Philip Hammond

Localism

Councils face flooding costs black hole

Councils may be left tens of millions of pounds out of pocket under proposals to make them responsible for flood defence maintenance

The government’s draft Flood and Water Bill proposes giving local authorities the lead role in managing local flood risk.

However, the government’s claim that the costs to councils of the new role will be balanced by the savings from avoiding flood damage has been dismissed as “unrealistic” by the Local Government Association.

Under the new arrangements, councils will become responsible for maintaining sustainable urban drainage systems (SUDS) – measures that prevent surface water from heavy rainfall causing widespread flood damage.

According to an impact assessment conducted by the Department for Environment, Food & Rural Affairs (Defra), the cost of the new arrangements – the majority of which will be borne by councils - could amount to £72m each year.

The assessment claims the benefits will range from £84m to £172m, a figure the LGA disputes.

“To suggest the leadership role will be cost neutral is extremely unrealistic,” a report to the Local Government Association’s environment board said.

“It is clear local authorities will be taking on significant new burdens, including the need to expand existing teams, set up and administer strategic partnerships and undertake skills and training to meet co-ordination roles.”

SUDS can range from water meadows that are allowed to flood in times of heavy rainfall, to ‘soakaway’ channels or green roofs in urban areas.

The bill also proposes transferring responsibility for private sewers from councils to water companies with an expected saving of £50m each year.

But LGA policy consultant Vanessa Goodchild-Bradley said Defra had refused to provide evidence for how it arrived at the figure, which she believed was based on a report by engineering firm Atkins.

 “We’ve asked for a copy but haven’t been given one. We may submit a Freedom of Information Act request,” she said.

“We can’t find any councils who say they are spending a lot on private sewers and some don’t have any having sold them off.”

A Defra spokesman insisted the Atkins report would be of little use to the LGA on its own.

“It is not the case that Defra has refused to provide evidence on the cost savings of transferring private sewers,” he said. “We have offered to sit down with the LGA and talk them through the methodology so they can better understand it.

“We have produced a detailed impact assessment to accompany the publication of the draft Flood and Water Management Bill that is available on our website.”

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