Today, I am announcing the Government’s decision on the allocation of the common agricultural policy (CAP) budget for the period 2014-20 within the UK. This will set out how the funds allocated to the UK for direct payments to farmers (pillar 1) and rural development (pillar 2) will be divided between England, Scotland, Wales and Northern Ireland.

Under the EU budget deal agreed by the European Council in February, the UK has, in principle, been allocated €25.1 billion in nominal terms in direct payments (pillar 1) and €2.6 billion in pillar 2 over the period 2014-20. It will deliver very significant sums of money to UK farmers and other CAP recipients.

Before making a decision on how to divide the funds between England, Scotland, Wales and Northern Ireland, I sought and considered the views of Agriculture Ministers in each of the devolved Administrations. I also sought and considered views from stakeholders across the UK.

As the UK’s pillar 1 funds will be reduced over the next budgetary period, the Government have decided that the most appropriate way of allocating this cut is through an equal proportional reduction to the financial ceilings across the four regions. This means that, over the next CAP programme, subject to final confirmation of the EU budget, the Administrations will receive:

Similarly, the Government have decided that the change in our pillar 2 allocation should be distributed equally among the four regions. This means that, over the next CAP programme the Administrations will receive:

This announcement gives clarity to each of the Administrations as they plan how to implement the 2014-20 CAP. In England we are currently consulting on the details of implementation.