Ministers have pledged £70 million of taxpayer’s money to foreign farmers despite the ongoing row about the Government’s tax raid on British agriculture at home.
On Thursday ministers promised millions to agricultural businesses across Asia and Africa after reaffirming its commitment to the “Global Hunger and Poverty Alliance”, led by Brazil.
Anneliese Dodds, the development minister, said: “With the climate emergency increasingly preventing the world’s most vulnerable families from having enough to eat, it’s time for a new approach.”
Ms Dodds promised £50 million to tackle food security in countries such as Ethiopia, Chad and Bangladesh. Another £25.5 million has been offered to agricultural businesses and small holders across Africa and Asia.
The funding will be delivered over the next 18 months in order “to enable food-insecure households to withstand shocks, drive green growth in the agriculture sector, and improve social protection for those in need,” the Government said.
It adds to the £32 million already pledged to help scale up African agricultural businesses under the scheme.
The announcement comes amid an ongoing row between the Government and farmers over its agricultural tax raid.
In the Budget, the Chancellor pledged to cut relief on inheritance tax for British farmers in order to raise around £500 million for the Exchequer.
The Government has said the changes will not impact the UK’s food security, despite warnings from farmers. It has not yet disclosed any official impact assessment of the policy, which would be likely to give a judgement on its effect on food security.
Ministers claim the policy will only impact the richest farmers. However concerns have been raised about the knock-on effects for tenant farmers who do not own the land they work. They face being evicted by landlords seeking more profitable ways to raise money that can pay off inheritance tax bills, the Tenant Farmers Association has warned.
New analysis of UK development spending showed more than £536 million is being spent across ten programmes in Africa, Asia, and South America, including in Brazil, the world’s 11th-richest country. The scheme in Brazil is intended to support low-carbon farming.
Many of the schemes were undertaken by the previous Conservative government and run for a number of years. A £206 million scheme agreed in 2012 is expected to run until 2031.
Robert Jenrick, the shadow justice secretary, said the Government was “spending hundreds of millions on foreign farmers while British livelihoods are destroyed by their cruel inheritance tax changes”.
The Government was contacted for comment.
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