The first role of any Government is to protect their citizens. Yet the previous Conservative Government left flood defences in their worst condition on record. This is a dereliction of duty.
Economic growth is the No. 1 mission in the Government’s plan for change. Resilience and adaptation to climate change are essential foundations to this mission—better protecting all communities from the risk of flooding increases investor confidence, the viability of businesses, the resilience of critical infrastructure, innovation, and tourism. This is why we are investing a record £2.65 billion over the two years to March 2026.
We are committed to making every pound we invest count, and to ensuring that our flood resilience and coastal erosion investment policy enables new innovative approaches that respond to current challenges and prepare us for the future. Today, the Department has launched a consultation on reforming our approach to investing in flooding and coastal erosion for communities across the country.
We have a bold, strategic vision for the future. Our objectives are for the new approach to be simple, flexible, and strategic—so that we can deliver timely, data-driven interventions that build national resilience. It will have a stronger focus on investing in our existing assets and enabling a broader range of resilience interventions, including natural flood management and property flood resilience measures. It will be informed by a 10-year pipeline of project opportunities based on the Environment Agency’s new national flood risk assessment, which brings together key national and local evidence.
We want to ensure that funding for flood defences is distributed more effectively across the country—including for rural and coastal communities. We are proposing to stop using the current outdated funding formula entirely and replace it with a simple two-step process. The first step determines how much Government funding a project will get. We are proposing to fully fund the first £3 million of all projects and apply a flat rate of 90% Government contribution towards the remaining costs. This approach means that more schemes will see their funding gaps filled. It will make it simpler and faster for all risk management authorities to calculate their funding—benefiting all councils, including poorer councils that have less resource to commit to the application process.
We have also listened to stakeholders who have told us about their difficulties in securing external funding contributions for capital works to existing assets. We are therefore proposing to fully fund the refurbishment of existing flood and coastal erosion risk management projects to reduce these pressures.
The second step will be to prioritise projects for funding. We are seeking views in our consultation on a range of options, including prioritising by value for money; weightings to bolster priority outcomes, such as for deprived communities and natural flood management; and providing incentives for projects to secure additional external funding contributions.
The new approach for flood resilience investment will be launched in time for the start of our new flood investment programme in April 2026. Transitional arrangements will be put in place for existing projects in construction to ensure that all those projects are completed.
The Government are also opening a call for evidence on two wider areas. The first looks at how we can effectively find alternative sources of funding for flood and coastal erosion projects to achieve better outcomes for more stakeholders. The second explores opportunities for English devolution to support flood resilience, including how to deliver more local choice in flood risk management decisions and achieve wider benefits. It also invites views on the potential for mayors to help fund flood projects using mayoral revenue raising powers, on opportunities for improved partnership working and on the potential to devolve funding for local flood risk in the longer term.
We have recognised the challenges that our inherited approach to floods funding presents to communities across the country, including in rural, coastal and poorer council areas. This review of floods funding marks a step change in our approach to flood risk investment. Everyone with an interest in flood risk management—from local floods action groups and individuals to flood risk management authorities and private businesses—is encouraged to share their voice and help shape the future of floods funding.
[HCWS680]