Hard-hit Defra to have budget slashed further despite warnings

Rachel Reeves has been advised against reducing the government's environmental funding in the upcoming budget, as a recent analysis reveals that the department faced funding cuts at double the rate of other departments during the years of austerity.

From 2009/10 to 2018/19, the budget for the environment department decreased by 35% in actual dollars and 45% when adjusted for inflation. This information comes from an analysis by the Guardian, which examined annual reports from the Department for the Environment, Food and Rural Affairs (Defra), the Environment Agency, and Natural England. In contrast, the average reduction across all government departments during the Conservative austerity measures was roughly 20%. Notably, in the first five years of austerity, the environment department experienced the largest budget cuts of all departments.

Between 2018/19 and 2021/22, the department's budget increased, primarily due to the addition of new responsibilities following Brexit. This included managing the £2.4 billion annual farming budget that had previously been handled by the EU, as well as bringing in new personnel to review EU legislation to determine which environmental regulations should be adopted in the UK. However, analysts contend that this new funding didn’t compensate for the significant reductions that occurred during austerity, as it was specifically allocated for new roles that Defra had not undertaken before.

Reeves plans to implement £40 billion in tax increases and reductions in spending within the budget. A significant portion of this is anticipated to come from various government departments. According to The Guardian, the Department for Environment, Food and Rural Affairs (Defra) is expected to face particularly steep budget reductions.

Steve Reed, the environment secretary, reportedly did not join the group of cabinet members who sent a letter to the chancellor expressing strong opposition to budget reductions. According to Treasury sources quoted by the Guardian, Reed was actually inclined to propose cuts to certain areas of the Department for Environment, Food and Rural Affairs (Defra) budget. He is believed to have reached out to Reeves, stating that he was willing to contribute to addressing the "terrible legacy left by the Conservative government," but he made it clear that he would not support decisions he deemed unsustainable.

A representative from Reed informed the Guardian: “The Conservative Party has left the UK with the most challenging economic situation since World War II due to their unwillingness to make hard choices and their reckless spending. The chancellor has stated that difficult choices regarding departmental budgets must be made to fix the significant damage caused by the Conservatives and to tackle the £22 billion deficit in the public finances. The specifics on how to manage this will be determined during the upcoming budget discussions.”

At Defra, officials recognize that these budget reductions mainly impact environmental and flood protection efforts. There are proposals to slash approximately £100 million annually from the funding dedicated to nature-friendly farming in England. While part of the EU, British farmers received financial support based on the amount of land they managed. Under the new post-Brexit arrangement, the UK government is responsible for funding, offering payments to farmers who work to preserve the environment. Since 60% of England's land is used for farming, this initiative is expected to play a crucial role in addressing species decline and restoring natural habitats.

Reed has also declined to guarantee the flooding payments that the Conservatives had pledged, and sources within Defra have suggested that these funds may be reduced. Currently, it's reported that the Defra budget is expected to be cut by at least 20%.

Elliot Chapman-Jones, who leads public affairs at The Wildlife Trusts, stated that the reduction in funding from Defra during times of austerity has severely impacted its capacity to safeguard the environment and combat river pollution. He emphasized that nature is in serious decline, and without significant increases in funding—especially for farming practices that support the environment—the government will not be able to reach its goal of stopping the decline of nature by the end of this decade.

Following Brexit, the UK established mandatory environmental goals to replace the nature laws from the EU. The government has committed to stopping the decline of species by 2030 and aiming to increase their populations by at least 10% above current levels by 2042. However, recent research from the RSPB indicates that the existing farming budget falls short by at least 17% of what is necessary to achieve these legally binding environmental targets in England, resulting in an annual shortfall of £448 million. This shortfall could mean that nearly 700,000 fewer hectares of land would be managed under eco-friendly farming methods, which is three times the area of the Lake District national park.

Kevin Austin, the director of policy at the RSPB, stated, "Cutting the agriculture budget would have significant negative effects. It would hinder our advancements towards important nature and climate goals and weaken the initiatives of farmers who are committed to transitioning towards a more sustainable and nature-focused future."

Defra has consistently struggled with budgeting compared to other government departments, and its ministers have often failed to advocate for adequate funding. For instance, Caroline Spelman, who served as secretary of state from 2010 to 2012, had to abandon her proposal to privatize the country's forests due to a public outcry. During her tenure, she oversaw a significant 30% reduction in Defra's budget, which severely impacted flood protection measures. Additionally, the period of austerity led to thousands of job cuts, particularly affecting the Environment Agency and the Forestry Commission, which are tasked with safeguarding the environment.

Liz Truss, who served as the environment secretary from 2014 to 2016, proudly stated during a parliamentary discussion that she had reduced the number of inspections on farms. This change allowed farmers to more easily dispose of waste, such as pesticides and animal waste, into waterways.

During the years 2018-19, inspectors only managed to visit 403 out of the 106,000 registered farms in England to look for potentially harmful activities that might lead to water pollution. A campaign organization called WildFish estimated that, at that inspection rate, it would take farms around 263 years to receive a visit. Additionally, Truss reduced funding for environmental protection by £24 million, which included monitoring water companies to prevent the discharge of untreated sewage, between the periods of 2014-15 and 2016-17, as reported by the National Audit Office.

The Environment Agency has been experiencing ongoing challenges, enduring a significant budget reduction of 50% over the last ten years. Data from freedom of information inquiries reveal that in 2018, staff responded to 5,013 pollution incidents; by 2023, this figure had decreased by 36%. Nearly half of England’s nature reserves have not been assessed by government ecologists in recent years, and just 39% of sites recognized for their scientific importance are considered to be in "good condition."