Arrangements for funding flood and coastal erosion studies, startegies and projects, which are undertaken by local authorities and internal drainage boards has changed.
From 1 April 2008 responsibility for approving and payment of capital Flood Defence Grant in Aid (FDGiA) across all authorities in England was transferred to the Environment Agency. The Welsh Government has indicated that they do not foresee this decision being adopted in Wales.
How we comply with the relevant legislation is set out in Grant Memorandum - Flood Risk Management under the Water Resources Act 1991 and the Land Drainage Act 1991, and Coastal Erosion under the Coast Protection Act 1949.
How are projects funded?
A new approach to funding flood and coastal risk management has been introduced for projects starting from 2012/13. This is called 'Flood and Coastal Resilience Partnership Funding'.
Instead of meeting the full costs of a limited number of projects, under the new approach a proportion of Government funding would be available to any worthwhile scheme. Funding levels for each scheme will relate directly to the benefits delivered. More details on the assessment of benefits is outlined in the Outcome Measures guidance.
We have recently published detailed guidance explaining how the new approach will work. This information is supported by three short guides aimed at local authorities and internal drainage boards, developers, and local communities, plus a number of case studies.
Additionally, the Flood and Coastal Resilience Partnership Funding - an introductory guide (PDF, 425KB) and the Flood and Coastal Resilience Partnership Funding - policy statement (PDF, 167KB) is available on the Defra website.
For schemes not fully funded by Government to proceed, either the costs would need to be reduced or the remainder of the funding provided through local contributions.
For schemes that qualify for full funding, cost savings or contributions may mean the scheme is delivered sooner, and could release funding to allow others schemes to go ahead.
Case studies of schemes with multiple funding streams, partners and objectives
Defra have recently completed a Research & Development (R&D) project that describes 15 case studies where multiple-funders, multiple-partners and multiple-objectives have provided additional benefits to communities at risk from flooding and coastal erosion. The project also includes information on lessons learned during the case studies.
Applying for funding
A summary of the procedure for applying for grant and securing approval for flood risk management and coastal erosion studies, strategies and projects is provided in Guidance Note 1.
To apply for Government grant, local authorities and internal drainage boards need to construct a Medium Term Plan (Form FRM1) in liaison with their Environment Agency Area Flood and Coastal Risk Manager by the end of June each year. A form to automate the completion of the FRM1 is provided. There is also an Outcome Measure calculator which needs to be used to generate some of the FRM1 data.
Flood defence
Local authorities and internal drainage boards making applications for funding of flood defence schemes should follow the new project appraisal guidance and use the following forms:
When preparing your application and submitting business cases for approval we suggest you use the:
FCRM 2 is the formal application form for flood defence schemes. A copy of this form is included in the Project Appraisal Report Template.
Coastal erosion
Maritime local authorities, who have coastal erosion responsibilities under the Coast Protection Act 1949, should follow the new appraisal guidance and use the forms for approval of coastal erosion projects.
When preparing your application and submitting business cases for approval we suggest you use the:
Claiming grant and delivering projects
The following forms are for use by local authorities and internal drainage boards throughout the process for claiming grant and delivering projects.
Who to contact
Your first point of contact should be our Area Flood and Coastal Risk Managers.
For financial enquiries contact our National Flood Risk Management Finance Team.
