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 in the first two years. Defra and the Agency did not assess the value for money of using part of this underspend to meet the shortfall in its maintenance budget. Instead, they deferred the spending to the last few years of the capital programme when it will need to spend around £1 billion per year.17 Defra has provisionally agreed with HM Treasury to move £25 million from the capital budget into its maintenance budget for 2023–24. The Agency expects this additional funding will allow it to reach its target of 94.5% of assets at required condition, whereas the Agency’s own target was 98%.18 Building in flood risk areas