Farming funding rule change worries first minister

A UK government change to its future funding support rules for Welsh agriculture are of "huge concern", the first minister has told MPs.

Eluned Morgan said the move to a funding formula could see Wales losing out, with the FUW farming union warning of a cut of nearly £150m a year, or more than 40%.

Labour UK ministers will no longer ring-fence farm cash, with future allocations being rolled in to the general funding they give the Welsh government.

The first minister said Wales has a higher proportion of farmers than other parts of the UK and the new rule "will not recognise that".

Morgan was addressing the Welsh Affairs Committee at Westminster.

The new rule on moving to what is called the Barnett formula was announced in last October's UK Budget.

Under Barnett, the Welsh government receives around 5% of spending increases on matters in England, such as health and education, that ministers in Cardiff are responsible for in Wales.

Answering a question from Labour Mid and South Pembrokeshire MP Henry Tufnell, she said: "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.

"So it is a huge concern that that has been changed."

Morgan, who is also leader of Welsh Labour, added that she was not worried about the current level of funding "it's about what happens in future, that will not recognise that we have a higher percentage of farmers relative to other parts of the United Kingdom".

Speaking after the session, Plaid Cymru agriculture spokesperson in Westminster Ann Davies said her party had "on several occasions raised these concerns with UK government ministers, who have failed to provide clarity or assurances that future funding will reflect Wales' higher proportion of farmers".

"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 said: "The Budget provided the Welsh government with a record £21bn settlement and it receives over 20% more funding per person than equivalent UK government spending.

"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."

The first minister also told the MPs she had talks with Chancellor Rachel Reeves earlier on Wednesday.

The discussions included threats to steel and President Trump's plan to impose a 25% tariff on steel imported 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," she 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."

Later, Morgan is attending a dinner hosted by the King at Windsor Castle.

Sir Keir Starmer and the first ministers of Northern Ireland, Scotland and Wales, as well as the Northern Ireland deputy first minister, will also be at the event.