Farming subsidy IT system to cost £90m

The Department for Environment is to spend at least £90m on a major overhaul of IT systems in the Rural Payments Agency (RPA).

The RPA, which is responsible for the Common Agricultural Policy payment functions, is planning to improve its subsidy payout process. The work on the Single Payment Scheme (SPS) means that 1,650 jobs will be axed, as the government is leaning on departments to cut costs and prove efficiency.

According to agricultural advisor ADAS, CAP reform and the introduction of the Single Payment Scheme (SPS) will mean that subsidy payments will be dependent on meeting compliance regulations, including maintaining land and soil.

In a statement to parliament, Jim Knight, parliamentary under-secretary at the Department for Environment, Food and Rural Affairs, said: "The development of a new computer system to deliver SPS is an integral part of a broader Change Programme. This Programme is targeted to make greater use of technology and innovation to deliver all RPA services more efficiently and effectively.

"As well as implementing the Single Payment Scheme (SPS), this Programme will bring about a significant reduction of the size of the organisation by reducing the number of operational sites from 12 to six (four have already closed) and a reduction in staffing of approximately 1,650 (from a baseline of 3,299) as part of the Gershon efficiencies."

The RPA has budgeted £70.9m for developing SPS software, £20m for infrastructure improvements, and unspecified amount for "further indirect costs".