Select Committee · Public Accounts Committee

Managing flood risks

Status: Closed Opened: 17 Dec 2020 Closed: 17 May 2021 7 recommendations 23 conclusions 1 report

Flooding and coastal erosion put lives, livelihoods and people’s well-being at risk. The Environment Agency estimates that 5.2 million homes and businesses in England are at risk of flooding and that around 700 properties are vulnerable to coastal erosion over the next 20 years. In addition, more than two thirds of properties in England are … Show more

Reports

1 report
Title HC No. Published Items Response
Forty-Fifth Report - Managing flood risk HC 931 26 Feb 2021 30 Responded

Recommendations & Conclusions

30 items
2 Recommendation Forty-Fifth Report - Managing flood risk Deferred

Scarce local authority resources and low levels of private sector investment are barriers to the...

Scarce local authority resources and low levels of private sector investment are barriers to the effective management of flood risks, especially given the impact of Covid-19. Lead local flood authorities (unitary authorities or county councils) are responsible for managing local flood risks. Their funding for this is not ring- fenced … Read more

Government response AI summary
The government agreed with the recommendation to identify areas of shortfall in flood risk funding but deferred the implementation, stating it will consider a review of local government funding as part of the Spending Review 2021, missing the July 2021 reporting deadline.
Read full response →
HM Treasury
3 Recommendation Forty-Fifth Report - Managing flood risk Accepted

In 2014 the NAO report on strategic flood management found there was a profusion of...

In 2014 the NAO report on strategic flood management found there was a profusion of plans that often duplicate across geographical or administrative areas. Defra and the Agency have not followed the NAO recommendation to review their strategies and plans with a view to rationalise them to reduce the burden … Read more

Government response AI summary
The government accepts the recommendation and provides an update, committing to transform local flood risk planning by 2026, consult on reforms in due course, and is working to consult on updated draft Flood Risk Management Plans in Autumn 2021.
Read full response →
HM Treasury
4 Recommendation Forty-Fifth Report - Managing flood risk Deferred

Short-term funding cycles are impacting on the Agency’s ability to manage flood risks effectively.

Short-term funding cycles are impacting on the Agency’s ability to manage flood risks effectively. The Agency has a six-year capital funding settlement for investment in flood defences (2021–22 to 2026–27), but only a one-year settlement for revenue funding (2021–22). Revenue funding pays for people and running costs including the on-going … Read more

Government response AI summary
The government agrees with the recommendation to reduce the adverse impacts of short-term funding cycles, highlighting its six-year capital investment programme and stating that future maintenance budgets, including for longer-term security, will be reviewed as part of Spending Review 2021.
Read full response →
HM Treasury
5 Recommendation Forty-Fifth Report - Managing flood risk Accepted

The current indicators used to monitor national flood risk do not cover important elements such...

The current indicators used to monitor national flood risk do not cover important elements such as risks to agricultural land, business premises, and infrastructure. The Agency uses the number of homes ‘better protected’ as the main performance indicator for its capital investment programme. It also uses its National Flood Risk … Read more

Government response AI summary
The government accepts the recommendation, confirming it is developing a new national set of flood risk indicators by Spring 2022 that will incorporate all types of flood risk (residential, non-residential, agricultural, infrastructure) and allow for comparison over time.
Read full response →
HM Treasury
6 Recommendation Forty-Fifth Report - Managing flood risk Accepted

The Department has not ensured that all regions, deprived areas in particular, get a fair...

The Department has not ensured that all regions, deprived areas in particular, get a fair share of the available funding. The Agency uses the level of risk in an area and the readiness of projects to go ahead to decide where to invest in flood defences. The Agency’s own research … Read more

Government response AI summary
The government accepts the recommendation, committing to undertake and publish annual analysis of investment levels across regions and deprived areas through KPIs, with reporting beginning by Spring 2022, and will take appropriate action to reduce funding inequality.
Read full response →
HM Treasury
7 Recommendation Forty-Fifth Report - Managing flood risk Accepted

We are not convinced that the Department has yet done enough to address the difficulties...

We are not convinced that the Department has yet done enough to address the difficulties those recently flooded have in getting affordable insurance. Some people who have recently been flooded still face difficulties in obtaining affordable insurance. The Department states that the existence of Flood Re should ensure that affordable … Read more

Government response AI summary
The government accepted the recommendation, stating it wrote to the Committee by the deadline and committed to ongoing research into flood insurance, publishing responses to consultations on the Flood Re scheme and Property Flood Resilience (PFR) in due course, and continuing significant investment in PFR …
Read full response →
HM Treasury
8 Recommendation Forty-Fifth Report - Managing flood risk Rejected

Despite the known risks, there are still plans to build houses on flood plains.

Despite the known risks, there are still plans to build houses on flood plains. While government policy is not to build on flood plains unless unavoidable, the Agency’s analysis indicates that there could be a large increase – of up to 50 per cent - in the number of houses … Read more

Government response AI summary
The government explicitly rejected the recommendation, stating that existing planning policy (NPPF) already provides a strong steer to avoid building in high-risk flood areas and that the vast majority of planning decisions comply with Environment Agency advice.
Read full response →
HM Treasury
1 Conclusion Forty-Fifth Report - Managing flood risk Acknowledged

On the basis of a Report by the Comptroller and Auditor General, we took evidence...

On the basis of a Report by the Comptroller and Auditor General, we took evidence from the Department for Environment, Food and Rural Affairs (the Department) and the Environment Agency (the Agency) on managing flood risks.1

Government response AI summary
The government provided an introduction to its response, acknowledging the committee's report and outlining the context of flood risk management, the roles of relevant bodies, and investment in flood defences.
Read full response →
HM Treasury
9 Conclusion Forty-Fifth Report - Managing flood risk Deferred

Lead local flood authorities (unitary authorities or county councils) manage the risk of surface and...

Lead local flood authorities (unitary authorities or county councils) manage the risk of surface and ground water flooding, and flooding from ordinary water courses which are not main rivers. The funding local authorities receive for flood risk management is not ring-fenced. The National Audit Office reported concerns about the uncertainty … Read more

Government response AI summary
The government agreed with the committee’s observation and committed to review local government funding for statutory flood and coastal erosion risk management functions as part of the Spending Review 2021.
Read full response →
HM Treasury
10 Conclusion Forty-Fifth Report - Managing flood risk Accepted

The amount of funding local authorities receive for flood risk management is determined by the...

The amount of funding local authorities receive for flood risk management is determined by the Ministry of Housing, Communities and Local Government’s (MHCLG) local government funding formula. The Department told us that, taken as a whole, local authorities are spending more on flood risk management than they are allocated through … Read more

Government response AI summary
The government agreed with the committee's conclusion, confirming its commitment to review local government funding for statutory flood and coastal erosion risk management functions as part of the Spending Review 2021, aligning with the existing commitment noted by the committee.
Read full response →
HM Treasury
11 Conclusion Forty-Fifth Report - Managing flood risk Deferred

The Government introduced partnership funding in 2011, requiring many flood schemes to be part-funded from...

The Government introduced partnership funding in 2011, requiring many flood schemes to be part-funded from sources other than government grant-in-aid. The cost of individual schemes is shared between national and local sources of funding, to allow more schemes to go ahead. The Agency told us that partnership funding had been … Read more

Government response AI summary
The government agrees with the committee's observation about the success of partnership funding and notes existing policy actions to strengthen incentives. It has committed to review local government funding for flood risk management as part of the Spending Review 2021.
Read full response →
HM Treasury
12 Conclusion Forty-Fifth Report - Managing flood risk

The EA Strategy highlights the role of Community Interest Companies (CIC) including the East Wash...

The EA Strategy highlights the role of Community Interest Companies (CIC) including the East Wash CIC in partnership funding. Following questioning in the hearing, Defra confirmed that parish councils precept income can be used to fund flood and coastal erosion risk management activities.12 Read more

HM Treasury
13 Conclusion Forty-Fifth Report - Managing flood risk Deferred

Nearly all this partnership funding has been obtained from public sector sources, with only £39...

Nearly all this partnership funding has been obtained from public sector sources, with only £39 million (7% of the total) being secured from the private sector. This is significantly lower than the 25% of partnership funding secured from the private sector between April 2011 and March 2015.13 The Department wants … Read more

Government response AI summary
The government agrees with the committee's observation regarding low private sector contributions and states that existing policy will further strengthen incentives. It has committed to review local government funding for flood risk management as part of the Spending Review 2021.
Read full response →
HM Treasury
14 Conclusion Forty-Fifth Report - Managing flood risk Deferred

The government has a record of providing the Agency with long-term capital funding settlements, with...

The government has a record of providing the Agency with long-term capital funding settlements, with two six-year settlements covering 2015–16 to 2020–21 and 2021–22 to 2026–27. However, the Agency only has a revenue funding settlement covering the next financial year (2021–22). Revenue funding covers people and running costs including the … Read more

Government response AI summary
The government agrees with the observation, recognizing the benefits of multi-year budgets and highlighting its multi-year capital investment programme. However, it states that future revenue budgets will continue to be reviewed as part of Spending Review 2021.
Read full response →
HM Treasury
15 Conclusion Forty-Fifth Report - Managing flood risk Deferred

The Agency told us that multi-year revenue funding settlements are preferable and help it to...

The Agency told us that multi-year revenue funding settlements are preferable and help it to plan in areas such as staffing. The Agency has skills shortages in some specialist areas like engineering that are critical for flood defence. It explained that this is largely due to the disparity between the … Read more

Government response AI summary
The government agrees with the observation that multi-year revenue funding is preferable, acknowledges the benefits of multi-year budgets, and will continue to review future budgets as part of Spending Review 2021.
Read full response →
HM Treasury
16 Conclusion Forty-Fifth Report - Managing flood risk Accepted

The Agency explained that on-going maintenance costs are increasing for three main reasons.

The Agency explained that on-going maintenance costs are increasing for three main reasons. First, as a result of more extreme weather due to climate change, both more extreme flooding and more extreme droughts. Second, some flood defences in England are quite old, having been built in the 1960s and 1970s. … Read more

Government response AI summary
The government agrees with the committee's observation and details its existing multi-year flood and coastal defence investment programmes, including a record £5.2 billion for the next six years, and past increases in maintenance funding. It also mentions reviewing future budgets as part of SR21.
Read full response →
HM Treasury
17 Conclusion Forty-Fifth Report - Managing flood risk Not Addressed

The Agency is already seeing the impacts of climate change through the increasing strain on...

The Agency is already seeing the impacts of climate change through the increasing strain on existing flood defences. In March 2020, the government gave the Agency £120 million to repair the defences damaged in the 2019–20 winter floods. At that time, the 12 https://committees.parliament.uk/publications/4520/documents/45720/default/ 13 C&AG’s Report, para 2.19 14 … Read more

Government response AI summary
The government's response, which discusses multi-year capital funding and future budget reviews, does not address the committee's specific observations regarding the progress of repairs to flood defences damaged in the 2019-20 winter floods.
Read full response →
HM Treasury
18 Conclusion Forty-Fifth Report - Managing flood risk Accepted

The Agency is on track to better protect 300,000 homes as a result of its...

The Agency is on track to better protect 300,000 homes as a result of its capital investment programme for 2015–16 to 2020–21. While this a clear and easily understood measure, it does not provide any indication of what has happened to flood risk for non- residential buildings, agricultural land and … Read more

Government response AI summary
The government states it agrees with the committee's observation and is developing an improved framework for understanding overall flood risk, including new methods for calculating risk reduction. By Spring 2022, the department will have in place a full suite of metrics (KPIs) and a new …
Read full response →
HM Treasury
19 Conclusion Forty-Fifth Report - Managing flood risk Accepted

The Agency also uses its National Flood Risk Assessment (NaFRA) model to estimate the number...

The Agency also uses its National Flood Risk Assessment (NaFRA) model to estimate the number of properties at risk of flooding each year. Due to changes in methodology over the 2015–16 to 2020–21 period, a direct comparison between years is not reliable. The Agency is due to update NaFRA in … Read more

Government response AI summary
The government agrees with the observation and states that the department and Agency are developing a framework for understanding overall flood risk, including improved methods, new KPIs by Spring 2022, and considering interim improvements to the current NaFRA before its 2024 update.
Read full response →
HM Treasury
20 Conclusion Forty-Fifth Report - Managing flood risk Accepted

When we asked the Agency how it assesses overall national flood risk for non- residential...

When we asked the Agency how it assesses overall national flood risk for non- residential buildings, agricultural land and infrastructure it said that it does not measure this unless it is part of a particular flood scheme. So, for example for agricultural land, the Agency does not know what has … Read more

Government response AI summary
The government agrees with the observation and is developing a framework for understanding overall flood risk, which includes improved methods like Expected Annual Damages (EAD) and a new suite of KPIs by Spring 2022, aiming to provide a more comprehensive national assessment for all asset …
Read full response →
HM Treasury
21 Conclusion Forty-Fifth Report - Managing flood risk Accepted

The Agency recognised that the way flood risks are often described, using percentages and probabilities...

The Agency recognised that the way flood risks are often described, using percentages and probabilities of being flooded, are not very meaningful for the public. It described 18 Q 27: C&AG’s Report, para 16 19 Letter dated 27 January from Environment Agency to Committee 20 Q 30; C&AG’s Report, para … Read more

Government response AI summary
The government agrees with the observation and commits to developing an improved framework for understanding overall flood risk, including new measurement methods and KPIs. By Spring 2022, the department will have in place new metrics and an oversight process to monitor flood risk and inform …
Read full response →
HM Treasury
22 Conclusion Forty-Fifth Report - Managing flood risk Accepted

The Department has committed to developing a new national set of indicators on flood risk...

The Department has committed to developing a new national set of indicators on flood risk by spring 2022. It confirmed that these new indicators will be measurable and will enable the tracking of national flood risk over time.25 24 Q 54 25 Qq 49, 55–56 14 Managing food risk 2 … Read more

Government response AI summary
The government agrees with the committee's observation and reaffirms its commitment to developing a national set of indicators on flood risk by Spring 2022, outlining the framework and metrics currently being developed.
Read full response →
HM Treasury
23 Conclusion Forty-Fifth Report - Managing flood risk Accepted

The Department for Environment, Food and Rural Affairs (the Department) told us that the responsibility...

The Department for Environment, Food and Rural Affairs (the Department) told us that the responsibility for deciding which flood defence schemes to invest in is delegated to the Environment Agency (the Agency). The Agency explained that it decides which schemes will form part of its six-year capital investment programme based … Read more

Government response AI summary
The government agrees with the committee's observation on delegated responsibility for scheme selection. It commits to monitoring the performance of the investment programme, including regional and deprived area investment, through KPIs and a new governance board, with strengthened reporting of progress by Spring 2022.
Read full response →
HM Treasury
24 Conclusion Forty-Fifth Report - Managing flood risk Accepted

The Agency published a report in 2020 which showed that people from more deprived areas...

The Agency published a report in 2020 which showed that people from more deprived areas faced greater flood risk than those living in less deprived areas, although the gap had narrowed in the last 15 years. The report also showed that the proportion of all homes ‘better protected’ as a … Read more

Government response AI summary
The government agrees with the implied need for better understanding and monitoring, committing to monitor the flood defence investment programme and report on investment in deprived areas via KPIs, with strengthened reporting in place by Spring 2022.
Read full response →
HM Treasury
25 Conclusion Forty-Fifth Report - Managing flood risk Accepted

We also asked the Agency about the reasons for the wide variation in the level...

We also asked the Agency about the reasons for the wide variation in the level of flood defence investment per property at risk between regions. The Agency explained that the level of flood risk will determine where investment is made. It also said that the timing and size of flood … Read more

Government response AI summary
The government agrees with the observation and commits to new actions, including monitoring regional investment patterns through KPIs, establishing a new governance board to review reports, and strengthening overall reporting by Spring 2022. It is also exploring ways to support local economies through a Call …
Read full response →
HM Treasury
26 Conclusion Forty-Fifth Report - Managing flood risk Acknowledged

We asked the Department why some people faced difficulties in obtaining affordable insurance after being...

We asked the Department why some people faced difficulties in obtaining affordable insurance after being flooded, particularly those in social housing. The Department said that Flood Re, a joint initiative between the insurance industry and the UK Government, was established to ensure affordable flood risk insurance is available, regardless of … Read more

Government response AI summary
The government acknowledges the committee's conclusion by detailing ongoing work to address flood insurance affordability, including commencing new research (Spring 2021-Autumn 2022) and publishing consultations on improving the Flood Re scheme and Property Flood Resilience uptake.
Read full response →
HM Treasury
27 Conclusion Forty-Fifth Report - Managing flood risk Acknowledged

The Department’s research, following the floods in Doncaster in November 2019, suggests that some people...

The Department’s research, following the floods in Doncaster in November 2019, suggests that some people were still unable to obtain affordable insurance despite the existence of Flood Re. The research report made a number of recommendations which the Department is considering.31 Read more

Government response AI summary
The government acknowledges the committee's conclusion by detailing ongoing and future work to address flood insurance affordability, including considering proposals from the Doncaster flood review, initiating new research into insurance availability, and launching consultations on improving the Flood Re scheme.
Read full response →
HM Treasury
28 Conclusion Forty-Fifth Report - Managing flood risk Accepted in Part

Written evidence from the Association of British Insurers (ABI) and Flood Re emphasised the importance...

Written evidence from the Association of British Insurers (ABI) and Flood Re emphasised the importance of property-level flood resilience measures such as flood barriers and doors. Such measures can reduce the cost of repairs and the recovery time of affected properties. Both the ABI and Flood Re welcomed the government’s … Read more

Government response AI summary
The government states it agrees and is acting on property-level flood resilience by commencing research into flood insurance affordability, publishing a consultation and call for evidence on the Flood Re scheme and Property Flood Resilience, and allocating a new £200 million place-based resilience programme, alongside …
Read full response →
HM Treasury
29 Conclusion Forty-Fifth Report - Managing flood risk Rejected

The Agency told us that the government’s current strategy was not to build houses on...

The Agency told us that the government’s current strategy was not to build houses on flood plains unless there was no alternative and that any developments on flood plains should not increase the risk of flooding. The Agency is a statutory consultee on planning applications that may increase flood risk. … Read more

Government response AI summary
The government rejects the Committee's (implicit) recommendation regarding building on floodplains, stating that while avoidance is key, development may be necessary in some areas under strict National Planning Policy Framework tests, and ongoing planning reforms will further support flood risk avoidance.
Read full response →
HM Treasury
30 Conclusion Forty-Fifth Report - Managing flood risk Rejected

Written evidence from Flood Re highlighted that the Agency does not have responsibility for surface...

Written evidence from Flood Re highlighted that the Agency does not have responsibility for surface water flooding and it has concerns about the impacts of developments in dense urban areas where surface water flood risks are high. It also has concerns that there is an inconsistent approach to climate change … Read more

Government response AI summary
The government rejects the implied recommendation, arguing that current planning policy (NPPF) already provides a strong steer to avoid development in high-risk flood areas and that the reformed planning system will further support flood risk avoidance.
Read full response →
HM Treasury

Oral evidence sessions

1 session
Date Witnesses
14 Jan 2021 Catherine Wright · Environment Agency, Sally Randall · Department for Environment, Food and Rural Affairs, Sir James Bevan · Environment Agency, Tamara Finkelstein · Department for Environment, Food and Rural Affairs View ↗

Who gave evidence

4 witnesses
WitnessOrganisationSessions
Catherine Wright · Executive Director, Flood and Coastal Risk Manage… Environment Agency 1
Sally Randall · Director General - Environment Group Department for Environment, Food and Rural Affairs 1
Sir James Bevan · Chief Executive Environment Agency 1
Tamara Finkelstein · Permanent Secretary Department for Environment, Food and Rural Affairs 1

Correspondence

4 letters
DateDirectionTitle
6 Jul 2021 Correspondence from Tamara Finkelstein, Permanent Secretary, Department for Env…
16 Apr 2021 Correspondence from Tamara Finkelstein, Permanent Secretary, Department for Env…
1 Feb 2021 Correspondence from Sir James Bevan, Chief Executive, Environment Agency, re re…
1 Feb 2021 Correspondence from Tamara Finkelstein, Permanent Secretary, DEFRA, re regardin…