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Flood Control: Finance

Volume 504: debated on Tuesday 26 January 2010

To ask the Secretary of State for Environment, Food and Rural Affairs how much is planned to be spent by (a) his Department, (b) local authorities and (c) the Environment Agency on flood and coastal erosion risk management in each year from 2010-11 to 2012-13, indicating in respect of each total how much stimulus package spending brought forward from another year it (i) includes and (ii) excludes. (313348)

DEFRA expects to spend £780 million on flood and coastal erosion risk management in 2010-11. This includes expenditure by local authorities (supported by Formula Grant) and the Environment Agency (through Grant in Aid). In addition, £20 million of the original £800 million figure for 2010-11 was brought forward into 2009-10 budgets as part of the fiscal stimulation package.

Within the above, the Department has a retained budget for flood and coastal erosion risk management of £35 million for 2010-11. This will be spent taking forward recommendations within the Pitt review of the 2007 floods, and also to help communities adapt to the risk of flooding and coastal erosion.

Based on historical spending by local authorities, DEFRA estimates that its total expenditure on flooding and coastal erosion will be at least £87 million in 2010-11. However, the need for local authorities to spend more on flood and coastal erosion risk management was recognised at the last spending review and additional funding was provided as part of the overall formula grant settlement. As Formula Grant is not ring-fenced it is for individual authorities to decide how much to spend subject to limits on overall budgets and the need for investment on other priorities.

The Environment Agency’s Flood Defence Grant In Aid budget for 2010-11 is £659 million in 2010-11. This figure also reflects the £20 million brought forward to 2009-10.

Budgets for 2011-12 and 2012-13 have not been set. These will be determined by the next spending review.

To ask the Secretary of State for Environment, Food and Rural Affairs how much was spent by (a) his Department, (b) local authorities and (c) the Environment Agency on flood and coastal erosion risk management in each year between 2007-08 and 2009-10, indicating in respect of each total how much stimulus package spending brought forward from another year it (i) includes and (ii) excludes. (313349)

The following table sets out the amount spent by DEFRA, the Environment Agency and local authorities on flood and coastal erosion risk management for the three-year period.

£ million

2007-08

2008-09

2009-10

Total

589.8

662.15

714.9

(a) DEFRA

0

3.75

20.5

(b) Local authorities

90.0

90.0

187.0

(c) Environment Agency

499.8

568.4

607.4

1 Estimated.

(i) The figure given against Environment Agency expenditure in 2009-10 includes £20 million brought forward from 2010-11 budgets as part of the fiscal stimulation package.

(ii) Taking account of the adjustment, total expenditure is expected to be £780 million in 2010-11.

The figures at (a) reflect budget retained by DEFRA for the introduction of measures from 2008-09 to assist communities in adapting to future risks and work arising from the review by Sir Michael Pitt into the floods of 2007. It does not include the Flood Defence Grant in Aid allocated to the Environment Agency.

The Environment Agency is funded by Flood Defence Grant in Aid from DEFRA.

Local authority spending on flood and coastal erosion risk management is supported by Formula Grant. The £87 million figure quoted for 2009-10 is an estimate of annual expenditure based on historical data prior to the current spending period. The need for local authorities to spend more on flood and coastal erosion risk management was recognised at the last spending review and additional funding was provided as part of the overall formula grant settlement. As Formula Grant is not ring-fenced it is for individual authorities to decide how much to spend subject to limits on overall budgets and the need for investment on other priorities.

Figures at (a) (b) and (c) for 2009-10 are provisional.