Comprehensive spending review (CSR) 2007 - flood and coastal erosion risk management allocations
From the Secretary of State
The Rt Hon Hilary Benn MP
4 February 2008
| To: | Sir John
Harman Chairman Environment Agency |
Dear John
I am writing to confirm allocations for Operating Authorities for the period 2008/9 to 2010/11. While the Department has not fully completed its internal business planning round I am aware of the need to provide you and the other Operating Authorities with allocations now in order for you to commence the detailed work necessary to deliver the programme in 2008/09.
As you know the overall fiscal climate has meant that CSR settlements have been challenging with a number of Departments facing flat cash or even a 5% reduction in budgets. Also all Departments have been subject to a 5% real year-on-year reduction in their administration budgets. In the light of this I believe we have demonstrated our continuing commitment to flood and coastal erosion risk management by planning for increased overall government spend of £650/700/800 million over the CSR period. We expect that these funds will enable Operating Authorities to continue to address the many properties which remain at significant risk of flooding or from coastal erosion.
The amounts available for Operating Authorities from within Defra’s Departmental Expenditure Limits are:
| £millions | |||||
| Total | Resource | Capital | |||
| ( | 2007/08 Baseline | 506 | 247 | 259 | ) |
| 2008/09 | 559 | 251 | 308 | ||
| 2009/10 | 592.5 | 258 | 334.5 | ||
| 2010/11 | 679 | 279 | 400 | ||
| CSR 3 Year total | 1,830.5 | 788 | 1,042.5 |
The resource element will form a part of the Agency’s Flood Defence Grant in Aid. In recognition of the roles that have been delegated to the Agency in respect of the capital budget I am asking the Agency to allocate the budget between itself, local authorities and internal drainage boards on the basis of a prioritised Medium Term Capital Programme. I recognise that there may be some reservations from other Operating Authorities about the transparency of this and I therefore ask that there should be a minimum of £110 million allocated over the three year period for coastal projects undertaken by local authorities and a minimum of £40 million allocated for non-main river works by local authorities and internal drainage boards over the same period. The Agency will need to inform the Department of the allocations by 1 March 2008 to enable the correct budgets to be set in Defra’s financial systems.
In arriving at the allocations proposed we have decided for now to retain funding within the Department for the introduction of measures to assist communities in adapting to future risks (£2/8/18 million) and for work which may arise from the recommendations of the review by Sir Michael Pitt (£2/12.5/20 million).
I recognise the aspirations of Operating Authorities for greater certainty of funding and the potential benefits which can arise from such certainty. I am therefore confirming the three year budgets subject to force majeure.
I propose to set the following minimum targets for the capital programme over the three years of the 2007 CSR period for the Outcome Measures which were agreed following public consultation:
| Outcome Measure | Definition | Minimum Target | ||
| OM1 Economic Benefits | Average benefit cost ratio across the capital programme based upon the present value whole life costs and benefits of projects delivering in the CSR07 period. | 5 to1 average with all projects having a benefit cost ratio robustly greater than 1 | ||
| OM2 Households protected | Number of households with improved standard of protection against flooding or coastal erosion risk. | 145,000 households of which 45,000 are at significant or greater probability | ||
| OM3 Deprived households at risk | Number of households for which the probability of flooding is reduced from significant or greater through projects benefiting the most deprived 20% of areas. | 9,000 of the 45,000 households above | ||
| OM4 Nationally important wildlife sites | Hectares of SSSI land where there is a programme of measures in place (agreed with Natural England) to reach target condition by 2010. | 24,000 hectares | ||
| OM5 UK Biodiversity Action Plan habitats | Hectares of priority Biodiversity Action Plan habitat including intertidal created by March 2011. | 800 hectares of which at least 300 hectares should be intertidal |
It is clear to me that, while the targets are challenging, the data currently available indicates they are achievable. I must recognise that there are significant additional amounts of public funds being invested and taxpayers and stakeholders will expect Operating Authorities to deliver the maximum from the programme. I propose that our officials review the targets annually to identify whether there is any scope for further ambition.
In delivering the target of 800 ha for BAP creation, I expect that a minimum of 300 ha of total delivery should be intertidal habitat and that where possible other operators will be encouraged to contribute to these totals through their own operations.
Our officials will need to continue to work together to develop the underlying data requirements and reporting arrangements to monitor delivery against these targets as well as finalising the prioritisation process which will shape the capital programme in the future. I expect this framework to be defined this summer.
I am copying this letter to Sir Simon Milton, Chairman, Local Government Association and Henry Cator, Chairman, Association of Drainage Authorities. I will also make a copy available on the Defra website.
| [signed] | |
| Hilary Benn |
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modified: 4 February 2008
Page published: 4 February 2008