"Greater local discretion over how funding is targeted
has the potential to improve value for money in flood risk
management. Local bodies will have to meet the new expectations
placed on them - including that of raising investment locally -
while under the pressure of delivering on other newly devolved
responsibilities. If these challenges are not met, the Department's
reforms will have failed to fulfil their potential to increase
levels of investment in flood management and value for money to the
taxpayer."
Amyas Morse, head of the National Audit Office, 28
October 2011
The National Audit Office reports today that giving greater
responsibility and discretion to local authorities to identify
flood risk and target investment raises significant challenges,
especially during a time of budget cuts and other newly devolved
responsibilities. The NAO considers that greater value for money
can be achieved through these reforms, but key elements of what is
required are not yet in place.
Local knowledge of surface water flood risk is far less advanced
than national information on risk of flooding from rivers and the
sea. Local authorities are experiencing difficulty in recruiting
and retaining appropriately qualified staff. Only 30 per cent of
the local authorities the NAO spoke to thought they had the
required technical expertise. Local decision-making is hampered by
the need to cross-refer between nearly 20 different plans that
affect local flood risk management. It is not yet clear how the
Department and the Environment Agency will provide assurance
nationally that arrangements are working.
The Environment Agency has improved its own efficiency since the
NAO last reported in 2007. The Agency has a better understanding of
the condition of existing sea and river defences. It has brought 98
per cent of defences classified as 'high consequence' if they fail,
up to target condition and is directing more of its funding towards
these defences. In addition, the Agency has provided better flood
protection for 182,000 households against a target of 145,000.
The Agency estimates that, owing to climate change and ageing
defences, an increase of £20 million is required on average each
year between 2011 and 2035 to maintain the current level of flood
protection. However, central government funding to the Agency has
reduced by 10 per cent over this spending review period compared
with the last. If central funding does not increase after 2014-15,
maintaining and improving the nation's flood defences will depend
on significant additional funding being secured locally. Currently,
some 95 per cent of funding is provided by central government.
The NAO found that local bodies will be hard-pressed to plug any
funding gap while under pressure to deliver a number of other newly
devolved responsibilities. And the Department's plans to encourage
more local funding could see some defence schemes that have
attracted private or other funding going ahead in advance of
schemes elsewhere that provide greater benefits.
Publication details:
HC: 1521, 2010-2012
ISBN: 9780102976748