Funding gap threatens to sink flood defence plans
Government plans to spend 拢2.3bn plugging holes in flood defences is at risk because it relies on 拢600m of private cash, a parliamentary committee has warned.
The cross-party Department for Environment, Food and Rural Affairs Committee has said that the low levels of private funding which has been attracted to date threaten to sink the ambitious scheme which would protect 300,000 properties.
The funding gap, which was identified in the 2013-14 Defra performance report, also highlighted an absence of transparency in plans to find budget savings in the department in the coming years.
Committee Chair, Anne McIntosh MP commented: 鈥淭he Government has committed 拢2.3 billion in capital funding for six years鈥 investment aimed at protecting 300,000 properties, but that plan relies on external contributions of 拢600 million.
鈥淲e support the principle that the private sector should help to fund new flood defence schemes, but we have repeatedly expressed concern about the relatively small amounts of private sector funding secured to date under the Partnership Funding approach, with only 拢40 million of the 拢148 million secured up to 2014-15 coming from sources beyond local government.
鈥淚t is unclear how the 拢600 million target can be met, and we want Defra to demonstrate how it intends to obtain that money and to explain the impact on its investment programme if the money does not come forward.鈥
鈥淭he Committee also repeats its call on Government to move to a total expenditure classification for flood risk management and flags that revenue funding would benefit from a six-year funding commitment alongside capital. The Committee believes revenue and capital spending must be balanced to ensure both receive the same priority.鈥
The Defra performance report
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