Welsh First Minister Raises Alarm Over UK Government’s Agriculture Funding Changes
The UK government’s decision to alter its future funding support rules for Welsh agriculture has sparked significant concern, First Minister Eluned Morgan told MPs on Wednesday. Speaking before the Welsh Affairs Committee in Westminster, Morgan warned that the shift to a new funding formula could leave Wales at a severe disadvantage, with the Farmers’ Union of Wales (FUW) predicting an annual loss of nearly £150 million—equivalent to more than 40% of current funding.
Under the new rules, UK Labour ministers will no longer ring-fence agricultural funding for Wales. Instead, future allocations will be rolled into the general funding provided to the Welsh government. Morgan argued that this change fails to account for Wales’ higher proportion of farmers compared to other parts of the UK.
“If you just do a Barnett consequential, you’re talking about a 5% increase, whereas, actually, when it comes to agriculture, we should be significantly higher than that,” Morgan said in response to a question from Labour MP Henry Tufnell. “So it is a huge concern that that has been changed.”
The Barnett formula, announced in last October’s UK Budget, determines how much the Welsh government receives based on spending increases in England on areas like health and education. However, Morgan emphasized that this formula does not reflect the unique needs of Welsh agriculture.
“It’s about what happens in the future,” she added. “That will not recognise that we have a higher percentage of farmers relative to other parts of the United Kingdom.”
Cross-Party Concerns Over Funding Uncertainty
Plaid Cymru’s agriculture spokesperson in Westminster, Ann Davies, echoed Morgan’s concerns, stating that her party had repeatedly raised the issue with UK government ministers. “They have failed to provide clarity or assurances that future funding will reflect Wales’ higher proportion of farmers,” Davies said. “The fact that the Labour first minister is now also expressing concerns only reinforces the urgency of this issue. The UK government must guarantee that Welsh agriculture will not lose out in the future.”
A UK government spokesperson defended the funding arrangements, highlighting that the Budget provided the Welsh government with a record £21 billion settlement. “The Welsh government receives over 20% more funding per person than equivalent UK government spending,” the spokesperson said. “It is for the Welsh government to allocate this across its devolved responsibilities, which include agriculture, to deliver on the priorities of people in Wales and support the Welsh rural economy.”
Steel Tariffs and Talks with the Chancellor
During her appearance before the committee, Morgan also revealed that she had discussed pressing economic issues with Chancellor Rachel Reeves earlier in the day. Among the topics raised were threats to the steel industry and former President Donald Trump’s proposal to impose a 25% tariff on steel imports to the United States.
“I’m sure we are all very concerned to see what President Trump is suggesting in terms of steel tariffs, and we don’t know where that is going to end,” Morgan said. “It is certainly something that I raised with the chancellor this morning, who assured me that she is very much looking at this situation and is sensitive to the needs of that particular industry.”
Royal Engagement at Windsor Castle
Later on Wednesday, Morgan attended a dinner hosted by King Charles III at Windsor Castle. The event brought together political leaders from across the UK, including Prime Minister Sir Keir Starmer, the first ministers of Northern Ireland and Scotland, and the deputy first minister of Northern Ireland. The gathering underscored the ongoing collaboration between the UK’s devolved administrations and the central government amid growing concerns over funding and economic challenges.
As the debate over agricultural funding continues, Welsh leaders are urging the UK government to ensure that Wales’ unique needs are not overlooked in future financial decisions.
