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

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Reports

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

Recommendations & Conclusions

14 items
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.
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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.
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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.
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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 …
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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.
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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.
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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 …
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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.
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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 …
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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 …
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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.
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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.
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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.
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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 …
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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…