Moved by
Lord Carrington
37: Clause 8, page 7, line 40, at end insert—
“(1A) Where any business is in receipt of direct payments under the basic payment scheme, any financial assistance from the Secretary of State may not be reduced by more than 25% of the specified amount in subsection (1B) prior to a scheme providing financial assistance under section 1(1) being introduced.
(1B) The specified amount is an amount to be determined by the Secretary of State by regulations, and may be based on—
(a) the amount a business received under the basic payment scheme for a specified year, or
(b) the average amount a business received under the basic payment scheme over specified years before 2021 determined by the Secretary of State.
(1C) Regulations under subsection (1B) must provide for a right of appeal if a business believes that any financial assistance they receive will be reduced by more than 25% of the specified amount prior to a scheme providing financial assistance under section 1(1) being introduced.”
Member’s explanatory statement
This will ensure that cuts in direct payments for 2021, together with the currently unknown cuts in the following years, do not inadvertently damage the viability of farming businesses before they can adapt their business plans to benefit from the productivity grant schemes due to uncertainties regarding trade agreements and the proposed agri-environment schemes.