DEFRA were in financial crisis this month after being told to cut their budget by around £200 million over the next 6 months. The 7% savings are expected to primarily affect flood defence work, nature conservation and canal repair schemes, as well as various scientific bodies and research groups. The most damaging cuts will be to the Environment Agency, who will be required to cut £14.9 million on flood defences, £9 million on environmental protection and £300,000 from business waste recycling schemes. A further £12 million is being cut from Natural England, the flagship conservation organisation due to take over from the Countryside Agency in October.
This cost-cutting has been ordered directly to make up for losses incurred in a disastrous revamp of the farm subsidy system last year, which backfired when it led to a 50% increase in the number of claimants and the IT system failed to cope.