Delegation of Grant-aiding Process
to Environment Agency
Letter from the Head of Flood Risk Management at the
Agency
3 March 2006
| To: |
Chief Executives of English Borough, County, District and
Metropolitan Councils |
| cc: |
Local Government Association |
|
Please direct enquiries to: enquiries@environment-agency.gov.uk |
Dear Sir/Madam
Implementing the delegation of Defra responsibilities to the Environment Agency for grant-aiding flood risk management and coastal protection capital schemes under the Land Drainage and Coast Protection Acts
Defra announced in August 2005 their intention to delegate the above responsibilities to the Environment Agency.
I wish to inform you of the arrangements for the first phase of the delegation of Defra's responsibilities. This first phase involves grant approvals and payment of grant for capital schemes undertaken by Local Authorities and Internal Drainage Boards (IDBs) under the Land Drainage Act from 1 April 2006. The Environment Agency will operate in accordance with the principles set out in the current grant memoranda between Defra and Local Authorities and Internal Drainage Boards and the memoranda should be read with EA replacing references to MAFF.
The second phase is the delegation of grant approvals and payment of grant for capital schemes promoted under the Coast Protection Act 1949. This will be completed by 1 April 2008 and not earlier than 1 April 2007.
The Local Government Association (LGA) and the Association of Drainage Boards (ADA) have been consulted. They sought reassurance that Local Authorities and IDBs would receive the same level of support and advice in developing their schemes as they do from Defra Regional Engineering staff. We have taken this request into account in the arrangements for taking on the advisory and grant approval role.
We have decided that our Area Flood Risk Managers will act as a first-stop shop, for the appraisals and approvals of new schemes. Please submit all applications for grant approvals to your local Area Flood Risk Manager. Early involvement on how a Local Authority or IDB scheme fits into our plans and programmes will ensure that schemes are consistent with our approach and make the appraisal and approvals process as smooth as possible. The Area Flood Risk Manager will be supported with technical advice from the Environment Agency's National Capital Programme Service and National Environmental Assessment Service.
We are offering to organise workshops this summer to all Operating Authorities on our appraisal, approvals and procurement policies and processes. These will promote the new arrangements, improve understanding and provide an opportunity to share best practice.
We will adopt the current Defra target times for approval of schemes. We will use our approval procedures including approving variation orders. It is expected that the majority of Land Drainage Act schemes in phase 1 will be below £2m in value and approved regionally. Schemes which are greater than £2m will be approved nationally. We will refer those schemes above £50m in whole-life costs to Defra for approval.
We will continue to honour Defra's commitment to approve funding for flood management works that are necessary to meet legal requirements under the European Birds and Habitats Directives. From 2007/08 funds to meet these requirements will be allocated by the Agency on the basis of the Medium Term Plan. Therefore, notwithstanding the legal requirement, it is essential that operating authorities plan and promote these schemes in good time.
We will also continue to deliver the commitment made by the Minister in January 2005 to grant 100% of eligible costs for priority Water Level Management Plans by Internal Drainage Boards. The 100% grant rate is only available if English Nature (Natural England) confirms in writing that the work is necessary for site management (in the case of Natura 2000 sites) or contributes to bringing the site into favourable condition (for other SSSIs). English Nature (Natural England) will henceforth take the lead in the Water Level Management Plan Advisory Group with continued involvement of ourselves and Defra. The list of priority WLMPs will be maintained by the Water Level Management Plan Advisory Group and only varied with the agreement of Defra.
Please submit to us all variation orders, final accounts and payment of grants for expenditure from 1 April 2006 on current approved schemes. We plan to have a single point of contact for dealing with the above financial matters; we will confirm these arrangements shortly. There will be no change in the use of current Defra forms for these submissions at this point.
In their letter of the 18th January 2006, Defra explained the worrying trend on overspending in 2005/06 and the need for tighter monitoring and control on expenditure for 2006/07 onwards. The overall impact will be stricter examination of variation orders and final accounts. We will carry out the technical analysis and will pay grant for expenditure on schemes after 1 April 2006. Defra will continue to pay final accounts for schemes completed prior to 1 April and in respect of expenditure prior to that date where it has been notified to them and they have made the necessary provisions in their accounts. It is important that Defra are informed of expenditure you incur in the current financial year so that they can make adequate provision; failure to do so may mean that grant cannot be paid on that expenditure.
We intend to update the forward capital programme (the summation of the Medium Term Plans) in June 2006, using the existing Defra forms. The purpose of the exercise will be to show the committed expenditure for 2006/07 and 2007/08 and obtain from Operating Authorities an indication of demand for 2008/09 and 2009/10. We will compile the Land Drainage Act schemes and Defra will do the same for Coast Protection Act schemes. The precise details are yet to be confirmed, including a new prioritisation methodology, but we will of course discuss our proposals with ADA and LGA first before a wider stakeholder consultation.
We welcome this change and are looking forward to working locally with Local Authorities and IDBs under these new arrangements. Please make contact with your local Area Flood Risk Manager as the first step in implementation.
Yours faithfully
[signed]
DAVID ROOKE
Head of Flood Risk Management
Page last
modified: 8 March 2006
Page published: 8 March 2006