COUNTY COUNCIL - CABINET/LEADER - 16 MAY 2002

FLOOD AND COASTAL DEFENCE FUNDING REVIEW

1. The Cabinet has commented in detail on behalf of the County Council on a consultation paper from the Department for Environment, Food and Rural Affairs (DEFRA) on a review commissioned by the Government of flood and coastal defence funding mechanisms.

2. Currently, operational responsibility for flood and coastal defences is shared between the Environment Agency, internal drainage boards (in areas of special drainage needs, but excluding Hampshire) and local authorities, with a complex array of funding sources. Local authorities' own direct revenue spending and flood defence are financed from general revenues.

3. Whilst the consultation paper concludes that Central Government funding should continue to be the primary source of funding for existing flood and coastal defence commitments, it considers that there is a strong case for examining possible new funding sources to help meet future investment pressures. There is a suggestion that these sources should be derived at least in part from the areas affected. In addition, whilst concluding that a local input into the decision-making process and local accountability should be retained, the consultation paper proposes a broad based regional model for the organisation, strategic planning and funding of flood defence. This would mean that the Government would be responsible for the establishment of policy and the specification of required outcomes, provision and allocation of funding whilst newly formed regional customer bodies would become responsible for the provision of flood defence and coast protection in their areas, defined on a river catchment area basis. The consultation paper suggests that these bodies might comprise representatives from the local authorities responsible for flood defence and coast protection and/or any relevant regional body under a reformed regional infrastructure or devolved government, and would contract with the operating authority for the flood defence service.

4. Whilst the Cabinet supports the principle of attempting to simplify the current complex arrangements, it is concerned that the consultation proposals might result in direct funding of the Environment Agency's flood defence services being achieved by transferring resources away from local government based on current spending levels, (some of which is supported entirely by the council tax) rather than on the basis of spending levels recognised in the Standard Spending Assessment. This would be a repetition of the circumstances surrounding the recent Sixth Form and National Care Standards Commission transfers and would leave council tax payers solely financing even more spending than currently on remaining local authority services. In addition it was also concerned that the new regional customer bodies could be more remote and therefore less democratically accountable than the current flood defence committees, which would disappear under the new arrangements.

5. The above constitutes the broad thrust of the Cabinet's response on behalf of the Council, but a copy of the detailed submission is available from the County Treasurer.

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