Farming News - MPs warn Defra cuts may hamper flood protection

MPs warn Defra cuts may hamper flood protection


As floodwaters recede in the North-West, MPs on the Environment, Food and Rural Affairs (EFRA) Committee, which oversees Defra, have warned that further funding cuts to the department could affect its ability to lead on flood protection work.

On Wednesday, in the wake of flooding and extreme weather across large parts of northern England and Wales, the EFRA Committee warned that spending cuts announced last month must not affect the “vital flood protection work” the department oversees.

Since the austerity programme began under the Coalition government, Defra has shouldered the most severe cuts of any government department (proportional to its initial running costs). Delivering the Autumn spending review in November, Chancellor George Osborne announced that Defra will see its budget reduced by a further 15 percent over the coming four years. These deep budget cuts have already led to numerous warnings about the ability of the department to maintain its effectiveness, especially given the number of arms-length bodies under Defra's control.

In November 2014, just over a month before devastating floods in Somerset, that raised questions about government cuts to climate adaptation and flood defence spending, the National Audit Office (NAO) warned that funding for the Environment Agency was insufficient to meet flood defence and waterway maintenance requirements, and in March this year, under its former chair Anne McIntosh, the EFRA Committee warned that Defra had been hollowed out by cuts. The Committee said that the core department is now less effective at persuading other government departments or Brussels to follow its agenda.

On Wednesday, the committee, under its new chair Neil Parish, said Defra should produce a plan showing how it will deliver vital services in the face of further cuts. Tiverton MP Neil Parish commented, "Defra’s budget reduced by around a quarter in the previous Parliament and the department now faces a further 15% cut by 2020. Savings have to be made, but the Department must prioritise front-line work like flood protection.”

Elaborating on the Committee’s recommendations, he said, “We have asked the Secretary of State for a clear strategy outlining the impact of Spending Review cuts on vital services. We welcome Defra’s commitment to a six-year capital flood defence programme and its pledge to protect maintenance funding for activities such as river dredging. This is prudent investment since flood damage may cost more to repair than to prevent. But the increasing risk of more extreme flood events will stretch these budgets thinly."

Funding for flood defences lacking

EFRA MPs pointed out that Defra has raised just a fraction of private sector funds needed to meet its flood defence targets; under Defra's funding plan for flood protection, the Government aims to raise £600m, of which only £250m has so far been secured, and only £61 million from the private sector.

Meanwhile, on Wednesday the NFU praised Defra and its quango the Rural Payments Agency for their commitment in aiding recovery efforts for flood affected farmers in northern England. This came after Defra secretary Liz Truss representatives of the NFU and Lake District National Park in Cumbria in visiting some of the farms most affected by the flooding. NFU President Meurig Raymond said, “We are pleased that Defra has recognized the severity of the problems facing farmers and that they see the need for swift and pragmatic solutions to be put in place as soon as possible. We look forward to hearing more details on the Flood Recovery Fund, particularly for farmers who are facing difficulties in making urgent repairs but who don’t have the cash flow to implement this.”

In Wednesday’s review of Defra’s progress over the past year, the EFRA Committee also raised concerns about complex new Common Agricultural Policy (CAP) rules which could lead to Defra paying further EU fines (disallowance penalties).

Neil Parish MP said "The Rural Payments Agency and the Secretary of State have reassured us that the majority of CAP payments are to be made by the end of January and we welcome the payment in full of many farmers’ claims at the beginning of December. However, we are concerned about problems with IT systems which could delay future payments and lead to inaccurate claims which could cost Defra and farmers dearly if they break strict EU rules.

“Defra has already paid fines of £642 million under CAP schemes. Defra must press the EU for a simplified CAP system under which Defra can avoid further fines and put money where it is needed most - on delivering the best outcomes for farmers and the environment."