HLS Delivery Programme

HLS Delivery Programme AESG meeting 4.10.11 John Finnie

Contents 2011-12 HLS programme (including expiring ‘classic’ agreements )2012/13 HLS programme(including expiring ‘classic’ agreements) Historic & Traditional Buildings expenditureDetermining capital spend under HLS

1. 2011-12 HLS programme • Last year, NE offered 1,656 HLS agreements worth £39.4m, covering 166 k ha under HLS options. • This year Defra has given NE £41m to offer and asked that it covers at least 250 k ha under HLS options. • NE has also been asked to increase the number of new HLS agreements. This year, we aim for around 2400. • NE has also been asked to deliver HLS more effectively (through ‘refocusing’) and more efficiently (by faster 3-tier processes and fewer staff).

1. 2011-12 HLS programme (2) • In order to make sure we do deliver the full budget, we are working with farmers on >2400 agreements worth >£41m. • So Local Advisers started working on 2936 potential agreements, worth £46m and have given 2,504 approvals to FEP. • We have already completed 1560 agreements worth £26.3m. We are on track to complete £41m. • As usual, we shall balance the budget by balancing the proposed start dates between 2011/12 and 2012/13.

1. 2011-12 HLS programme (3) • The table shows the number agreements completed to date, the number on which we are working and the total budget.

1. 2011-12 HLS programme (4)Classics • 2011-12 HLS) • Overall transfer from classics to HLS, measured by area, is now 48%. (The overall transfer rate to ES is now 85%). • 2,587 classic agreements covering 124,855 ha expire in 11/12. • Currently we expect that about 962 will go into HLS. c631 of these will start in 11/12 and c331 in 12/13. • We will also be taking forward 205 agreements from classics that expired in earlier years, which for various reasons were not be brought into HLS before.

1. 2011-12 HLS programme (5)Classics • 2011-12 HLS) • As well as the 962 and 205 ex-classic agreements, we are also working this year on applications for >500 classic agreements that expire in 12/13 onwards. • Our general aim now is that where HLS is the appropriate successor to the classic agreement, we aim to make the transfer in the same financial year as the classic agreement expires. • In parallel to this, we will no longer generally be bringing forward new proposals for early closure of classics.

1. 2011-12 HLS programme (6)Classics • 2011-12 HLS) • This change will mean: • Simpler compliance with scheme rules, especially around UTP payments. • Spreading the peak of FEP work for expiries by using the window between ‘live dates’ and ‘start dates’, which allows us to commission and pay for FEPs earlier than before. • Removing the risk of a potential anomaly with some farmers having to wait for HLS whilst others are brought forward early.

2. 2012-13 HLS programme • Under our new 3-tier procedures, we can now start to share information with you on the 12/13 programme, earlier than ever before. • Subject to the final budget, we are again planning to offer about £41m.

2. 2012-13 HLS programme (2) • The 12/13 programme splits roughly into two parts. • Agreements that need to start in May 2012 when former classics expire (expiries on 30/4/12). We have already given approval to commission a FEP in 576 cases. • The bulk of agreements, which are not tied to classic agreements expiring early in 12/13.

2. 2012-13 HLS (4) • For the bulk of the proposed agreements, the process has five main stages: • Initial scoping of potential HLS cases by NE advisers, plus partners’ advice • Contacting farmers and inviting them to contact FEP agents • Clinics with FEP agents • Approval by NE of proposed programme • Formal approval to farmer or agent to commission the FEP (if not “fast-track”) and submit the application = refining down to 12/13 programme

2. 2012-13 HLS (3) • -Initial scoping of potential HLS cases by NE advisers, plus partners’ advice.....3445 • Contacting farmers and inviting them to contact FEP agents..............1023 • Clinics with FEP agents.....690(approx) • Approval by NE of proposed programme...?October • Formal approval to commission the FEP and submit the application........................?

2. 2012-13 HLS (4) • Progress towards establishing the 12/13 programme

2. 2012-13 HLS (5)Classics • 2011-12 HLS) • 4,604 classic agreements covering 149,903 ha expire in 12/13. • Local advisers have completed an initial sift of the 4604 and identified 2876 12/13 expiring classics that might merit HLS. These need further refining. • Those that at the initial sift looked to merit ELS rather than HLS will be offered ETIP advice. Letters to such farmers whose agreements expire on 1 May 2012 have already been sent.

3. Historic & Traditional Buildings expenditure • Budget for HTB is separate from the main HLS budget. • In 2010/11 we spent £6m (up from 2.9m the year before.) • We have a budget of £8m this year. • We have a budget of £13m from April 2012 to December 2013.

3. Historic & Traditional Buildings expenditure (2) • Demand is there for the full £21m • Selection is already on a coordinated national basis, developed with English Heritage. • Defra have asked us to limit spending to £150k per case, to allow support to be provided for more individual cases.

4. Determining capital spend under HLS • Capital works come from the same HLS budget at other options, except for access and historic buildings. (They have separate budgets.) • We aim to fund a large number of HLS agreements and more extensive agreements, by focusing new capital payments on works which are essential to deliver individual key outcomes and targets.

Contents • Likely agreement numbers • Basis for HLS agreement and option selection • Working with stakeholders and partners.

HLS Delivery Programme