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

To ask Her Majesty’s Government what assessment they have made of what is a fair form of contract between private and public sectors in flood defence funding.

The Environment Agency has published guidance[1] that describes the principles that Risk Management Authorities should follow when implementing the Government’s partnership funding policy[2] and promoting flood and coastal risk management projects. This includes securing contributions from beneficiaries for flood risk management schemes.

All contributions are voluntary. Most private contributions are associated with the direct reduction of risk to the business location alone. However in some situations, where businesses are within an at-risk community, their contributions may also be used to protect the adjacent community. Where this is the case, the Government offers tax incentives in support.

The terms on which contributions are secured is a matter for each Risk Management Authority. The guidance describes the key elements these terms should consider. The Environment Agency has standard terms template agreements for use when securing contributions from the public and private sectors towards its projects.

[1] Principles for implementing flood and coastal resilience funding partnerships (Environment Agency 2012)

[2] ‘Flood and coastal resilience partnership funding’ introductory guide (Defra 2011)