Revealed: how we pay our richest landowners millions in subsidies

Prince Charles, Serco and the Duke of Westminster - an NS investigation reveals who benefits from the EU's Common Agricultural Policy.

Were David Cameron to announce tomorrow that some of the wealthiest landowners in the country would receive millions in subsidies from the taxpayer, there would be predictable outrage. Yet, in the form of the EU's Common Agricultural Policy (CAP), such a programme already exists. The average British household contributes £245 a year to the CAP, most of which, a New Statesman investigation has found, is handed to the wealthiest landowners. Originally established with the intention of supporting small farmers and reducing Europe’s reliance on food imports, the CAP, which accounts for 43 per cent (€55bn) of the EU budget, has become a slush fund for assorted dukes, earls and princes.

A freedom of information request by the NS to the Department for Environment, Food and Rural Affairs found that claimants last year included the Duke of Westminster (net worth: £7.4bn), who was paid £748,716 for his ownership of Grosvenor Farms, the Duke of Buccleuch (£180m), who received £260,273, the Duke of Devonshire (£700m), who received £251,729, and the Duke of Atholl, who was paid £231,188 for his 145,000 acre Blair Castle Estate.

It was also a lucrative year for the Windsor family. The Queen received £415,817 for The Royal Farms and £314,811 for the Duchy of Lancaster, while Prince Charles was paid £127,868 for the Duchy of Cornwall. Similarly well remunerated was Saudi Arabia’s Prince Bandar, who netted £273,905 for his 2,000 acre Glympton Estate in Oxfordshire, alleged to have been purchased with the proceeds of the 1985 Al-Yamamah arms deal between Britain and Saudi Arabia.

Revealed: what we paid out in 2011 to the landowners of the United Kingdom

Payments are based on acreage alone, and take no account of wealth, making the scheme one of the most regressive imaginable - the more you own, the more you get. In addition, since the EU’s definition of “farmer” does not require individuals to actively produce food or other agricultural products, many recipients are, in effect, paid not to farm. The largest individual UK beneficiary is Sir Richard Sutton, who was paid £1.7m for his Settled Estates, the 6,500-acre property he inherited with his baronetcy in 1981, despite net assets of £136.5m.

Other unlikely recipients include Eton College, which received £4,622, Severn Trent Water, which was paid £779,436, and outsourcing company Serco, currently cashing in on the government’s privatisation of NHS services, which, courtesy of the public, received £2.7m.

With the exception of Spain, there is no European country in which land is more unequally distributed than Britain, with 70 per cent of acreage held by just 0.28 per cent of the population, or 158,000 families.

Aware that it cannot legitimately sustain such corporate welfare at a time of austerity, the EU has vowed to reform the programme by capping direct payments at  €300,000 and by ensuring that only "active" farmers receive subsidy. But even under these proposals, due to be implemented in 2014, aid will still be provided to landowners who derive just five per cent of their annual revenue from agricultural activity, whilst, in the case of the cap, the biggest farms will simply avoid it through restructuring.

The Conservative Party now rarely misses a chance to bash Brussels bureaucrats, yet, due to its enduring ties to the landed gentry, one hears little from it about the inequity of the CAP or the order it helps sustain. But as the Thatcherite dream of a property-owning democracy recedes, it should recognise that land reform is now both a political and an economic necessity.

The full version of this piece appears in tomorrow's New Statesman.

Prince Charles with the Duke of Westminster, both of whom benefited from the CAP last year. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Photo: Getty
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Rising crime and fewer police show the most damaging impacts of austerity

We need to protect those who protect us.

Today’s revelation that police-recorded crime has risen by 10 per cent across England and Wales shows one of the most damaging impacts of austerity. Behind the cold figures are countless stories of personal misery; 723 homicides, 466,018 crimes with violence resulting in injury, and 205,869 domestic burglaries to take just a few examples.

It is crucial that politicians of all parties seek to address this rising level of violence and offer solutions to halt the increase in violent crime. I challenge any Tory to defend the idea that their constituents are best served by a continued squeeze on police budgets, when the number of officers is already at the lowest level for more than 30 years.

This week saw the launch Chris Bryant's Protect The Protectors Private Member’s Bill, which aims to secure greater protections for emergency service workers. It carries on where my attempts in the last parliament left off, and could not come at a more important time. Cuts to the number of police officers on our streets have not only left our communities less safe, but officers themselves are now more vulnerable as well.

As an MP I work closely with the local neighbourhood policing teams in my constituency of Halifax. There is some outstanding work going on to address the underlying causes of crime, to tackle antisocial behaviour, and to build trust and engagement across communities. I am always amazed that neighbourhood police officers seem to know the name of every kid in their patch. However cuts to West Yorkshire Police, which have totalled more than £160m since 2010, have meant that the number of neighbourhood officers in my district has been cut by half in the last year, as the budget squeeze continues and more resources are drawn into counter-terrorism and other specialisms .

Overall, West Yorkshire Police have seen a loss of around 1,200 officers. West Yorkshire Police Federation chairman Nick Smart is clear about the result: "To say it’s had no effect on frontline policing is just a nonsense.” Yet for years the Conservatives have argued just this, with the Prime Minister recently telling MPs that crime was at a record low, and ministers frequently arguing that the changing nature of crime means that the number of officers is a poor measure of police effectiveness. These figures today completely debunk that myth.

Constituents are also increasingly coming to me with concerns that crimes are not investigated once they are reported. Where the police simply do not have the resources to follow-up and attend or investigate crimes, communities lose faith and the criminals grow in confidence.

A frequently overlooked part of this discussion is that the demands on police have increased hugely, often in some unexpected ways. A clear example of this is that cuts in our mental health services have resulted in police officers having to deal with mental health issues in the custody suite. While on shift with the police last year, I saw how an average night included a series of people detained under the Mental Health Act. Due to a lack of specialist beds, vulnerable patients were held in a police cell, or even in the back of a police car, for their own safety. We should all be concerned that the police are becoming a catch-all for the state’s failures.

While the politically charged campaign to restore police numbers is ongoing, Protect The Protectors is seeking to build cross-party support for measures that would offer greater protections to officers immediately. In February, the Police Federation of England and Wales released the results of its latest welfare survey data which suggest that there were more than two million unarmed physical assaults on officers over a 12-month period, and a further 302,842 assaults using a deadly weapon.

This is partly due to an increase in single crewing, which sees officers sent out on their own into often hostile circumstances. Morale in the police has suffered hugely in recent years and almost every front-line officer will be able to recall a time when they were recently assaulted.

If we want to tackle this undeniable rise in violent crime, then a large part of the solution is protecting those who protect us; strengthening the law to keep them from harm where possible, restoring morale by removing the pay cap, and most importantly, increasing their numbers.

Holly Lynch is the MP for Halifax. The Protect the Protectors bill will get its second reading on the Friday 20th October. 

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