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.
Each year we invite flood risk management authorities to submit details of proposed flood and coastal erosion flood management works (FCRM) which require central government funding (FCRM GiA) for the next five years. The proposals are captured in a report known as the Medium Term Plan (MTP). We combine the MTP from each region into one programme to give an indication of investment needs across England. Download a summary of the grant in allocation process 2014/15.
Work with your Environment Agency Area Flood and Coastal Risk Manager to complete your MTP. Projects do not have to be approved at this stage. Submit your MTP to your local Environment Agency contact on an annual basis, usually around June. The process is slightly different this year, so it’s a good idea to read the guidance before you begin.
Under the partnership funding approach, the amount of FCRM GiA available to any capital project directly relates to the project outcomes (OMs). You’ll need to use the outcome measures in the partnership funding calculator to generate a PF score. We use the PF score to help prioritise government funding and it is important that data is accurate. We have amended the guidance and the calculator for 2014/15. The partnership funding calculator and the estimating outcome measures guidance are available to download from the flood and coastal risk management outcome measures page.
Download a high resolution map to determine at a glance whether a project falls within a deprived area. You'll need this information for the partnership funding calculator.
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.
