Impact of rural cuts are revealed

The single farm payment subsidy system led to an overspend

The government's environment department has revealed details of cuts it has to make following a £200m overspend.

There will be a £12.9m cut for Natural England, a £403,000 reduction for Food From Britain and a £23.7m cut for the Environment Agency.

The cuts are at least partly being made to make up for losses from the failures in the new subsidy system for farmers.

But the government said Defra's budget overspend was mainly due to accounting rule changes, not subsidy errors.

The overspend has been blamed partly on bird flu precautions and the farm single payments fiasco.

Others set to lose out in the 2006-7 budget include the National Forestry Company, which has a £300,000 reduction, the Marine Fisheries Agency with a £1.7m drop and the Meat and Livestock Commission with a £15,000 cut.

Meanwhile, British Waterways suffered a £3.9m reduction and the State Veterinary Service, which is responsible for monitoring animal diseases, a £3m cut.

According to the British Veterinary Association, the service is already stretched and the cuts could compromise the country's defence against diseases such as bird flu and foot and mouth.

The budget reductions were ordered by the Treasury.