Grant in Aid from Defra to Environment Agency for Flood Risk Management in 2007-08
From the Minister of State for Climate Change & Environment
Ian Pearson MP
20 December 2006
| To: | Sir John
Harman Chairman Environment Agency |
Dear John
I am writing to confirm the Department’s decisions on the allocation of flood risk management funding for the Agency in 2007-08. David Miliband has already written to you about overall budgets for the Agency.
Last year Elliot Morley set the Agency an indicative planning allocation of £100 million from the shared ‘traditional capital pot’ and I propose to confirm this for 2007-08. For 2008-09 and 2009-10 we are of course in the middle of the Comprehensive Spending Review which means that I cannot give allocations for these two years. I recognise however that the Agency needs to be able to plan the forward programme and I am therefore setting you indicative planning assumptions for these years at the same level as 2007-08.
The Agency’s allocation of Flood Defence Grant in Aid in 2007-08 is £435.7 million divided between £246.7 million DEL Resource and £189 million DEL Capital.
I do not propose to set a Priority Score for 2007-08 or subsequent years because like last year I do not want to prejudice the introduction of Outcome Measures and the amount uncommitted from the ‘traditional shared pot’ is only £9 million. I have decided therefore to fund SMPs, strategy plans, coastal monitoring and other essential studies at a cost of £2.1 million to allow strategic planning for the investment programme to be strengthened. I also intend to allow the scheme at Weston-Super-Mare to start for the following reasons:-
- It reduces the risk of sea flooding to over 3,800 properties.
- It is a well developed scheme which can proceed quickly.
- It demonstrates a joined up approach from government by allowing the Council to make use of regeneration funds which might otherwise be lost.
However we would want to cap the spend on the project to £4 million in 2007/08. This would leave £2.7 million of our budget unallocated. This will be held in reserve and could be used to fund any emergency works or variations in costs of approved schemes which come along next year or other government flood and coastal erosion risk management priorities.
This decision builds on last year's approach and delivers our top priorities for 2007-08. I will look to the Agency to deliver your programme in the most effective and efficient way to deliver the Government’s targets for flood risk management as set out in the Spending Review 2004 Target. I am particularly keen that the Agency works with Defra officials to develop a Long Term Investment Strategy for flood and coastal erosion risk management and that it engages in real efforts to look at alternative models for delivering that Strategy. I appreciate that this will require some resource to set up but feel sure that there are real improvements to be gained here.
As you know we have been working with the Agency to develop a suite of Outcome Measures for flood and coastal erosion risk management and the Department is undertaking a formal consultation on these along with proposals for a prioritisation process to be used in determining allocations for the CSR07 period.
| [signed] | |
| Ian Pearson |
Page last
modified: 22 December 2006
Page published: 22 December 2006