Cabinet Secretary's announcement on Scotland Rural Development Programme - Tuesday, 3 August 2010
Richard Lochhead, Cabinet Secretary for Rural Affairs and the Environment, has announced changes to the Rural Priorities scheme. Some further information is below for your benefit.
Key facts
- Funding for community services and facilities projects and local development strategies will now be considered under LEADER through Local Action Groups (LAGs), instead of under Rural Priorities and the RPACs. Some £13.3 million has been re-allocated to support this change.
- The autumn 2010 RPAC round for Rural Priorities will focus on Axis Two (agri-environment and forestry) projects only.
- Any Axis One or Three projects submitted by 2 August (and subsequently committed by 6 September) will be considered at the first RPAC round in 2011. The date for this has yet to be set but will be announced as soon as it is known.
- Any Axis One (business development) applications submitted after 2 August will have the potential award capped at £250,000 per project.
- The Scottish Government is considering introducing a continuous assessment process for smaller scale Rural Priorities projects.
- Letters will be sent informing those applicants whose project is affected.
Question and Answer
Communities Services and Facilities (CSF) transfers from Rural Priorities to LEADER
Q1 Why are you transferring Community Services and Facilities (CSF) from Rural Priorities to LEADER?
A1 For the following reasons:
- It allows decisions on CSF project funding to be made at a local level.
- It ensures that support is tied into local development strategies and provides community benefit. It also provides better targeted support as Local Action Groups (LAGs) can vary grant award levels.
- It adds flexibility to CSF applications, by not tying them to the rigid RPAC structure.
- With the agreement of the lead local authority, LAGs can provide support to CSF projects in advance of need. There is no such provision under Rural Priorities.
Q2 Why is the transfer to LEADER happening now?
A2 The transfer responds to requests from community groups for access to support in advance of need. LEADER can provide advance support; Rural Priorities cannot. Cabinet Secretary first announced the plans in September 2009, since when Scottish Government officials have been discussing the precise arrangements with the LEADER Local Action Groups.
Q3 What if I have submitted a current CSF application under Rural Priorities?
A3 If it was committed by the 5 July Rural Priorities deadline, it will be dealt with under the August RPAC arrangements. Otherwise, it will be dealt with under LEADER arrangements. The Rural Priorities team will write to all those affected by this change, and the Rural Direct Service will assist those applicants not covered by the August RPAC to help them complete their LEADER application.
RURAL PRIORITIES
Q4 Why are you making these changes to Rural Priorities?
A4
- The CSF transfer responds to requests from community groups for access to support in advance of need. LEADER can provide advance support, whereas Rural Priorities cannot.
- Timely approval of Axis Two applications will allow participation in the Rural Priorities scheme in 2011 (and declaration on the 2011 Single Application Form (SAF).
Q5 Why are you announcing this now?
A5 The decision to announce this now flows from agreement reached on the transfer of CSF to LEADER. Much work had to be done to secure that agreement. The other changes reflect current analysis of the Rural Priorities awards to date, and the need to ensure that rural Scotland gets maximum benefit from the Programme.
Q6 Is the Programme running out of money?
A6 There was only so much money in the pot in the first place. We are in the most challenging economic climate for many years and any amount of public funding that is available should be welcomed. With the current pressure on public funds across the board, we have to make absolutely sure that the money we have to support rural communities and businesses in Scotland goes as far as it can.
The previous act of bringing forward £25 million of Axis One business development funding from future years means that many businesses and suppliers are already feeling the benefit in these challenging times.
Q7 What rate will apply to my Axis One application?
A7 If you submitted your Axis One application for more than £250,000 by the 2 August 2010 submit deadline, it will be considered for the higher level of funding at the first RPAC in 2011 as long as it is subsequently committed by 6 September 2010. All awards for Axis One applications submitted after 2 August 2010 will be capped at £250,000. If the application is across more than one axis, the capped rate applies only to the Axis One element of the application.
Q8 Why has Axis One been singled out for a cap?
A8 Rural Priorities must deliver best value for the remainder of the Programme, and it's not sustainable to fund Axis One applications for more than £250,000. By putting a cap on funding now, we're spreading the money out and giving more projects a chance of success over the course of the Programme. This will allow good projects to gain access to funding until much nearer the end of the Programme.
Q9 What about my large project which now won't go ahead?
A9 We have a responsibility to ensure maximum benefit is derived for the remainder of the Programme. A capped amount of funding to a wider range of projects means more people are able to benefit, and broad distribution of funding means a wider range of local suppliers and tertiary services will benefit.
All eligible Axis One projects seeking more than £250,000, and received by the October Regional Proposal Assessment Committee (RPAC) submit deadline of 2 August 2010, will be still be considered for that higher level of funding as part of the first 2011 RPAC round. The projects must be committed by 6 September 2010 to remain eligible for consideration of the higher level of funding.
Q10 What if I have an approved variation to my Rural Development Contract?
A10 As long as your application has been submitted by the 2 August deadline date, and all subsequent deadlines are met, your Axis One application will be eligible for the full amount.
Q11 Why have agri-environment and forestry projects been singled out as the focus for funding in the autumn round?
A11 Keeping this round open for agri-environment and forestry options ensures approved annual recurrent projects can commence at the start of the calendar year, be declared on the Single Application Form, and be eligible for support. Removing agri-environment applications from the October RPAC round would mean that no-one wishing to enter such a Rural Priorities application could participate before 2012.
Q12 What projects will be considered at the August RPAC round?
A12 Eligible projects covering all elements of the Rural Priorities scheme will be considered. The August round is not affected by the forthcoming changes and will proceed as normal.
Q13 What projects will be considered at the October RPAC round?
A13 The October RPAC round will be limited to Axis Two (agri-environment and forestry) applications. CSF applications will no longer be considered under Rural Priorities. Axis One and Three applications will be deferred to the first round of 2011.
Q14 What projects will be considered at the first RPAC round in 2011?
A14 Eligible projects covering all elements of the Rural Priorities scheme will be considered. Axis One projects for more than £250,000 will be considered provided they were submitted by 2 August 2010 (and committed by 6 September). All Axis One applications submitted after this date will be capped at £250,000.
Q15 When will a decision be made on applications for the summer (August) RPAC round?
A15 We expect an announcement around the end of September 2010.
Q16 What if my proposal for the October round has more than just agri-environment and forestry elements?
A16 There will be further instructions about this soon. Applicants will receive a letter to explain in due course.
Q17 What are the plans for the continuous assessment process for small scale Rural Priorities projects?
A17 This is currently under consideration by the Scottish Government. Specific details will be announced in due course.
Q18 What is happening to Axis One business development, Axis Three diversification and other types of Rural Priorities projects?
A18 All types of Rural Priorities projects will be considered at the first RPAC round of 2011. Any Axis One applications submitted after 2 August 2010 will, however, be capped at £250,000. CSF applications will no longer be considered under Rural Priorities.
Q19 Are there delays in making Rural Priorities payments?
A19 Capital payments are pretty well up to date, and we are meeting our target to pay eligible claims within three months of receipt. Since April 2009, we have paid 2,344 claims totalling around £42 million.
There are payments due for annual recurrent claims. To date, we have paid 696 claims totalling £5.17 million, and we aim to process the majority of the remaining annual recurrent claims by the end of August 2010.
Q20 What if I currently qualify as a young farmer, but would not do so for a 2011 RPAC round?
A20 Provided you commit your Rural Priorities application before your 40th birthday, you will be eligible for support as a young farmer at a future RPAC round.