Source · Select Committees · Public Accounts Committee
Recommendation 10
10
The amount of funding local authorities receive for flood risk management is determined by the...
Conclusion
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 the funding formula. However, it recognised that there is wide variation in funding across individual local authorities and accepted that it needs a much better understanding of what individual local authorities are spending. The Department has committed to work with MHCLG to improve its understanding of the allocation of funding and spending within local authorities on flood risk management. This will include a review of the funding formula to determine whether it is targeting the right areas in the right ways to reflect local flood risk.10
Government Response
Acknowledged
HM Government
Acknowledged
2.1 The government agrees with the Committee’s recommendation. Target Implementation date: alongside Spending Review 2021 2.2 The Agency tracks partnership funding for the capital programme monthly to identify what contributions need to be secured. The Agency also monitors those schemes that most reduce flood risk but are at highest risk of not delivering to focus on viable schemes where shortfalls in funding are preventing their progression. The government’s policy statement of June 2020 on flood and coastal erosion risk management (FCERM) sets out a number of actions that will further strengthen incentives for generating partnership funding. 2.3 Funding for flood risk management is part of the overall Local Government Settlement. Depending on local decisions, the settlement for 2021-22 will see councils’ core spending power in England rise from £49 billion in 2020-21 to up to £51.3 billion in 2021-22, a 4.6% increase in cash terms. The majority of local government funding is un-ringfenced, recognising that local authorities are best placed to decide how to meet the major service pressures in their local areas. 2.4 The government has committed to review local government funding for statutory flood and coastal erosion risk management functions, and as part of Spending Review 2021 (SR21) is considering the priorities for local government finance reform, including how funding is allocated to councils.