Chapter 2: Direct Payments After EU Exit Section 11: Power to provide for phasing out direct payments
This section provides the power for the Secretary of State, during the agricultural transition period, to make reductions to Direct Payments under the basic payment scheme to phase the payments out.
	Subsection (1) empowers the Secretary of State to make regulations that apply reductions to payments made under the legislation governing the basic payment scheme (as defined in section 7(3)). This power is beyond the scope of section 9 which is concerned with modifications that, in the opinion of the Secretary of State, serve the purposes defined in that section.
	Subsection (2) refers to section 12(7) for the circumstances under which the power (and provisions made under it) in section 11(1) will cease to have effect. The power, and related provisions, to phase out the basic payment scheme will cease to have effect once delinked payments are introduced, as the introduction of delinked payments will automatically lead to the termination of the basic payment scheme.
	Subsection (3) defines the term "phasing out" as meaning the application of reductions to Direct Payments (under the power in section 11(1)). These reductions will be applied during the agricultural transition period (set out in section 8).
	Subsection (4) provides that where the greening payment has ended under the power in section 9(2), during the modification of the basic payment scheme, references to Direct Payments under the basic payment scheme exclude greening payments. This would not affect the overall money available, as the greening element of the budget would still form part of the overall basic payment scheme budget.
	Subsection (5) specifies that any regulations made under this section are subject to the affirmative resolution procedure.