Extract from Finance Committee – 1st Report, 2008 (Session 3)
Local Government and Communities Committee
Scottish Government Draft Budget 2008-09
Flood prevention and coast protection
36. In considering the funding for flood prevention and coast protection the Committee noted that this year’s baseline was approximately £42m (provided to local authorities). Officials confirmed (col 257) that in the coming three year period the budget to be allocated to local authorities is £126m, or £42m each year, which represents no increase in funding in the budget. The Scottish Government is retaining £1.7m in each of the next three budget years.
37. Table 2 shows the amounts already committed to flood prevention schemes in the current and future budget years.
Table 2 (col 258)
| Year | Committed budget (£m) | Uncommitted budget (£m) |
| 2007-08 |
32 |
10 |
| 2008-09 |
26 |
16 |
| 2009-10 |
15.4* |
26.6 |
| 2010-11 |
<1 |
41+ |
*This figure was updated following the oral evidence session (see RAE/S3/07/10/14)
38. The amounts already committed represent 80% of the eligible costs identified in tenders for flood schemes already under construction within seven local authorities. The Scottish Government has said (col 257) it will honour all such schemes approved by the previous administration (in addition to schemes that it has itself approved). Uncosted information was also provided
281 about a number of further schemes that local authorities wish to pursue, some of which could be added in, thus increasing the proportion of committed funds. The Cabinet Secretary also confirmed (col 300) that where money allocated to local authorities is unspent, it will remain with local authorities (where it could be reallocated to other priorities) rather than being returned to the Scottish Government.39. The mechanism for distributing uncommitted funding has not yet been agreed but is to be discussed with CoSLA in the near future. In written evidence, it was explained that such funds were expected to be allocated to cover 80% of the estimated cost of confirmed schemes which are under construction; confirmed schemes which are due to go to tender; and schemes submitted by the "Spending Review date" (14 November). Remaining funds in any year would be distributed by reference to each Council’s exposure to flooding risk.
28240. The Committee is unclear about how the reallocation of funding to local government will be calculated given the very uneven distribution of spending need across local authorities, and some members of the committee are concerned that a calculation that will meet this need may not be achievable. Flood management schemes can be extremely expensive and individual authorities’ annual shares of a national budget allocation might not be sufficient to fund the schemes needed in their areas. The Committee has considerable concerns about how large-scale strategic flood management schemes will be funded under these arrangements.
41. Until we know what levels of funding will be allocated to each local authority, it remains unclear how the differing demands of each local authority will be addressed. With so little money being retained by the Scottish Government, it must be questionable whether single outcome agreements are sufficient to ensure a strategic approach is adopted on an issue which does not respect local authority boundaries.
42. We also note that none of the 45 national indicators and targets are specific to the issue of flooding. While we recognise the connection made by the Cabinet Secretary (col 296) with more general targets related to "keeping communities safe" and "tackling climate change", it remains unclear how the effectiveness of spending on flood management is to be measured in the absence of specific targets.
43. On the basis of these concerns and in the light of the major inquiry into flooding the Committee has instituted, the forthcoming introduction of a bill on flooding and coast protection policy and administration and the recent publication of the Pitt Report, the Committee invites the Scottish Government to reconsider making such a fundamental change in funding policy at this time.