Question to the Department for Environment, Food and Rural Affairs:

To ask Her Majesty’s Government what plans they have to attract more private funding into the construction of flood defences; and whether this will include providing a return to investors on their investment in such projects and allowing corporate investors more control over the investments made.

Government changed its funding approach in 2011 to provide space for and encourage private sector and other contributions to Government supported flood and coastal erosion risk management schemes. Private sector contributors benefit from the reduction in flood risk which their investment buys. The return on these investments vary from scheme to scheme depending on the level of protection achieved by the project but private sector contributors can choose how much they invest.

Legislation was introduced in the Finance Bill 2015 to enable companies and unincorporated businesses to receive a tax relief on their contributions to partnership funding for flood and coastal erosion risk management schemes. This is intended to encourage private sector contributions to projects across the country through partnership funding, allowing more schemes to go ahead.