To ask the Secretary of State for Environment, Food and Rural Affairs what plans she has to increase funding to the Environment Agency for flood defence. [111658]

The outcome of last year's spending review for Government funding of all flood and coastal defence operating authorities (Environment Agency, Local Authorities and Internal Drainage Boards) was:

£ million
Year	Defra	ODPM
2003–04	1114	295
2004–05	129	332
2005–06	154	382
1 Since increased to £136 million from within Defra's overall provision

Defra's allocation to the Environment Agency in 2003–04 for capital grants and contributions to national initiatives is £69 million. Based on all authorities' current forecasts, indicative allocations to the Agency in 2004–05 and 2005–06 are £80 million and £110 million respectively. However these indicative allocations will be subject to review in the light of updated forecasts from authorities. The ODPM funding is distributed to local authorities under the local government finance settlement and is used by them inter alia to fund the levies they pay to the Environment Agency. The levies paid to English Regions of the Agency total over £263 million in 2003–04.The Government have announced their intention to convert these levies into a Defra block grant, though the timing for this has yet to be finalised.

To ask the Secretary of State for Environment, Food and Rural Affairs whether her Department compiles records of flood reduction projects that have received the backing of (a) local authorities and (b) private companies, but have not proceeded because they fail the Environment Agency's cost benefit analysis. [111058]

All flood and coastal defence operating authorities (the Environment Agency, local authorities and Internal Drainage Boards) have a responsibility to ensure that value for money is obtained when investing taxpayers' funding. The rules which govern public sector investment are laid down by HM Treasury, but Defra has published guidance on how these can be met for flood and coastal defences. Data are not maintained on proposed flood alleviation projects which are not economically worthwhile.

To ask the Secretary of State for Environment, Food and Rural Affairs what representations the Environment Agency has received from groups representing local government seeking a change to the system of cost benefit analysis used in flood reduction work. [111071]

Such representations would be directed to Defra, rather than the Environment Agency, as it is this Department which provides guidance on the economic appraisal of flood and coastal defence schemes. A number of representations were received during the consultation on the Flood and Coastal Defence Funding Review and these will be considered for the next review of our guidance. Any proposed changes would be subject to consultation with the industry at large, and with HM Treasury as appropriate.

To ask the Secretary of State for Environment, Food and Rural Affairs pursuant to her answer of 2 April 2003, Official Report, column 764W, on flood reduction, whether the Environment Agency changes the cost benefit analysis used in assessing flood reduction works when local authorities and private companies have also agreed to provide funding for the project. [111072]

As explained in my previous answer, (2 April 2003, Official Report, column 764W), it is often incorrect to deduct contributions from the cost of a flood defence project in assessing its economic viability. However, the issue needs to be considered on a case by case basis. Relevant guidance on the treatment of contributions is contained in Defra's publication, "Flood and Coastal. Project Appraisal Guidance—Economic Appraisal (FCDPAG3)".