020 scheme year with equivalent dates that are not year-specific. The regulations also remove rules that are not relevant to England, such as those relating to voluntary coupled support.
No substantive policy changes are made by these regulations. They ensure the continuity of direct payments in England beyond the end of this year and are largely technical. Farmers will see no change on the ground as a result of them. The Government remain committed to beginning to phase out direct payments from 2021 as part of their ambitious agricultural reforms in England. We will bring forward separate legislation to make those changes. Direct payment schemes fall within devolved competence. The devolved Administrations plan to make their own legislation in relation to direct payment schemes in their own territories.
I turn to the World Trade Organisation Agreement on Agriculture (Domestic Support) Regulations 2020. The World Trade Organisation’s agreement on agriculture divides domestic support into green, blue or amber depending on the support’s potential to distort trade. Under the agreement, each country must limit the amount of trade-distorting amber box domestic support given to agricultural producers. The UK’s overall amber box spend limit remains unchanged after EU exit. These regulations specify the amount of amber box payments that may be given in each country of the UK. Those limits have been set at a level that will not constrain policy choices, meaning that there should be no impact on farmers. The regulations also outline the procedure for classifying such schemes and permit the Secretary of State to request information from the DAs where that is needed to enable the UK to satisfy its obligations under the agreement on agriculture.
These statutory instruments implement provisions provided for by the Agriculture Act. In the case of direct payments, they provide important and necessary continuity for farmers. I urge Members to agree to these regulations, which I commend to the House.
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