Recommendation 19

HM Government Accepted

2.1 The government agrees with the Committee’s recommendation. Recommendation implemented 2.2 The Agency has undertaken a detailed assessment of deliverability of the capital programme. This involved getting the latest project information from local teams within the Agency, other risk management authorities and supply partners. From this, the Agency has undertaken an assessment based on project forecasts, confidence levels, and previous experience. Based on this assessment, the Agency’s current forecast is that a target of 200,000 properties better protected would be a robust forecast for the programme by the end of March 2027. 2.3 At the end of the third year of delivery (March 2024), the Agency forecast that it will have achieved approximately 90,000 properties better protected, which would mean it has delivered 45% of the target half-way through the programme. The Agency forecasted by March 2025 it will have achieved 114,000 properties better protected and will also have over 60,000 properties linked to projects that will be in construction. 2.4 In the previous programme, between 2015 and 2021, the Agency and its partners completed more than 850 projects to better protect more than 314,000 homes as well as nearly 600,000 acres of agricultural land. The government’s £5.2 billion flood programme between 2021 and 2027 benefits both urban and rural communities, with approximately 40% of schemes, and 45% of investment expected to better protect properties in rural areas. The investment in projects around the country is in line with government’s partnership funding policy that values a range of benefits including properties protected, environmental improvements and economic benefits. Decisions on future capital spending on flood risk management will be subject to the next Spending Review. 2b. PAC recommendation: 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. 2.5 The government agrees with the Committee’s recommendation. Recommendation implemented 2.6 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. 2.7 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). 2.8 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. 2.9 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.