Source · Select Committees · Public Accounts Committee
Recommendation 5
5
Acknowledged
Set out improved understanding of investment decisions impacting geographical distribution and smaller communities.
Recommendation
Defra does not have sufficient understanding of the impact of its capital investment decisions on geographical distribution and we are concerned that smaller communities are losing out. In response to a prior Committee recommendation, Defra undertook by July 2021 to identify areas which are likely to lack enough local authority resources and private sector contributions to manage flood risk, but Defra still has not done so. Defra is insistent that the level of investment in an area is determined by the level of flood risk, but we are concerned that some parts of the country and some location types may be losing out on funding for other reasons, for example because they are less able to secure partnership funding. Defra published guidance for government on rural proofing in 2017 (updated in 2022) to help departments to ensure that rural areas receive fair and equitable policy outcomes. The guidance states that policy makers should be considering the effect of their policy on rural areas and how it might need to be implemented differently. However, the Committee understands that the current method for prioritising projects favours the more population dense urban locations, and that there is a lack of provision for smaller communities of fewer than 100 houses that can nevertheless be devastated by the impact of flooding. Defra highlighted how it believes its £100 million Frequently Flooded Allowance would mitigate some of this, but we consider this a drop in the ocean. Recommendation 5: a) Defra should set out how it intends to get a better understanding of the impact of its investment decisions on geographical distribution and on its progress in reviewing local government funding for flooding. b) Defra should also set out how it is ensuring that it is following its own guidance on rural proofing and that its investment decisions are not disadvantaging smaller communities. c) Defra must complete and publish its significantly overdue work to identify areas which are lik
Government Response Summary
The government agreed but largely outlined existing funding mechanisms and previous actions. It committed to publishing a review of local authority spend shortly, but for other points, it stated it `continues to consider` measures and refers to `already taking` actions.
Government Response
Acknowledged
HM Government
Acknowledged
The government agrees with the Committee’s recommendation. authority spend which has been shared with the Committee and will be published shortly. In the current capital programme (2021-2027) around £347 million of partnership funding has been secured so far – including approximately £128 million in private sector contributions. This more than doubles the £55 million in private sector contributions secured across the whole of the previous six-year programme (2015 to 2021). The government continues to consider measures it can take to mitigate the impact of inflation and other challenges on project delivery in the current programme, including private sector contributions and local authority resources. The actions that the Agency are already taking referenced in response to recommendations 2b and 4b will support local authorities and other risk management authorities to better deliver flood schemes in this flood investment programme. In addition to the partnership funding secured, communities suffering repeated flooding can benefit from the £100 million Frequently Flooded Allowance, designed to help schemes that already qualify for Defra’s Flood Defence Grant in Aid funding under the current capital programme, and meet the department’s eligibility criteria of better protecting a frequently flooded community, but have not been able to secure the funding necessary to progress their scheme. The government has already provided over £900 million of the total Partnership Funding requirement for this programme. Partnership funding figures are published annually in the Agency’s annual flood and coastal erosion risk management reports, this will enable the department to continue monitoring private sector contributions moving forwards.