Source · Select Committees · Environmental Audit Committee

Recommendation 17

17 Not Addressed

Embed climate and flood resilience as core test for all public spending by 2026.

Recommendation
By 2026, the Government should embed climate and flood resilience as a core test for all departmental spending and public investment proposals. This should be supported by clear resilience standards, measurable targets, and a requirement for every department to demonstrate how its spending aligns with these standards. (Recommendation, Paragraph 69)
Government Response Summary
The government's response focuses on the importance of property flood resilience, referencing the independent FloodReady review and efforts to grow the market for such approaches. It does not address the broader recommendation to embed climate and flood resilience as a core test for all departmental spending and public investment proposals by 2026.
Government Response Not Addressed
HM Government Not Addressed
The government recognises the important role that property flood resilience can play alongside other types of flood defences to ensure more homes and businesses are resilient to flooding. The independent FloodReady review consulted a wide range of stakeholders about mainstreaming such approaches. The Environment Agency commissioned an independent review of property flood resilience in January to identify gaps and opportunities for market growth. To support this work, a leadership group was established comprising senior representatives from sectors needing to act together to help grow the market. These included representatives from finance, insurance, construction, government, housing, training bodies and research. Through webinars, workshops, meetings and surveys additional input was gathered from flood volunteers, flood affected residents, information providers, local authorities, researchers, professional institutions, government offices, and MPs. The final report, published in October, sets out 22 recommendations and approximately 50 supporting actions across six themes – from trusted products and services to regulatory reform, to research and innovation. The report provides a clear roadmap for boosting resilience and helping people recover faster from floods so that property flood resilience becomes as routine to property owners as insulation, fire safety, and home security. The report has been widely welcomed, and its recommendations are the result of extensive consultation. The government recognises its role in making property flood resilience a routine part of flood resilience and is already taking recommendations from the FloodReady review forward. The FloodReady Leadership Group, chaired by UK Finance, will report regularly to the Flood Resilience Taskforce to keep that group informed of the progress being made by the relevant industry stakeholders. The property flood resilience grant scheme may be activated following exceptional and extreme flooding. When activated, it provides up to £5,000 per property to enable resilience measures to be put in place. Households and small and medium enterprises are eligible to apply for the grant in qualifying areas, including landlords. Defra continues to review its operation after each activation, incorporating feedback from local authorities who administer it and those who benefit. This feedback is used to update guidance and provide clearer directions. An independent evaluation of the scheme completed in 2022 found it improved uptake among eligible households and businesses, prompting changes to eligibility criteria, duration, survey fees, and guidance. The role of insurance in flood resilience Recommendation at paragraph 128: ‘The Government should begin work with the insurance and mortgage sectors to ensure the continued availability and affordability of flood insurance beyond 2039, when the current Flood Re scheme is due to end. This should include options for a successor scheme (“Flood Re 2.0”) that recognises resilience measures, supports low-income households, and enables a fair transition to a more risk-reflective market.’