The Savills Portfolio

Landscope

12 August 2020

Since it was commissioned over a year ago, the National Food Strategy has only become more relevant.

Part one has just been published and Henry Dimbleby, the lead author, argues that Covid-19 has given a new urgency to the ‘slow-motion disaster’ of the British diet. He also recommends fast-tracking ELMs and a thorough scrutiny of new trade deals to ensure our standards are not compromised, taking a position which the agricultural industry will welcome.

The government has also unveiled a new strategy of its own, on how it intends to get Britain building and fix the undersupply of new homes. The proposals for a new planning system would be the most significant reform in a generation and aim to speed up getting planning permission by giving outline approval for uses via an accelerated local plan making process.

 

FOOD & FARMING

National Food Strategy unveiled
The first of a two-part National Food Strategy has been unveiled. It contains urgent recommendations to support the country through the turbulence caused by the Covid-19 pandemic, and to prepare for the end of the EU exit transition period. The report acknowledges that, despite trembling at the initial impact of Covid-19, the food supply chain demonstrated flexibility, entrepreneurialism and resilience. There were tragic losses however and workers in the food production and retail sectors saw some of the highest death rates from the pandemic. The hospitality sector suffered one of the largest economic hits too, with a higher proportion of furloughed staff, and expected redundancies, than any other profession.

Despite the resilience of the food supply chain, the virus and the report has highlighted that food demanded, supplied and consumed in the past has left our health worse off. Diet-related illness is one of the top three risk factors for dying from Covid-19, giving “new urgency to the slow-motion disaster of the British diet”. But even before the pandemic, poor diet was responsible for one in seven deaths in the UK (90,000 a year); vastly more than the death toll from traffic accidents (1,780 a year) and almost as fatal as smoking (95,000).

Recommendations cover two broad themes. Firstly, making sure a generation of our most disadvantaged children do not get left behind. The report says “eating well in childhood is the very foundation stone of equality of opportunity” and adds “it is essential for both physical and mental growth.” Secondly, grasping the opportunity to decide what kind of trading nation we want to be. The report recommends that the government should only agree to cut tariffs in new trade deals on products which meet our core standards, covering animal welfare, environmental and climate protections. It calls for an independent report on all proposed trade agreements to be legally required, this would assess their impact on: economic productivity; food safety and public health; the environment and climate change; society and labour; human rights; and animal welfare. These are recommendations which the agricultural industry will welcome.

Part two is expected later in 2020 and will contain a more comprehensive plan for transforming the food system. Whilst it was not its focus, the first report does describe the way we produce our food as “the mother of all sustainability issues”, and calls for government both to accelerate the implementation of the new Environmental Land Management scheme and to be bolder in its ambitions.

Red tape cut for farmers
To simplify the Basic Payment Scheme (BPS) in England and cut red tape faced by farmers, the government plans to remove the greening requirements with effect from the 2021 scheme year. Currently 30% of a farmer’s BPS payment is attributed to compliance with the greening requirements, and this funding will continue even once the obligations are removed. The greening rules were originally introduced to protect permanent grassland, prevent monoculture cropping and create additional habitat. However, these measures have proved to deliver little additional environmental benefit. The European Court of Auditors estimated that greening has only led to a change in farming practice on around 5% of all EU farmland. So whilst axing environmental rules may appear to be going against the grain, the government is on secure footing. There is now an opportunity for farmers to reconsider their participation in Countryside Stewardship (CS) and begin working on plans to use their Ecological Focus Area features within a CS agreement ready for when the application window opens in 2021. Click here to view our full briefing note on the changes.

Consultation on gene editing promised
Defra minister Lord Gardiner has announced that there will be a public consultation on gene editing in the autumn. This comes after strong interest in the topic as the Agriculture Bill progresses through Parliament. A recent amendment debated in the House of Lords would have exempted products of newer genetic engineering technologies from regulation. The amendment was met with strong support and only withdrawn after the government made a strong commitment to promote the wider use of gene editing in the UK.

A new-born calf is being hailed as the latest success of the CRISPR gene-editing tool. The tool was used by US scientists to insert a gene into a beef cow embryo that increases the likelihood of male offspring in the future and of female offspring having ‘male’ traits in muscle growth. If the experiment proves to be a success, 75% of offspring are expected to have male traits. Overall, bulls are about 15% more efficient than heifers at converting food into muscle mass. It is therefore hoped that the technique will lead to improved productivity, if the technique can gain regulatory approval.

Wheat yields from indoor farming
A research study has shown that vertical wheat farming could produce 1,940 metric tonnes of wheat per footprint ‘hectare’, compared to a UK average of 8.4 tonnes from traditional methods. While vertical farming could clearly produce much more wheat, at present costs it would also consume far more energy making it economically unviable. But with cheaper renewable energy or a dramatic rise in grain prices, the technology could become relevant in the future. The research, published in Proceedings of the National Academy of Sciences, used a crop simulation model which has been shown to be highly accurate in predicting crop growth under a wide variety of conditions. Its assumed ‘1 hectare’ vertical wheat farm had 10 storeys each with 10 layers of wheat, so an effective surface area of 100 hectares, and produced a yield of 19.4 tonnes per actual hectare. This means the indoor wheat yield was 130% higher than the UK average for standard production, but only 12% above the world record yield set in New Zealand during February.

Cost of rural crime increases
Rural crime cost the UK £54.3 million in 2019, an increase of nearly 9% on 2018 according to a report by NFU Mutual. The rise was largely driven by the theft of agricultural vehicles (up £1.9 million), quadbikes (up £500,000) and other farm vehicles such as the Land Rover Defender (up £500,000). Livestock theft also increased due to gangs taking large numbers of sheep and selling them into the food supply chain illegally. Every region saw an increase in the cost of rural crime, with the largest increases in Scotland (up by 44% to £2.3 million) and the East (up by 17% to £8.1 million). The cost of crime did fall in some counties: Kent, formerly the worst affected county in 2018, saw a notable 31% decrease in costs from £2.7 million to £1.8 million. Staffordshire and Derbyshire also saw significant decreases.

 

Covid-19

Funding the recovery from Covid-19
More small businesses are now able to apply for loans of up to £5 million under the Coronavirus Business Interruption Loan Scheme (CBILS). Previously businesses which were classed as ‘undertakings in difficulty’ were unable to apply. Undertakings in difficulty are usually businesses with high levels of debt and accumulated losses. Those which have fewer than 50 employees and a turnover of less than £9 million can now apply to CBILS. They are already eligible for Bounce Back Loans subject to de minimis state aid limits.

To help smaller businesses recover, £20 million of new government funding has been set aside. It will be used to offer grants of between £1,000 and £5,000 for new technology and other equipment as well as professional, legal, financial or other advice. The funding will be distributed across England by Growth Hubs.

Applications are also open for the £92 million Culture Recovery Fund for Heritage. The fund is designed to support heritage organisations that are at risk of no longer trading viably this financial year, it will prioritise applicants that are of national or international significance. Grants are available from £10,000 up to £3 million. Those who have already received funding may still apply. Applications can be made here, and the deadline is midday on 17 August. The new fund is part of the wider £1.57 billion Culture Recovery Fund announced during July by the Culture Secretary Oliver Dowden.

 

POLICY

Trade and Agriculture Commission launched
International Trade Secretary Liz Truss has launched the new Trade and Agriculture Commission at a Whitehall event. Animal welfare, consumer and environmental groups met with the Department for International Trade to talk about how they can support the Trade and Agriculture Commission in its goals. The Commission has already met for the first time and will advise on:

• Trade policies to secure opportunities for UK farmers, while ensuring the sector remains competitive and that animal welfare and environmental standards in food production are not undermined

• Advancing and protecting British consumer interests

• How the UK engages the WTO to promote animal welfare

• New export opportunities for the agricultural industry.

Its chair, Tim Smith, says the commission is committed “to providing the government with robust, evidence-based advice on ensuring that trade policy is fair for consumers, farmers and producers”. The commission reports directly to the Secretary of State for International Trade and will produce an advisory report at the end of its six months’ term.

 

ENVIRONMENT & NATURAL CAPITAL

Savills joins parliamentary group on Net Zero
Savills UK has joined the All Party Parliamentary Group (APPG) on Net Zero. The APPG is a cross-party and cross-industry working group which aims to accelerate policy change, promote zero carbon solutions, support clean growth technology and ultimately embed the UK’s commitment to deliver a net zero carbon economy. Tom Hill, director of environmental economics within the planning team, said “Savills UK’s participation in the APPG is a way for us to increase our influence in relation to the net zero agenda. I am very keen that we bring together Savills cross-sector expertise from around the business to inform our contribution to the group and maximise the benefit of our membership.”

ELM fails to impress
The Tenant Farmers Association (TFA) has described government proposals for the new Environmental Land Management scheme (ELM) in England as disappointing. While the organisation supports the development of a new agri-environment scheme, it believes it “should not be developed in isolation from work which will support agricultural resilience, productivity and future profitability.” TFA Farm Policy Adviser, Lynette Steel said, “the proposal for ELM outlined by Defra is lacking in aspiration. It is also less comprehensive and innovative than previous discussions with Defra would have suggested.” The TFA added that the scheme should only be made accessible to active farmers and it should also be made relevant to those who do not own the land they farm.

Beaver reintroduction trial successful
Two family groups of beavers have now successfully bred and dispersed, creating up to 15 territories and 28 dams on the River Otter in Devon. The trial has brought several benefits to the local area and ecology including the creation of wetland habitat, reduction in flood risk, improvement in water quality and enhancement of the environment. The five-year trial run by the Devon Wildlife Trust and licensed by Natural England ends on 31 August 2020, but the beavers will be allowed to remain there permanently and expand their range naturally. Later this year, the government will consult on a strategy for the management of beavers in the wild and a national approach for any further releases of formerly native species.

 

PROPERTY & DEVELOPMENT

Planning shake-up announced
The government proposes tearing down “our outdated and ineffective planning system” and starting again. Boris Johnson described current policy as being “designed and built in 1947” and “patched up here and there over the decades”. In its place, he wants a “clearer, rules-based system” with red tape being cut and technology harnessed to deliver homes faster.

In its white paper Planning for the future the government proposes once in a generation reforms to create a new planning system with sustainable communities at its heart. Every area will be required to have a local plan in place, rather than the present 50% coverage. To achieve this, the local plan process will be sped up so that a plan can be developed and agreed in 30 months, rather than taking an average of seven years. Within those plans, land will be classified for growth, renewal, or protection, as decided through local consensus. Within growth areas, there would be automatic outline approval for forms and types of development specified in the plan, with a condition that all homes built would be net zero compliant.

The way that development funds new infrastructure and affordable homes will also be simplified. Section 106 agreements and the Community Infrastructure Levy would be replaced with a new Infrastructure Levy set at a fixed proportion of the value of the development above a fixed threshold. Revenues would be spent on local projects such as new roads, playgrounds and discounted homes for local, first-time buyers. The First Homes scheme will provide newly-built homes at a 30% discount for local people, key workers and first-time buyers. The discount will be locked into the home in perpetuity to ensure future buyers can continue to benefit from it.

The government has almost immediately been forced onto the defensive however, with criticism even coming from Tory MPs themselves. Conservative MP Geoffrey Clifton Brown said “we've got to be really sure we're not building slums of tomorrow by building today at low quality." Opposition leader Keir Starmer branded the new plans a “developers’ charter” that removes councils and communities from the process. A consultation on the proposals is running until 29 October. David Jackson, Head of Planning at Savills comments on the proposals and what’s, missing in this blog.

 

OTHER RURAL NEWS

New designated landscapes?
The UK government has selected Scotland’s Flow Country to be its next nominee for UNESCO World Heritage Site status. The Flow Country in Caithness and Sutherland is regarded by many as being the best blanket bog of its type in the world. An application will now be prepared for submission to UNESCO in 2023.

In England, plans to create a West Midlands National Park have taken a step forwards after the West Midlands Combined Authority signed a memorandum of understanding with Birmingham City University. The university will continue to develop plans for a park which would be very different from a traditional national park. It would bring the experience of national parks to urban populations rather than expecting people to travel to remote places. The park will also help achieve ambitions to become a greener, healthier and more inclusive region that tackles the climate emergency and reaches net zero carbon emissions by 2041.

And finally…
Naturalist gets too close to nature
Nature got a bit too close for comfort for one naturalist who was sunbathing at a popular spot in Berlin. As he bathed, a boar and her two piglets calmly ate a pizza from his backpack. The boar then set their eyes on the contents of a yellow plastic bag for dessert and snatched it away. But rather than cake, the bag contained the sunbather’s laptop. The naked man realised and gave chase, much to the amusement of fellow sunbathers. Onlookers said “he was very focused and ran behind the boars in order to get it back." As he returned, bag in hand, fellow sunbathers “clapped and congratulated him for his success". The incident comes just days after a fox in Berlin walked off with dozens of shoes which had been left in residents’ gardens.