Current flood and coastal erosion risk management

Funding sources and their allocation.


Local authorities

Income source

 To fund

Flood and coastal erosion risk management (FCERM) revenue support grant (RSG) and related council tax from DCLG and local authorities

From April 2013 revenue support grant (formula grant) will be replaced by the business rates retention system.

  • Local levy (raised by regional flood defence committees (RFDCS) for regional flood risk management priorities)
  • LLFA duties under the FWMA
  • Maintenance of ordinary watercourses and related assets
  • Maintenance of coastal erosion mitigation measures
  • Special levy (raised by IDBs for drainage and water level management)

Local authorities can also receive capital grants for selected bids through Flood and Coastal Resilience Partnership funding administered by the EA.

From 2011/2012 to 2014/2015, Defra will directly fund lead local flood authorities through local support grant (LSSG). Values will total £21 million in 2011/2012, then £36 million a year up to and including 2014/2015. LSSG is an itemised grant so each local authority knows how much has been provided. Sums are not ringfenced and therefore bids will need to be made to secure the funding for the purpose intended. Amounts to be received by each authority can be found on the Defra website. Funding beyond 2014/2015 will be decided as part of the next Government spending review.

As part of the Flood and Water Management Act, funding settlement form local authorities, an extra £2.7 million a year is available within formula grant to allow the RFCC levy to rise by 10 per cent, plus £3 million a year until 2016/17 for local resilience forums to prepare reservoir emergency plans.

Environment Agency

Income source

 To fund

Flood defence grant-in-aid (FDGiA) from Defra

Capital grants (operating authorities)

  • EA flood risk management studies, strategies and projects
  • Local authority flood risk management and coastal erosion management studies, strategies and projects
  • IDB land drainage and flood risk management studies, strategies and projects

Under Partnership funding, funding levels for flood and coastal defence schemes will relate directly to the number of households protected, the damages being prevented, plus the other benefits a scheme would deliver. for the first time, grants for surface water management and property-level protection will be available alongside funding for other risks and approaches.