DEFRA was among the worst hit departments as the government announced spending cuts which are likely to reshape the UK economy over the next five years.
In agreeing to eight per cent savings each year until 2015, DEFRA was in the top three most affected government departments, well above the 19 per cent average for savings over the period.
DEFRA hopes to save £174 million through more efficient IT and procurement practices, reducing the size and cost of DEFRA’s corporate estate and reductions in staff.
The NFU expressed concern that the cuts could hold the sector back. Senior parliamentary advisor Matt Ware told freshinfo: “DEFRA has been restructured a lot in recent years. It has less dead wood to go so the cuts will be deeper. Potentially there could be an over reliance on the private sector.”
Ware was pleased that R&D has been ring-fenced but said the uncertainty over the Agriculture and Horticulture Development Board which is currently under review, could affect the “efficiency and morale” of those working for the body and subsequent research.
A DEFRA spokesperson said the cuts represented a “reasonable settlement”. She said: “[The cuts] balance the need for DEFRA to play its part in tackling the economic deficit against our commitment to protect frontline services, preserve the effectiveness of the department’s key priority programmes and handle emergencies effectively.”
One source said DEFRA secretary Caroline Spelman may have “gone in too early with her views and negotiated on fewer cuts than other ministers”.
As part of his speech to parliament, Chancellor George Osborne focused on coastal erosion and investing in flood defences in briefly mentioning DEFRA and Spelman said the pledge to be the “greenest government ever” remained DEFRA’s strategic aim.
The outcome of the consultation into red tape in early 2011 was also seen as important with potential savings targeted for both the government and industry.
Bill Parker, director for horticulture at the HDC, told freshinfo: “It is not a surprise. There are some pretty hefty cuts overall. We were anticipating a further reduction in the R&D spend so we will have to wait for the detail. There other are where there might be cuts is in plant health.
"In general, it means we, with our funds, we need to co-ordinate better with Defra and others to make sure we are make the best use of limited resources. We are already doing that to a certain extent but we need to do that better. We certainly support the point about reducing red tape.”
Tim Lang, professor of food policy at London City University, added: “At a time when DEFRA needs to be planning and preparing for a huge increase in UK production, the worrying thing about the cuts is whether the attention of the state is more on tightening the belt than on food production of the future. It is important that politicians now turn their attention to a sustainable increase in UK food production.”
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