14. What is the partnership funding calculator and how is funding set by central government?
Prior to the Partnership Funding calculator (PF), central government funding was calculated via an estimation of the predicted damages (caused by flooding/ coastal erosion) vs preventative cost, with high damage to cost ratios being at the top of the list for central government money.
The PF calculator was brought in to address some of the issues with a simple damages to cost ratio in alignment with government policy.
These policies are
- to prioritise protecting residential properties over commercial and industrial premises
- to ensure less well-off areas receive proportionally more funding
- to encourage private funding for flood schemes to deliver better value for the tax payer
- to encourage environmental improvements as part of any works
The government has a target of reducing flood risk to 300,000 homes across the UK, and in Sidmouth central government will contribute 20p for every £1 of predicted damages for residential properties with reduced flood or erosion risk resulting from a scheme. This is where the majority of central government funding is found.
To try and encourage contributions outside of central government, all predicted none residential damages caused by flooding and erosion are contributed at 5.56p for every £1 of predicted damage.
The PF calculator gives a percentage funded score from central government, with the remaining funding value to be found by contributions from others. It should be noted that a scheme must be 100% funded to proceed, otherwise no central government money is released.
We are looking at maximising money available from central government. The residential properties at risk are an easy and static number, however non-residential damages can vary. We are looking at ensuring all non-residential damages have been included and costs are up to date, however any increase in non-residential damages only offers a small contribution of 5.56p per £1 from central government, so adds very little to any potential additional contribution.