Departmental annual report 2012-13 : ninth report of session 2013-14, report, together with formal minutes relating to the report

The Committee has examined the Department for Environment, Food and Rural Affairs (Defra) annual report and accounts for 2012-13 (HC 40, session 2013-14, ISBN 9780102985672).

Defra is one of the smallest of Government Departments but it has faced among the most substantial budget cuts, which are set to continue up to 2016.

Defra relies on a large number of arms length bodies to deliver many significant areas of policy.

Ministers must clarify how further budgets cuts of over GBP300 million over the coming 2 years will impact on the funding provided to these agencies and the ability of the Department to respond to emergencies, exemplified by the flooding over Christmas and the New Year.

Among the most significant challenges facing the Department in the next 12 months is implementation of the new Common Agricultural Policy, and there are risks that the introduction of a new digital system for delivering payments to farms will cause problems for those farmers who do not have access to rural broadband.

The Committee found that the results of the Defra staff survey revealed an increased lack of confidence in the management and leadership of the Department, issues which must be addressed. Further challenges facing Defra in the coming year include policy relating to bovine TB and badger culling, its proposals on biodiversity offsetting, the introduction of plastic bag charging, and examining the role and potential of GM technology in food production.