Source · Select Committees · Public Accounts Committee
Recommendation 2
2
Accepted
Publish robust forecasts for properties better protected and plans to ease small project approvals.
Conclusion
The Environment Agency is forecasting that it will provide protection for at least 40% fewer properties than planned. When the programme was launched in 2020, the government committed to provide better protection for 336,000 properties by 2027 by investing £5.2 billion in new flood defence projects. The programme got off to a slow start and the Agency has now reduced its forecast for the number of properties that will be better protected by the end of the programme to 200,000. While inflation has been a major factor, the bureaucracy associated with approving projects, particularly for the increased number of small projects, seems to be another significant factor, and this could affect the viability of schemes in smaller rural communities. Defra is yet to complete a formal reset of the programme, and the Committee is concerned that the number of properties protected could turn out to be even fewer than 200,000. The programme’s success relies on local authorities and other risk management authorities, and also on completion of many large projects where the Agency has only medium or low confidence of delivering by 2027. Recommendation 2: a) In the Treasury Minute response to this report, the Agency should include a robust forecast of the number of properties that will be better protected under the current capital programme by 2027, including how many properties in rural communities, taking into account all the risks that have been identified. It should also set out the best and worst case scenarios for these figures. 6 Resilience to fooding b) In the Treasury Minute response, Defra and the Agency should also set out what further changes are under consideration to make it easier to get smaller projects approved.
Government Response Summary
The government agrees and has implemented several measures to make smaller flood defence projects easier to approve, including a £100 million Frequently Flooded Allowance, simplified business case processes, and increased local approval delegations. It is also preparing further improvements and plans for the National Flood Risk Assessment (NaFRA2) by end of 2024.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. Recommendation implemented Policy choices and delivery improvements made in the £5.2 billion floods programme support smaller and more rural schemes. The Frequently Flooded Allowance ringfences £100 million in the programme to address some of the specific challenges faced by communities that have suffered repeated flooding, particularly those that are smaller and have struggled to secure necessary funding. The Agency has also developed multiple measures to improve the delivery of smaller projects. The Agency has simplified the business case process for projects under £3 million including clearer business case templates (launched in November 2023). It has also increased delegations to enable local assurance and approval of projects with appropriate controls and introduced simpler evidence requirements for small projects where the case for action is clear (since June 2023). The Agency is preparing further improvements to approvals processes to support smaller projects. For example, a new business case and appraisal approach for surface water projects is being considered which could allow multiple small projects in the same drainage area to be packaged together, reducing the average cost of producing a business case. The £25 million Natural Flood Management Programme is also streamlining business case and appraisal approaches for natural flood management which will make investment easier in future. The National Flood Risk Assessment (NaFRA2) will be available across England by the end of 2024 which will reduce the future costs and time incurred in the early stages of business case development by reducing the need for modelling studies. The government and Agency’s approach shows a continued commitment to deliver value for money for the taxpayer and to deliver schemes that reduce flood risk across the country.