Source · Select Committees · Public Accounts Committee
Recommendation 21
21
Accepted
Flood defence project prioritisation unfairly disadvantages rural communities, despite Defra's guidance
Conclusion
The level of investment in an area is determined by the level of flood risk and Defra scores its business cases against factors including number of homes, businesses and infrastructure protected.44 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. Its guidance states that implementation might need to be designed and delivered differently in rural compared to urban areas and it encourages departments to overcome undesirable policy impacts in rural areas.45 Defra told us that, of the £5.2 billion investment, 45% of it will benefit properties in rural communities, which will include some smaller villages and communities. In addition, Defra set aside £100 million of the capital investment for a Frequently Flooded Allowance which targets the communities that are worst affected by frequently flooding. However, we understand that the current method for prioritising projects favours the more population dense urban locations over rural, leaving some rural communities without any protection and there is a lack of provision for smaller communities of fewer than 100 houses that can nevertheless be devastated by the impact of flooding. It was not clear to us that Defra was following its own guidance on rural proofing.46
Government Response Summary
The government agrees and commits that by summer 2025, the Agency will conduct an analysis of the geographical distribution of investment from the floods capital programme to understand the impact of investment decisions. The response also highlights existing measures, such as the £100 million Frequently Flooded Allowance, designed to support frequently flooded and smaller rural communities.
Government Response
Accepted
HM Government
Accepted
5.1 The government agrees with the Committee’s recommendation. Target implementation date: Summer 2025 5.2 By the summer of 2025, the Agency will conduct analysis of the geographical distribution of investment from the floods capital programme to understand the impact of investment decisions. 5.3 Since 2021, the Agency has published annual investment levels and numbers of properties better protected by their 15 geographical regions in their Flood and coastal erosion risk management reports. Given that flood schemes take multiple years to design, plan and build, it is difficult to judge the impacts of investment decisions on geographical distribution on an annual basis. Therefore, a longer-term analysis will be undertaken by the Agency as more data are gathered, which will be completed in Summer 2025. 5.4 The investment programme distributes funding across the country wherever the risk is greatest and the benefits are highest. It is forecast that every English region will receive more investment in flood and coastal defences from the current programme than the previous (2015-2021) programme. A consistent methodology is used, using a national funding formula under the Defra partnership funding policy, introduced in 2011, to allocate funding to schemes proposed by all risk management authorities. This ensures a fair distribution of funding based on agreed priorities, principles, and needs – there are no specific regional targets. 5.5 The government recognises the important role local authorities have to manage local flood and coastal risks. DLUHC is the department with responsibility for local government funding and has set out that it will not be proceeding with the Review of Relative Needs and Resources or Business Rates Reset during the current spending review period. The government remains committed to improving the local government finance landscape in the next Parliament. 5b. PAC recommendation: 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. 5.6 The government agrees with the Committee’s recommendation. Recommendation implemented 5.7 Rural proofing aims to understand the intended outcomes of government policy intervention in a rural context. The 2021-2027 £5.2 billion floods investment programme considers impacts on rural areas, with approximately 40% of schemes and 45% of investment better protecting properties in rural communities. Funding is consistently distributed across the country wherever the risk is greatest, and the benefits are highest – determined by detailed place-based analysis of: • all benefits arising as a result of the investment, • households moved from one category of flood risk to a lower category, • households better protected against coastal erosion, and • statutory environmental obligations met through flood and coastal erosion risk management. In the previous programme, over half of the funding allocated was for wider economic benefits, including better protecting businesses, agriculture, schools, hospitals, and transport links. 5.8 Furthermore, in 2021, government announced the £100 million Frequently Flooded Allowance, ringfenced from the £5.2 billion floods investment programme. This was designed to address some of the specific challenges faced by frequently flooded communities, particularly those that are smaller and more dispersed and struggle to secure the funding they need to improve their resilience to flooding. Wider support also includes £25 million of funding to improve flood resilience through a new Natural Flood Management programme and Catchment Sensitive Farming advice and support for farmers. 5.9 Investment in England’s flood and coastal erosion risk management is not limited to the floods investment programme. The government is investing in other actions that support flood and coastal erosion risk management, including the £200 million Flood and Coastal Resilience Innovation Programme - where 13 projects are specifically working to improve resilience in rural communities.