The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Dr Thérèse Coffey)
I congratulate my hon. Friend the Member for South East Cornwall (Mrs Murray) on securing this important debate. In fact, this is the first time that I have spoken to her in this House since I had the privilege of attending her wonderful marriage to the wonderful Bob Davidson less than a month ago. May I—on behalf of many people, I am sure—wish them both many years of happiness to come?
My hon. Friend has been a passionate advocate for the Looe flood protection scheme and generally for growth in Cornwall and the south-west. We have discussed this issue before, when she also brought along people from Cornwall Council and commissioners from Looe harbour, and I welcome the opportunity to do so again. I take this opportunity to recognise the work that she has been doing to raise awareness of the flooding experienced by people and businesses in Looe. I commend her for taking a long-term view to managing flood risk and recognising how flood risk management infrastructure can contribute to the future prosperity of the people she represents.
I am mindful of my hon. Friend the Member for Strangford (Jim Shannon) raising this issue again on behalf of his constituents. Although he will accept that this is a devolved matter, the amount of money that this Government have put into protecting flood defences around the country is reflected in the Barnett formula. I hope that he will continue to put the case on behalf of his constituents.
I am also mindful of the challenges faced by the town in that it regularly experiences flooding. The town centre, harbour and key transport and community infrastructure are all located within the main flood zone. As a fellow MP for a coastal community, I recognise the national importance of our coast and the challenges that these areas face. Flood and coastal risk management is a high priority for the Government. I know very well the impacts that flooding can have on lives and livelihoods. Compelling evidence suggests that climate change may lead to increases in sea levels by the middle of this century. Both present significant risks, so we are putting in place robust, long-term national strategies to protect our coastal communities.
I am aware that the Environment Agency has identified a potential option for a flood risk management scheme in Looe, using demountable defences, at a cost of approximately £10 million. My hon. Friend referred to schemes costing £40 million, and we need to consider those carefully. I am also aware that the local community prefers a wider socioeconomic regeneration scheme, to which she referred extensively, that includes a tidal barrier to manage flood risk. Cornwall Council is now leading on the delivery of this preferred option, with support from the Environment Agency that she generously recognises. The preferred scheme to which she refers consists of five elements that would all need to be delivered to meet the strategic objectives of the scheme. These include tidal barriers, beach protections and a pier extension. In terms of the flood defence grant-in-aid funding, my hon. Friend recognised that on today’s formula that scheme would qualify for only £3.7 million, which would not fully fund the proposal. However, I commend her and Cornwall Council, which is using £2.3 million of its economic development match funding to deliver the detailed design work for the scheme. The designs will be used to attract funding from wider sources. As she points out, she hopes, rightly, to continue to make the case on why this may attract further central Government funding as well.
As well as protecting communities, flood risk management systems create improved confidence in a local economy, encouraging growth and supporting environmental improvements. It is vital that we take a long-term view of the environment, as outlined in our 25-year environment plan. I commend Cornwall Council, Looe Harbour Commissioners and the community for taking a wider regeneration approach that has a high level of public and business support. While the proposal would reduce the risk of flooding, there are further benefits in enabling development, generating growth and improving the bathing water quality. The improvement of the travel network and cycle networks would also contribute to the economic prosperity of the region and further encourage tourism. My hon. Friend talked about a spoke in a wheel. I wish it were as cheap as a penny- farthing, but she will recognise, as will the hon. Member for Strangford, that that is not necessarily the case.
These benefits tie in with a number of wider Government aims. I encourage my hon. Friend and the local partners to continue their efforts to identify further funding from the full range of available sources. The partnership funding policy that this Government introduced clarifies the level of investment that communities can expect from the Government so that it is clear what levels of partnership funding they will need from other sources to allow projects to proceed. The overall call on the grant-in-aid funding exceeds the total amount of funding available, so we need to prioritise to optimise the overall outcomes from the investment of taxpayers’ money. The current formula takes into account the impacts of flooding, including the frequency, severity and depth of potential floods and the impacts on health. It is people-centred in the sense that it weighs the Government support more towards households, and hence the impacts on people, than on other economic benefits, including the impacts on businesses. As it stands, there are no plans to change the current funding formula before 2021, though I am very conscious of the demands on, in particular, coastal communities and more sparsely populated communities. I am therefore considering what we can do within the next spending review and the funding formula change to consider the impact on local employers and, in turn, on local communities.
Overall, the Government are investing £2.6 billion to better protect the country from flooding, and this, through partnership funding, will attract more than £600 million of additional investment. That will fund well over 1,000 flood defence schemes, which will better protect 300,000 homes by 2021 and is projected to save the economy more than £30 billion in avoided damage. As well as capital for new flood defences, between 2015 and 2020 we will spend more than £1 billion on the maintenance of flood defence assets.
Partnership funding, to which my hon. Friend referred, can be secured from a range of sources, including local beneficiaries, partners and growth funds. Early indications suggest that up to 25% more schemes will go ahead in the coming years than if project costs were met by the Government alone. As my hon. Friend will recognise, it is not possible to deliver every scheme in the current programme that would reduce flood risk, and it is my duty as Floods Minister to take a national perspective on flood risk management. However, I assure her that I am fully alive to the issues she has raised regarding the businesses and residents of Looe.
The Environment Agency will continue to support and work with local partners on a positive solution for Looe, and I encourage the council and partners in their bids to secure additional funding. I very much look forward to seeing how the scheme develops, including its potential to develop local tourism in an environmentally sustainable way.
I thank my hon. Friend again for raising this issue. The Government, the Environment Agency and our flood defence delivery partners entirely understand the challenges present in Looe, and we will continue to support Cornwall Council and its partners in developing the flood scheme. I commend the long-term view to managing the flood risk in the town and considering wider socioeconomic regeneration. I encourage people to continue to work together, with my hon. Friend’s leadership, to identify a solution that meets Looe’s long-term needs.
As I said, I am looking at the funding arrangements ahead of the next capital programme, and we are working closely with the Treasury to consider future investment needs and the Government’s role in supporting the resilience of communities. I take on board what my hon. Friend has said. While I recognise that I have not been able to sign a cheque to guarantee the future of these flood defences, she continues to make me aware of what matters to our coastal communities, and we will continue to have those discussions.
Question put and agreed to.