DEFRA funds most of the Environment Agency's flood-related work and grant aids individual capital improvement projects undertaken by local authorities and, in low-lying areas, internal drainage boards. The programme to manage risk is driven by these operating authorities; DEFRA does not build defences, nor direct the authorities on what specific projects to undertake.
The following table shows current allocations for 2006-07 compared to the beginning of the financial year:
Allocation at start of financial year Allocation now DEFRA grant to Environment Agency for capital spend 189.0 189.0 DEFRA grant to Environment Agency for revenue spend 239.0 224.1 DEFRA grant to local authorities and internal drainage boards for capital flood risk improvement projects 15.7 15.7 DEFRA grant to local authorities and internal drainage boards for capital coast protection improvement projects (which protect against coastal erosion but often also have significant benefits in terms of protection against flooding from the sea) 68.7 68.7
The only change has been a reduction of £14.9 million in grant for Environment Agency revenue spend. The Government also supports revenue spend by local authorities on flood risk management through revenue support grant, administered by the Department for Communities and Local Government.