Shropshire farmers should be “furious” about Defra officials bagging more than £7 million in bonuses over the past two years, politicians said today.

County Liberal Democrats have roundly condemned the huge bonuses despite a series of failures at Defra that prompted a £200 million budget cut.

Bridgnorth and Ludlow Lib Dem candidate Matthew Green said the farm payout system had been a shambles and it was a disgrace that staff were being given bonuses.

“Shropshire farmers must be furious and rightly so,” he said. “Annual performance bonuses in this financial year soared by 27 per cent compared with last year to reach nearly £4.3 million.

“Given the absolute shambles that Defra made of farm payments over the last two years this is an absolute disgrace. The idea behind bonuses is to reward good performance not bad.”

Defra has announced £200 million of budget cuts to cover £23 million in spiralling costs and an expected £130 million in European Commission fines, after the department bungled the introduction of the new farm subsidy system.

The budget cuts include £23.7 million from the Environment Agency and £129 million from Natural England.

A further £4 million will be cut from British Waterways, which faces a £60 million cash shortfall over the next five years.

The information about the cuts was released to Liberal Democrat shadow chancellor Vince Cable MP after he tabled a parliamentary question about the issue.

Councillor Heather Kidd, leader of South Shropshire District Council said: “These cuts are going to hit rural areas hard.

“Not only will the current range of support grants to rural communities come under threat but the new agency charged with the welfare of the countryside, Natural England, will lose £129m before it has hardly got going.

“Here we have yet another example of how little this urban-based Government cares about rural areas like ours.”

By Simon Alton