Implementation of Common Agricultural Policy (Cap) reform in Scotland could cost nearly £10million more than planned, according to a government audit.
A report delivered to the Scottish Parliament by the auditor general for Scotland, Caroline Gardner, estimates that the Scottish Government’s five-year Futures Programme – designed to implement Cap reform – will cost £137.3million, up 7.4% or £9.5million from the budget drawn up in March this year.
The report found that £44.9million had been spent on the Futures Programme, which aims to redesign services and implement a new IT system for Cap delivery, to the end of July this year.
It said Cap implementation had proved “significantly more complex and challenging than anticipated”, and the Scottish Government had recognised this and taken actions to strengthen management of the programme and achievement of “critical internal deadlines”.
“However, it will not deliver the full scope and all of the benefits originally planned and will come at increased cost,” said Audit Scotland.
Farm minister Richard Lochhead said: “The EU promised a more simple Cap but this has not materialised. Instead, we are having to deal with extremely complex European reforms that were agreed very late in the day, as well as the decisions we have taken here in Scotland in partnership with our stakeholders.
“As Audit Scotland makes clear, the Scottish Government has taken action to ensure the project has remained on track, and thus avoid the risk of financial penalties which could cost up to £50million a year.”