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

Clear

Reports

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

Recommendations & Conclusions

7 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.
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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.
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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.
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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.
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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.
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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.
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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.
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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…