DEFRA Cuts: DEFRA faces 29% budget cut

DEFRA will have to cut its budget by 29% over the next four years, Chancellor George Osborne revealed in today’s (Wednesday’s) spending review announcement.

That equates to about £200m a year, slashing its £3bn annual spend to just 2.2bn by 2014-15.

The savings, in line with most predictions, will be delivered through a series of back-room spending cuts totalling £174m and deep cuts in the number of DEFRA-funded quangos, which will fall from 92 to 39.

Reducing red tape and “unnecessary burdens” on farmers and food producers will also be a key aim, with ministers likely to rely heavily on the Taskforce on Farming Regulation’s report due out early 2011.

Animal welfare cost sharing

Unsurprisingly, cost sharing for animal welfare and disease prevention and control remains very much on the agenda, with DEFRA claiming this will make more efficient use of resources.

Environmental schemes, thought to be a soft target, appear to escaped relatively unscathed. DEFRA said that such schemes would remain open to all farmers thanks to better use of matched European funding,

But how much the criteria will be tightened is not clear – DEFRA stated that schemes of most benefit to the environment will be prioritised, including an 80% increase in funding for the Higher Level Stewardship Scheme.

Flood and costal defence

Expected 15% efficiency savings in procurement for flood and coastal defences will be reinvested to safeguard people and properties, rather than farmland specifically.

The Chancellor also announced that the Animal Health Institute at Pirbright, would share a £220m tranche split three ways with other projects.

Broadband

Superfast broadband projects are to be piloted in Highlands & Islands, North Yorkshire, Cumbria and Herefordshire.

Farmers will fall foul of more general cost savings, including an increase in the state pension age from 65 to 66 in 2020.

DEFRA secretary Caroline Spelman said: “Our strategic aim is to deliver on the Prime Minister’s pledge that the Coalition will be the greenest government ever, whilst playing our part in tackling the economic deficit that we have inherited.

“This settlement reflects the need to make significant savings alongside meeting the priorities we have set and maintaining important frontline services in respect of flood defences, environmental protection and animal health monitoring.”

• For the CLA’s reaction to the spending review click here