The Environment Food and Rural Affairs Committee warns that the reduction in the Department for Environment, Food and Rural Affair's (Defra's) budgets over the next four years must not affect vital flood protection work.
The MPs want Defra to produce a plan showing how it will deliver vital services in the face of further cuts which will reduce administration budgets by over a quarter and overall resource budgets by 15%.
Committee Chair, Neil Parish MP said: "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.
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
Defra's funding plan relies on the Government being able to secure £600 million from external contributions – of which only £250 million has so far been secured, with only £61 million from the private sector.
Environment, Food and Rural Affairs Committee Chair, Neil Parish MP said: "We are pleased that the Government is committed to a £2.3 billion programme for flood defences over this Parliament. But this relies heavily on investment from the private sector, which has not yet been guaranteed."
Rural broadband
The Committee also recommends that Defra renews its focus on rural priorities such as the broadband infrastructure crucial to reducing the productivity gap between urban and rural areas.
Neil Parish MP said: "Businesses everywhere need fast broadband, but a lack of effective internet and mobile phone connectivity is hampering economic growth in some rural parts of the country.
Defra must champion the needs of rural communities and businesses more vigorously. Any new Universal Service Obligation must deliver affordable connections at sufficient speeds to all areas of the country."
CAP Payments
The Committee also raises concerns about complex new Common Agricultural Policy (CAP) rules which could lead to Defra paying further EU fines known as 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."
CLA response to EFRA report
CLA President Ross Murray said: “The Environment, Food and Rural Affairs Committee has highlighted a number of vital priorities for Defra, which we agree the Department’s budget must accommodate.
“As the past weeks have shown, improving flood protection remains crucial. The EFRA Committee has raised a concern that investment from the private sector has not been guaranteed. The CLA will continue to press for tax relief for spending on flood protection measures to be extended to private landowners, which will encourage more private investment. Landowners can be part of the mitigation against floods, and we are up for the challenge.
“The EFRA Committee has also highlighted the need for fast and affordable broadband to be delivered to all parts of the country. Government has now committed to a Universal Service Obligation of 10Mbps. This will be a real boost for the rural economy and we will continue to push for delivery until every home in the country is buzzing.
“We agree with the EFRA Committee that Defra should press at EU level for a simplified CAP scheme. However at the moment the focus must remain very clearly on paying BPS claimants, in full, within the payment window.”
The report can be read here.
