19.07.2010

The spending cuts have been revealed today by Defra as part of the government’s Structural Reform Plan (SRP).

The Department for Environment, Food and Rural Affairs (Defra) has today defined its priorities for the next five years, despite growing fears that swinging spending cuts could cripple the department. Defra has been ordered to present three spending scenarios to the Treasury detailing cuts of 25%, 40% and 50% in the department's budget.

The spending plans are expected to be delivered to the Treasury today and will be used to inform the government's autumn spending review. Defra was already assessing how to deliver spending cuts over the next four years of 25% and 40%, but considered spending cuts of 50% as a worst-case scenario.

The revelations about the spending cuts come as Defra today officially define its priorities for the next four years as part of the government's Structural Reform Plan (SRP), aiming to establish clear goals and measurable targets for each Whitehall department.

Defra’s budget for the full parliament will be announced on 20 October

Defra has admitted that they are working over the summer on where they can apply the spending cuts, and the department's budget for the full parliament will be announced on 20 October. The department is preparing a review of the arm's-length bodies it supports, which could see the control of a wide range of agencies transferred to voluntary and community groups. In particular, it is looking at the possible mutualisation of British Waterways.

In addition to it, it is believed that funding for the Sustainable Development Commission in England will be cut, although the body is likely to continue to operate in Wales and Scotland. A spokeswoman for the Sustainable Development Commission refused to confirm whether or not the body was facing spending cuts as well, although she added that talks were ongoing between the commission and Defra about its future and an announcement was likely next week.

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Article source – BusinessGreen.com