NFU worried vital work may be left short of cash

Feb 22 2008 by Sam Wood, The Journal

NATIONAL Farmers’ Union members last night welcomed a modest overall increase in the Defra budget, but said they were concerned some areas could be left short of cash.

The Defra budget settlement, announced yesterday, of £3.94bn for 2008/09 represents an increase of 1.4% on its existing budget, after allowing for inflation.

But the NFU expressed concern that after taking into account new spending commitments on flood defence and climate change, other vital areas of the department’s work, such as animal health, could be left short of funds.

NFU Director General Richard Macdonald said: “This is a difficult settlement, when you bear in mind that climate change is supposed to be at the top of the Government’s list of priorities, and that most of the work related to it falls under Defra’s remit.

“However, the £10m being made available to develop pilot projects on the generation of renewable energy through anaerobic digestion is welcome, as is continued spend in related R and D.

“We are glad as well that funding for the England Rural Development Plan is being increased and funding for the Rural Payments Agency is being maintained.

“However, spending on these two areas is largely dictated by EU policy. Those budget headings over which the Government has a large measure of discretion, such as animal health and WRAP (the Waste and Resources Programme), face significant cuts, in order to allow for increases elsewhere.

“Overall, it would say more for the Government’s commitment to fighting climate change if new money was being found to cover the costs involved, rather than having to be cobbled together from cuts imposed on other important areas of work.”

Environment Secretary Hilary Benn yesterday said: “Defra spending will increase to almost £4bn over the next three years but we must invest wisely. That is why we are focusing our efforts on helping to provide sustainable options for the future as well as supporting and influencing governments, businesses and consumers locally and globally.”

Climate change remains a priority, with Defra highlighting an increase in funding for the domestic Environmental Transformation Fund (to £400m in a bid to build a “low carbon Britain”. As part of the fund, the Carbon Trust will receive £47.4m to encourage new technologies including offshore wind, photovoltaic solar power and biomass heating, as well as increasing the energy-saving loans schemes for small and medium sized enterprises by a further £12m to £62m since 2003.