A “shattering blow” has been dealt to farmers with the sudden pausing for new applications for environmental payments, according to the National Farmers’ Union.
The NFU says it was given just 30 minutes notice by the government that applications for the Sustainable Farming Incentive (SFI) were to close on Tuesday.
The post-Brexit scheme, launched in 2022, pays farmers and land managers to take up practices that improve productivity and protect the environment and climate.
Image: Protesters disrupted Defra Secretary Steve Reed’s speech at the NFU conference. Pic: PA
There were more than 100 options for farmers to choose from, including the management of hedgerows, organic farming development and providing habitat for wildlife.
The government says the budget for SFI has now been reached, adding that a “record” 50,000 farm businesses and more than half of all farmed land is now managed under the schemes.
Both Conservatives and Liberal Democrat politicians have criticised the move and the lack of any prior warning.
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But NFU president Tom Bradshaw said the decision showed “how little” the Department for Environment, Food And Rural Affairs (Defra) understood the industry.
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Fourth farmers’ protest through London
‘Growing disregard for agriculture within Defra’
“This is another shattering blow to English farms, delivered yet again with no warning, no understanding of the industry and a complete lack of compassion or care,” Mr Bradshaw said.
“Today’s terrible news was delivered with only 30 minutes warning to us before ministers briefed the press, leaving us unable to inform our members.
“There has been no consultation, no communication; there has been a total lack of the ‘partnership and co-design’ Defra loves to talk about. It is another example of the growing disregard for agriculture within the department.”
The government has said “every penny” in all existing SFI agreements will be paid to farmers, and outstanding eligible applications that have been submitted will also be taken forward.
It said details of a new SFI scheme will be announced following the Spending Review.
It was only last week that thousands of farmers were protesting outside Downing Street at the inheritance tax policy that’s angered so many in agriculture.
But one group representing farmers said on Tuesday the SFI decision is the “cruellest betrayal so far”.
The scheme was introduced under the Conservatives post-Brexit, to encourage sustainable farming.
It took years to develop – and was seen as world leading in a way of ensuring farming was both productive for the sector and protective of the environment.
Although a new scheme after the spending review is promised, many farmers will be left wondering whether it’ll be as comprehensive.
The National Farmers’ Union was preparing on Wednesday to release a report saying that farming confidence in England and Wales is at its lowest level ever.
It’s described Tuesday’s news as a “bleak irony”.
In a statement, minister for food security and rural affairs Daniel Zeichner said: “This government is proud to have set the biggest budget for sustainable food produce in history, to boost growth in rural communities and all across the UK, under our plan for change.
“More farmers are now in schemes and more money is being spent through them than ever before. That is true today and will remain true tomorrow.
“We have now successfully allocated the SFI24 budget as promised.”
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The government claims the last administration left the scheme uncapped – and they had to put a limit on to stop it running over budget.
‘Absolutely bonkers’
Olly Harrison, an arable farmer on Merseyside who organised the latest farming protest in London earlier this month, said the decision showed farmers were being “attacked from every single angle”.
“It’s just absolutely bonkers. The scheme worked. It was to replace what we had when we were in Europe [the EU] and a lot of farms embraced it, they were doing real good with it.”
“Why have we got people who don’t understand and don’t understand the environment in power?”
Edward Morello, the Liberal Democrat MP for West Dorset, told Sky News the decision will “alarm farmers across the UK” – and called for the government to “start listening and responding” to the agricultural community.
Tim Farron, the MP for Westmorland and Lonsdale, said the decision was made with “no warning”.
Conservative shadow farming minister Robbie Moore said the change was “absolutely scandalous”.
Tesla’s board has signed off a $29bn (£21.8bn) share award to Elon Musk after a court blocked an earlier package worth almost double that sum.
The new award, which amounts to 96 million new shares, is not just about keeping the electric vehicle (EV) firm’s founder in the driving seat as chief executive.
The new stock will also bolster his voting power from a current level of 13%.
He and other shareholders have long argued that boosting his interest in the company is key to maintaining his focus after a foray into the trappings of political power at Donald Trump‘s side – a relationship that has now turned sour.
Musk is angry at the president’s tax cut and spending plans, known as the big beautiful bill. Tesla has also suffered a sales backlash as a result of Musk’s past association with Mr Trump and role in cutting federal government spending.
Image: Tesla’s Elon Musk is seen on stage during an event in Shanghai Pic: Reuters
The company is currently focused on the roll out of a new cheaper model in a bid to boost flagging sales and challenge steep competition, particularly from China.
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The headwinds have been made stronger as the Trump administration has cut support for EVs, with Musk admitting last month that it could lead to a “few rough quarters” for the company.
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Tesla is currently running trials of its self-driving software and revenues are not set to reflect the anticipated rollout until late next year.
Musk had been in line for a share award worth over $50bn back in 2018 – the biggest compensation package ever seen globally.
But the board’s decision was voided by a judge in Delaware following a protracted legal fight. There is still a continuing appeal process.
Earlier this year, Tesla said its board had formed a special committee to consider some compensation matters involving Musk, without disclosing details.
The special committee said in the filing on Monday: “While we recognize Elon’s business ventures, interests and other potential demands on his time and attention are extensive and wide-ranging… we are confident that this award will incentivize Elon to remain at Tesla”.
It added that if the Delaware courts fully reinstate the 2018 “performance award”, the new interim grant would either be forfeited or offset to ensure no “double dip”.
The new compensation package is subject to shareholder approval.
Banks will still most likely have to fork out over discretionary commissions – a type of commission for dealers that was linked to how high an interest rate they could get from customers.
The FCA, which banned the practice in 2021, is currently consulting on a redress scheme but the final bill is unlikely to exceed £18bn. Overall, the result has been better than expected for the banks.
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Car finance ruling explained
Lloyds, which owns the country’s largest car finance provider Black Horse, had set aside £1.2bn to cover compensation payouts.
Following the judgment, the bank said it “currently believes that if there is any change to the provision, it is unlikely to be material in the context of the group”.
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‘Don’t use a claims management firm’
The judgment released some of the anxiety that has been weighing over the Bank’s share price.
Jonathan Pierce, banking analyst at Jefferies, said the FCA’s prediction was “consistent with our estimates, and most importantly, we think it largely de-risks Lloyds’ shares from the ‘motor issue'”.
Bank stocks have responded robustly to each twist and turn in this tale, sinking after the Court of Appeal turned against them and jumping (as much as 8% in the case of Close Brothers) when the Supreme Court allowed the appeal hearing.
Concerns about this volatility motivated the Supreme Court to deliver its judgment late in the afternoon so that traders would have time to absorb the news.
Thousands of motorists who bought cars on finance before 2021 could be set for payouts as the Financial Conduct Authority (FCA) has said it will consult on a compensation scheme.
In a statement released on Sunday, the FCA said its review of the past use of motor finance “has shown that many firms were not complying with the law or our disclosure rules that were in force when they sold loans to consumers”.
“Where consumers have lost out, they should be appropriately compensated in an orderly, consistent and efficient way,” the statement continued.
The FCA said it estimates the cost of any scheme, including compensation and administrative costs, to be no lower than £9bn – adding that a total cost of £13.5bn is “more plausible”.
It is unclear how many people could be eligible for a pay-out. The authority estimates most individuals will probably receive less than £950 in compensation.
The consultation will be published by early October and any scheme will be finalised in time for people to start receiving compensation next year.
What motorists should do next
The FCA says you may be affected if you bought a car under a finance scheme, including hire purchase agreements, before 28 January 2021.
Anyone who has already complained does not need to do anything.
The authority added: “Consumers concerned that they were not told about commission, and who think they may have paid too much for the finance, should complain now.”
Its website advises drivers to complain to their finance provider first.
If you’re unhappy with the response, you can then contact the Financial Ombudsman.
The FCA has said any compensation scheme will be easy to participate in, without drivers needing to use a claims management company or law firm.
It has warned motorists that doing so could end up costing you 30% of any compensation in fees.
The announcement comes after the Supreme Court ruled on a separate, but similar, case on Friday.
The court overturned a ruling that would have meant millions of motorists could have been due compensation over “secret” commission payments made to car dealers as part of finance arrangements.
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Car finance scandal explained
The FCA’s case concerns discretionary commission arrangements (DCAs) – a practice banned in 2021.
Under these arrangements, brokers and dealers increased the amount of interest they earned without telling buyers and received more commission for it. This is said to have then incentivised sellers to maximise interest rates.
In light of the Supreme Court’s judgment, any compensation scheme could also cover non-discretionary commission arrangements, the FCA has said. These arrangements are ones where the buyer’s interest rate did not impact the dealer’s commission.
This is because part of the court’s ruling “makes clear that non-disclosure of other facts relating to the commission can make the relationship [between a salesperson and buyer] unfair,” it said.
It was previously estimated that about 40% of car finance deals included DCAs while 99% involved a commission payment to a broker.
Nikhil Rathi, chief executive of the FCA, said: “It is clear that some firms have broken the law and our rules. It’s fair for their customers to be compensated.
“We also want to ensure that the market, relied on by millions each year, can continue to work well and consumers can get a fair deal.”