Flood defences

Public Accounts Committee Closed Inquiry
Opened: 25 Oct 2023 Closed: 3 Apr 2024 Parliament page
Lives, livelihoods and wellbeing are put at risk by flooding and coastal erosion. According to the Environment Agency (EA), an estimated 5.2m homes and businesses in England are at risk of flooding, and around 700 properties are vulnerable to coastal erosion over the next twenty years. Government set the EA … Read more
5 Recommendations
22 Conclusions
1 Report
1 Letter
Activity timeline 3 events
2 Apr
2024
Report published
17 Jan
2024
Report published
10 Jan
2024
Correspondence
Title HC No. Published Items Response
Seventh Report - Resilience to flooding HC 71 17 Jan 2024 27 Responded
Recommendations & Conclusions
27 results
2 Conclusion Accepted
Seventh Report - Resilience to flo…
Publish robust forecasts for properties better protected and plans to ease small project approvals.
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 … Read more
Government Response
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.
HM Treasury
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3 Recommendation Accepted
Seventh Report - Resilience to flo…
Set out value for money of capital and maintenance budget options for flood defence.
Defra has not established what the appropriate balance is between building new defences and maintaining existing ones. The Agency is responsible for maintaining its existing assets and has assessed that optimal value for money is achieved when 98% of its … Read more
Government Response
The government agreed to the recommendation and committed to continuing to identify the optimal balance of capital and maintenance. They will write to the Committee by Spring 2025 with an updated value for money assessment after the next spending review.
HM Treasury
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4 Conclusion Accepted
Seventh Report - Resilience to flo…
Identify local authority skills and resources needed to implement Schedule 3 and drainage guidance.
The risks from surface water flooding are increasing, but Defra is not providing the necessary leadership and support for local authorities on how this will be addressed. Surface water flooding is a growing issue with 3.4 million properties at risk … Read more
Government Response
The government agreed and stated the Agency is already providing guidance and training through various initiatives like webinars and a new projects site. They committed to working with local authority representatives to understand training needs and fill identified gaps.
HM Treasury
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5 Recommendation Acknowledged
Seventh Report - Resilience to flo…
Set out improved understanding of investment decisions impacting geographical distribution and smaller communities.
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
Government Response
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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6 Conclusion Deferred
Seventh Report - Resilience to flo…
Write to Committee within 12 months on Flood Re closure implications and transition plan.
We are concerned that Flood Re is not providing the protection that was envisaged and that 2039 will likely be too soon to close down the Flood Re scheme given the increasing risk from flooding and slower progress on protecting … Read more
Government Response
The government agreed but stated Flood Re intends to publish its next Quinquennial Review in July 2024, which the Secretary of State will then consider, effectively deferring the requested information to that process.
HM Treasury
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7 Conclusion Accepted
Seventh Report - Resilience to flo…
Strengthen follow-up on planning advice and reduce new development in high flood risk areas.
We are concerned that new housing continues to be built in areas of high flood risk without adequate mitigations. Although the Agency is a statutory consultee for planning applications, it does not have powers in the planning process to prevent … Read more
Government Response
The government agreed and noted work is underway to introduce National Development Management Policies to elevate the legal status of national planning policies on flood risk. It also committed to keeping flood risk and planning policy under review.
HM Treasury
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1 Conclusion Accepted
Seventh Report - Resilience to flo…
Public Accounts Committee scrutinised Defra and Agency's flood risk management and defence assets.
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Environment, Food & Rural Affairs (Defra) and the Environment Agency (the Agency) about their long-term ambition and objectives for flood risk, … Read more
Government Response
The government stated it is developing a methodology for measuring and reporting ‘net’ change in flood risk, with the new National Flood Risk Assessment (NaFRA2) due by the end of 2024, enabling reporting from 2025. Further work will assess appropriate metrics by the end of 2025.
HM Treasury
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8 Conclusion Deferred
Seventh Report - Resilience to flo…
Environment Agency targets 98% of high consequence flood defence assets at required condition.
The Agency is responsible for maintaining existing flood defence assets that it owns. Its modelling showed that it is best value for money to have 98% of its high consequence assets at required condition. Timely maintenance is important because if … Read more
Government Response
The government agrees and states the Agency is working on evidence to identify the optimal balance of capital and maintenance funding, noting £25 million was moved to maintenance for 2023–24. They commit to continue this work and write to the Committee by Spring 2025 with an updated assessment after the next spending review.
HM Treasury
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9 Conclusion Deferred
Seventh Report - Resilience to flo…
Defra underfunded Environment Agency's flood defence maintenance, setting lower 94.5% asset condition target.
Maintaining assets at the required condition needs funding: in preparing for the 2021 Spending Review, the Agency estimated it needed funding of £235 million a year to keep 98% of its assets at their required condition. Defra decided not to … Read more
Government Response
The government agrees and states the Agency is working on evidence to identify the optimal balance of capital and maintenance funding, noting £25 million was moved to maintenance for 2023–24. They commit to continue this work and write to the Committee by Spring 2025 with an updated assessment after the next spending review.
HM Treasury
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10 Conclusion Accepted
Seventh Report - Resilience to flo…
Environment Agency failed to meet reduced asset condition target, increasing flood risk for 203,000 properties.
The Agency has not been able to reach even the 94.5% level. In summer 2023, only 93.5% of the Agency’s high consequence assets were at the required condition.14 203,000 7 Q 65; C&AG’s Report, para 11 8 Q 65 9 … Read more
Government Response
The government acknowledges the committee's observation on asset condition targets, stating the Agency is working to identify the optimal balance of capital and maintenance to maximise value for money. It confirms the transfer of £25 million to the maintenance budget and commits to providing an updated assessment by Spring 2025.
HM Treasury
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11 Conclusion Accepted
Seventh Report - Resilience to flo…
Defra and Agency failed to assess £310 million capital underspend for maintenance shortfall.
HM Treasury gives departments some flexibility to switch money between the capital programme and maintenance funding, for example if capital spending is delayed. Because of the slow start to the capital programme, the Agency spent £310 million less than planned … Read more
Government Response
The government acknowledges the committee's observation on budget management, stating that the Agency is working on improved evidence to identify the optimal balance of capital and maintenance funding to maximise value for money. It also confirms the £25 million transfer to maintenance for 2023-24 and commits to providing an updated assessment by Spring 2025.
HM Treasury
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12 Conclusion Accepted
Seventh Report - Resilience to flo…
Environment Agency lacks power to prevent building on flood plains without mitigation.
We have reported previously on the government’s current strategy not to build houses on flood plains unless there was no alternative and that any development on flood plains should not increase the risk of flooding.19 The Agency is a statutory … Read more
Government Response
The government acknowledges the committee's observation about building on floodplains, affirming that its policy avoids inappropriate development and noting the high compliance with Agency advice. It also highlights the DLUHC's role in enforcement, new measures from the Levelling Up and Regeneration Act 2023, and a commitment to review flood risk planning policy.
HM Treasury
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13 Conclusion Accepted
Seventh Report - Resilience to flo…
Significant planning applications proceed against Environment Agency flood risk advice despite compliance rate.
The Agency told us it comments on about 110,000 land use planning applications each year, and most of these comments are about flood risk. The Agency told us that 99% of new homes’ planning applications complied with the Agency advice. … Read more
Government Response
The government acknowledges the committee's observation by reiterating the high compliance rate with Agency advice and clarifying that DLUHC is responsible for planning policy and enforcement. It also highlights new enforcement measures via the Levelling Up and Regeneration Act 2023 and ongoing work to elevate national planning policies on flood risk.
HM Treasury
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14 Conclusion Deferred
Seventh Report - Resilience to flo…
Over half of Local Planning Authorities rarely inspect flood risk compliance due to resource scarcity.
In July 2021, Defra published a review of policy for development in areas at flood risk. This research found that over half of Local Planning Authorities said they rarely or never inspected a new development to check compliance with flood … Read more
Government Response
The government agrees and states the recommendation is implemented, affirming that DLUHC is responsible for national planning policy, compliance, and enforcement, and that it is the role of Local Planning Authorities (LPAs) to take enforcement action. They note existing policies and ongoing work to strengthen national planning policies on flood risk.
HM Treasury
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15 Conclusion Accepted
Seventh Report - Resilience to flo…
Surface water flooding risks increasing, impacting 3.4 million properties, challenging accurate forecasting and warning.
The risks from surface water flooding are increasing and will continue to increase due to climate change.24 3.4 million properties are at risk of surface water flooding in England.25 The increase in impermeable surfaces—such as driveways—is adding to the 15 … Read more
Government Response
The government acknowledges the increasing risks of surface water flooding by detailing its commitment in the Plan for Water to require standardised sustainable drainage systems (SuDS) and its ongoing support, training, and guidance for local authorities.
HM Treasury
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16 Conclusion Accepted
Seventh Report - Resilience to flo…
Environment Agency needs improved surface water modelling, with NaFRA2 enhancing flood risk assessment.
The Agency told us it needed better surface water modelling and mapping and described how its new national flood risk assessment model (NaFRA2), which it expects to be completed by the end of 2024, will help. It expects NaFRA2 will … Read more
Government Response
The government confirms the Environment Agency is working with Defra to develop a new National Flood Risk Assessment (NaFRA2), due for publication by the end of 2024, which will improve surface water modelling and mapping by establishing a new risk baseline for reporting change from 2025 onwards.
HM Treasury
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17 Conclusion Accepted
Seventh Report - Resilience to flo…
Many local authorities lack staff capabilities and funding for surface water flooding
The Agency is not the lead risk authority for surface water flooding: this falls under the remit of a number of bodies (such as the Highways Agency) with local authorities having lead responsibility.30 Local authorities’ core budget is not ring-fenced … Read more
Government Response
The government agrees and states the recommendation is implemented, highlighting commitments in the Plan for Water for SuDS, Defra's review of skills gaps, and the Agency's ongoing support to local authorities through training, webinars, and a new guidance platform. The Agency also commits to work with local authorities to understand and address future training needs.
HM Treasury
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18 Recommendation Accepted
Seventh Report - Resilience to flo…
Prioritise implementation of Schedule 3 to improve sustainable drainage systems for new construction
Under Schedule 3 to the Floods and Water Management Act 2010, any construction work that has drainage implications would need approval from the local authority that its drainage met national standards for sustainable drainage before it is connected to the … Read more
Government Response
The government accepts the recommendation, stating it has committed in the Plan for Water to requiring standardised sustainable drainage systems (SuDS) in new developments, subject to final decisions and consultation. It is also supporting local authorities with training and guidance to improve planning decisions and manage surface water flood risk.
HM Treasury
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19 Conclusion Accepted
Seventh Report - Resilience to flo…
Flood defence programme experienced slow start, leading to reduction in planned projects
When the six-year £5.2 billion capital programme to build new flood defence assets 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.35 The programme … Read more
Government Response
The government agrees and states the recommendation is implemented, with the Agency having already undertaken a detailed assessment that now forecasts 200,000 properties better protected by March 2027. The Agency is also preparing further improvements to approvals processes for smaller projects and streamlining business cases.
HM Treasury
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20 Conclusion Accepted
Seventh Report - Resilience to flo…
Flood defence programme forecast to protect 40% fewer properties than originally committed
The Agency’s current forecast is that these 1,500 projects will provide better protection to 200,000 properties by the end of the programme, a reduction of 40% on the original commitment of 336,000. Defra is yet to agree with HM Treasury … Read more
Government Response
The government agrees and states the recommendation is implemented, with the Agency having already undertaken a detailed assessment leading to a robust forecast of 200,000 properties better protected by March 2027. The Agency is also preparing further improvements to approvals processes for smaller projects and streamlining business cases.
HM Treasury
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21 Conclusion Accepted
Seventh Report - Resilience to flo…
Flood defence project prioritisation unfairly disadvantages rural communities, despite Defra's guidance
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 … Read more
Government Response
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.
HM Treasury
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22 Conclusion Accepted
Seventh Report - Resilience to flo…
Significant portion of flood defence projects depend on securing external partnership funding
Some 40% of projects need to find partnership funding to be able to go ahead.47 Partnership funding is an important source of funding, where risk management authorities (such as local authorities) raise funds from the public and private sectors towards … Read more
Government Response
The government agrees and states the department has completed an assessment of local flood and coastal risk and local authority spend, which will be published shortly. They report £347 million in partnership funding secured so far, including £128 million from the private sector, and commit to continue monitoring private sector contributions annually.
HM Treasury
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23 Recommendation Accepted
Seventh Report - Resilience to flo…
Defra failed to identify areas struggling to secure local flood defence partnership funding
Some parts of the country may have lost out on funding from the programme because they were less able to secure partnership funding.49 In February 2021, we recommended Defra and the Agency should identify areas where there is likely to … Read more
Government Response
The government agrees and states the department has completed an assessment of local flood and coastal risk and local authority spend, which has been shared with the Committee and will be published shortly, directly addressing the recommendation to identify areas of funding shortfall.
HM Treasury
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24 Conclusion Acknowledged
Seventh Report - Resilience to flo…
Flood Re established in 2016 to provide affordable flood insurance to householders
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 … Read more
Government Response
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.
HM Treasury
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25 Recommendation Accepted
Seventh Report - Resilience to flo…
Unclear how many high-risk properties benefit from Flood Re insurance cover
Defra told us that Flood Re is working well: in 2022–23, Flood Re provided cover for 265,000 household property policies and more than 500,000 households have benefitted since it launched. Before Flood Re was introduced, 9% of policyholders with a … Read more
Government Response
The government agrees with the committee's implicit recommendation and will write to the Committee by January 2025. This communication will follow Flood Re's Quinquennial Review in July 2024, which will make recommendations for the Secretary of State to consider.
HM Treasury
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26 Conclusion Acknowledged
Seventh Report - Resilience to flo…
Flood Re's future insurance mechanism to be reviewed ahead of 2039 expiry
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 … Read more
Government Response
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.
HM Treasury
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27 Conclusion Acknowledged
Seventh Report - Resilience to flo…
Flood Re consistently publishes its required five-year transition plans outlining flood management strategies.
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
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.
HM Treasury
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Government Response AI assessment · 27 of 5 classified
Accepted 19
Acknowledged 4
Deferred 4
Total 5 recs + 22 conclusions
Correspondence 1 letter
10 Jan 2024 Joint correspondence from Tamara Finkelstein CB, Permanent Secretary, Department for Environment & Rural Affairs and Philip Duffy, Environment Agency Chief Executive, Environment Agency, re NAO’s report, ‘Resilience to flooding’, dated 7 December 2023
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