Farming in the Uplands - ARCHIVE: Defra

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40 Farming in the Uplands Access to development funding by rural enterprises 109. The Rural Development Programme for England (RDPE) implements the rural development elements of the CAP. The RDPE provides grant support to improve the competitiveness of the farming and forestry sectors and diversification of the rural economy. 230 Under the previous government those RDPE grants were administered by Regional Development Agencies (RDAs). The RDAs also administered a Government fund for regional development. The Coalition Government has announced that RDAs are to be abolished and replaced by LEPs (Local Economic Partnerships) by March 2012. LEPs comprise local authorities and business leaders. The Government’s intention is that LEPs provide “strategic leadership in their areas to set out local economic priorities”. 231 In order to “create the right environment for business and growth”, the Government expects LEPs will want to tackle issues such as “planning and housing, local transport and infrastructure priorities, employment and enterprise and the transition to the low carbon economy...[and support] small business start-ups”. 232 110. The Regional Growth Fund (RGF) is a discretionary fund intended to “support increases in business employment and economic growth by funding regional capital projects”. 233 The LEPs are supposed to co-ordinate and assist in making bids to the Regional Growth Fund (RGF). The department noted that Regional Growth Fund bids were not restricted to LEPs. Private bodies, public-private partnerships (not exclusively LEPs) and social enterprises could submit RGF bids. 234 The European Regional Development Fund (ERDF) is aimed at economic regeneration projects promoted primarily by the public sector. In the past local authorities have received financial support through the ERDF and the LEPs will be encouraged to make bids to the fund in the future. The Government is looking at aligning the application processes for the ERDF and the RGF. 235 111. Following the abolition of the RDAs, RDPE funding will be administered in-house by Defra. 236 The Minister and Secretary of State have said that, once LEPS are fully functional, they will be looking to the LEPs to deliver RDPE funding as well. However, this is unlikely EMBARGOED ADVANCE COPY: Not to be published in full, or part, in any form before 00.01am GMT Wednesday 16 February 2011 to occur until after the new RDPE funding has been agreed, as part of the current round of CAP reform. The Minister believed that hill farmers required additional support. He encouraged rural communities and hill farmers to seek additional funding, which would have to come from Rural Development Programme money. 237 Accessing RDPE funding 230 Ev 78 231 Letter from the Departments for Business, Innovation & Skills and Communities and Local Government to Local Authority leaders and business leaders, 29 June 2010; see http://www.communities.gov.uk/documents/localgovernment/pdf/1626854.pdf 232 Letter from the Departments for Business, Innovation & Skills and Communities and Local Government to Local Authority leaders and business leaders, 29 June 2010; see http://www.communities.gov.uk/documents/localgovernment/pdf/1626854.pdf 233 HC Deb, 20 July 2010 : col 300W 234 Ev 84 235 HL Deb, 3 February 2011, col 86WS 236 Qq 102, 16, 11, 10 237 Qq 171, 182
EMBARGOED ADVANCE COPY: Not to be published in full, or part, in any form before 00.01am GMT Wednesday 16 February 2011 Farming in the Uplands 41 will therefore be crucial for upland communities and farmers; a point reflected in the CRC’s High ground, high potential recommendation that: Delivery bodies with Less Favoured Areas within their jurisdiction should review the extent to which RDPE funding is sufficiently accessible to upland farms and rural businesses (especially those relating to enterprise investment and rural business support). The South West Uplands Federation was cautious about the CRC’s recommendation, arguing that: Whilst we support the principle of making RDPE funding more available to upland farms there is some anecdotal evidence to suggest that those successful in securing financial support to diversify or to participate in local marketing initiatives often then abandon or reduce their moorland grazing. 112. The NFU’s memorandum notes that the greater flexibility and localism LEPs could offer would be beneficial to the uplands. However, the NFU note that “few LEPs have highlighted agriculture as a priority to date and there is significant uncertainty over their future role”. In a report on LEPs and rural interests, the CRC concluded that An initial reading of some of the proposals for LEPs indicated a similar patchy recognition of rural economies’ contributions. They range from those that have fully recognised their rural constituents to others, even where they incorporate sizeable rural areas, that have failed to reference them. 238 According to the department “areas of the country, including rural areas, not currently part of a LEP could potentially be part of one in the future”. 239 113. Upland communities and farmers are being encouraged to seek funding to enable them to develop. However, the new bodies, LEPs, that should be encouraging innovation and growth, appear to lack the significant expertise and knowledge found in the RDAs to assist rural business. We conclude that some Local Enterprise Partnerships (LEPs), that cover rural areas, appear to lack interest in, and knowledge about, rural issues. In addition, significant rural areas are not currently covered by LEPs. We encourage rural and farming representative organisations engage with LEPs. We recommend that Defra engage with the Department for Business, Innovation and Skills about including consideration of rural needs, where appropriate given the geography, as part of the criteria for selection of future LEPs. 114. There is a lack of clarity about the current position and how Rural Development Programme for England (RDPE) funding will be provided now and in the future. We recommend that Defra provide a clear and precise description of how funding will be provided across the country, with or without LEPs. We further recommend that Defra produce clear guidance for farmers and rural communities as to how RDPE funding will be administered now and in future. 238 Recognising rural interests within Local Enterprise Partnerships, November 2010, Commission for Rural Communities 239 Ev 84
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Farming in the Uplands - ARCHIVE: Defra

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