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DEFRA - An update on capital grants

DEFRA - An update on capital grants Following early closure of the Capital Grant scheme last November and the following uncertainty regarding the treatment of undetermined applications caught in the system and any successor scheme, DEFRA have today released an update.

Treatment of Undetermined Applications


Sufficient funding has apparently been secured to allow processing of the over 4,000 undetermined applications caught in the system.

It appears these applications will now be determined under the ‘old’ scheme rules i.e. those in force at the time the applications were submitted; a relief no doubt for those affected.

No further action is required for those with undetermined applications, which should now be processed in the ‘usual’ way. If and when approved, applicants will receive an agreement offer and once accepted, can proceed with the works as planned.
 

The New and ‘Improved’ Capital Grants Scheme

DEFRA’s announcement also alludes to an ‘improved’ scheme that will be made available to applicants later this year.

Broadly, it appears the scheme will remain in a similar form to the ‘old’, with a rolling application window and continuing support for tree planting and investments that improve water quality, air quality and natural flood management, or restore and improve boundaries.

However, amongst the ‘improvements’ will be “controls to manage demand”.

True to form, limits will be set on how much applicants can apply for in each of the 4 categories. The new limits being:

• £25,000 for water quality
• £25,000 for air quality
• £25,000 for natural flood management
• £35,000 for boundaries, trees and orchards

Applicants will be able to apply for a grant covering items in more than one category (subject to the individual caps per category) but as before, will only be able to apply for a single agreement, per SBI, per year.

Further announcements are expected in due course but if the ‘improved’ scheme is of interest, please do not hesitate to contact us and we can notify you as soon as it opens.