Source · Select Committees · Public Accounts Committee

Seventh Report - Resilience to flooding

Public Accounts Committee HC 71 Published 17 January 2024

Report Status

Government responded

Conclusions & Recommendations

27 items (5 recs)

Source

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Government Response

AI assessment · 27 of 27 classified

Accepted 19

Acknowledged 4

Deferred 4

Recommendations

1 result

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 … Read more 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 Show less

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.

HM Treasury

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Conclusions (3)

Observations and findings

24 Conclusion Acknowledged

Flood Re, a joint initiative between the insurance industry and the government, was established to ensure affordable flood risk insurance is available to householders. It was established by the Water Act 2014, launched in 2016, and due to be in place until 2039. In 2022, Government implemented some changes to …

Government Response Summary

The government acknowledges the committee's observations about Flood Re and states that Flood Re will publish its next Quinquennial Review in July 2024, with the Secretary of State considering its recommendations. The department will write to the Committee by January 2025.

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26 Conclusion Acknowledged

Flood Re’s existence is due to end in 2039, by which time it was expected that insurance would be affordable to householders given the anticipated reduction in flood risk as a result of improvements to flood resilience. Defra told us it would keep under review what is the right insurance …

Government Response Summary

The government acknowledges the committee's observation regarding Flood Re's transition and states that Flood Re will publish its next Quinquennial Review in July 2024, which the Secretary of State will consider. The department will write to the Committee by January 2025.

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27 Conclusion Acknowledged

Flood Re is required to publish a transition plan every five years outlining how they plan to manage the transition. Flood Re published its most recent Transition Plan in July

Government Response Summary

The government acknowledges the committee's observation about Flood Re's requirement to publish transition plans, referencing the upcoming Quinquennial Review in July 2024 and the Secretary of State's consideration of its recommendations. The department will write to the Committee by January 2025.

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