Skip to main content

Flood Control: Finance

Volume 463: debated on Monday 3 September 2007

To ask the Secretary of State for Environment, Food and Rural Affairs if he will instigate an immediate review of the Environment Agency's planned expenditure on (a) capital projects and (b) regular maintenance in respect of flood defence in each of the next three years. (152882)

The Environment Agency produces annual Medium Term Plans setting out their proposed flood risk management capital schemes for the following five years. This year's exercise is due to be completed in the autumn and will be reviewed by the Department. It will inform targets and funding allocations for the 2007 Comprehensive Spending Review (CSR07) period (2008-09 to 2010-11).

The Environment Agency currently develop a maintenance programme each year based on their assessment of the condition of its flood defences. Outcome Measures for flood risk management have recently been defined and it is anticipated that these will be used to set targets progressively during the CSR07 period, starting with the capital programme in 2008-09 and extending to maintenance and other flood risk management activities from 2009-10. This should enable a direct comparison of, and more efficient allocation between, capital and maintenance works.

To ask the Secretary of State for Environment, Food and Rural Affairs by what mechanism internal drainage boards are funded by the public purse. (153701)

The legislative framework for internal drainage board (IDB) funding is the Land Drainage Act 1991. Under the Act, there are three mechanisms by which IDBs can receive public funding to support their flood risk management and associated activities.

IDBs may impose special levies on local authorities (district and unitary authorities) to fund their work in the district. This is not permissive (or discretionary) expenditure and the levies must be paid. Relevant councils do sit on the IDBs and while these members are not appointed to represent local authority interests on the IDB, they are in a position to have some influence on the sums raised through special levies.

All properties within a drainage district are deemed to derive benefit from the activities of an IDB. Every property is therefore subject to a drainage rate paid annually to the Board.

For the purposes of rating, properties are divided into (a) agricultural land and buildings and (b) other land (such as domestic houses, factories, shops etc). Occupiers of all "other land" pay council tax or non-domestic rates to the local council who then are charged by the Board under the special levy arrangements above. The Board, therefore, only imposes drainage rates direct on agricultural land and buildings.

The basis of this is that each property has been allotted an "annual value" which were last revised in the early 1990s. The annual value is an amount equal to the yearly rent, or the rent that might be reasonably expected if let on a tenancy from year to year commencing 1 April 1988.

The annual value remains the same from year to year. Each year the Board lays a rate “in the £” to meet its estimated expenditure. This is multiplied by the annual value to produce the amount of drainage rate due on each assessment. A breakdown of the rate in the £ is shown on the reverse of the demand note to show how money is spent.

DEFRA funds individual capital improvement projects promoted by IDBs, subject to relevant economic, social, environmental and prioritisation criteria.

To ask the Secretary of State for Environment, Food and Rural Affairs how much public funding was allocated to the internal drainage boards in each year since 1997-98. (153728)

The following table shows details of public funding allocated to internal drainage boards (IDBs) in each year from 1999-2000. Figures prior to this year are not held centrally by DEFRA. Please note that not all income is included in the 2005-06 figure.

Income received by internal drainage boards£ millionAgricultural drainage rates1Special levies2EA cont3Devp cont4Other beneficiary contributions5Government grant6Loans received7Other8Total1999-200011.318.82.1—0.80.50.66.440.52000-0111.119.52.01.10.30.30.27.542.02001-0111.720.22.31.30.22.00.66.745.02002-0312.421.32.61.40.82.00.56.847.82003-0412.822.12.51.90.21.31.05.247.0 2004-0513.423.72.52.10.81.11.46.451.52005-0613.424.72.8—————40.9 1 Agricultural drainage rates collected by the IDB from agricultural land and buildings within the drainage district.2 Special levies collected by the IDB—local authorities pay special levies to internal drainage boards which fall entirely or partly within their boundaries to take account of works the boards do in relation to flood risk management, for example in urban areas.3 Contributions from the Environment Agency.4 Contributions from developers.5 Contributions from other beneficiaries.6 Government grant—DEFRA funds individual capital improvement projects promoted by IDBs subject to relevant economic, social, environmental and prioritisation criteria.7 Loans raised from the public works loans board to fund balance of grant costs etc.8 All other income (including contributions from local authorities, income from rechargeable works undertaken for others, and interests received on deposits).Note:In financial year 2005-06, not all information on income and expenditure was collected centrally by DEFRA. As such the figure represented in the total column does not equal all income received by IDBs in that financial year.

To ask the Secretary of State for Environment, Food and Rural Affairs what the (a) capital and (b) resource departmental expenditure limit for flood defence grant in aid was in each year since 1997 for (i) England and (ii) each region; and if he will make a statement. (153590)

The Departmental Expenditure Limit (DEL) has only applied to the Environment Agency since 2004 when flood risk funding was provided directly rather than through the local authority levy.

The DEL for Flood Defence Grant-in-Aid (FDGIA) is provided to the Agency and is not split across regions. The Environment Agency seeks to ensure that funding is moved flexibly across regions within the DEL total to ensure the best value for spend.

The following table shows the figures for the Environment Agency FDGIA from 2004 to 2008.

£ million

2004-05

2005-06

2006-07

2007-08 (Budget)

Capital

189

189

195

189

Revenue

166.6

261.3

223.9

246.9

Total

355.6

450.3

418.9

435.9

The Agency also receives other income from charges, precepts, contributions and residual local levies. In addition to the FDGIA made available to the Environment Agency, DEFRA also provides capital grants to local authorities and Internal Drainage Boards (IDBs).

The table shows DEL from 1997 to 2008.

£ million

1997-98

n/a

1998-99

n/a

1999-2000

n/a

2001-02

n/a

2002-03

48.7

2003-04

49

2004-05

45.8

2005-06

73.4

2006-07

84.4

2007-08

67.3

2007-08 (Budget)

Local authorities and IDBs receive revenue funding from the Department of Communities and Local Government, which contributes to the cost of operation. They also receive other income from charges, contributions and levies.