Defra publishes new policy on flood and coastal erosion risk management funding
The Department for Environment, Food and Rural Affairs (Defra) has published its new flood and coastal erosion risk management funding policy, following its June 2025 consultation. The policy sets out how flood and coastal erosion projects will be funded and prioritised going forward. The policy replaces the existing funding formula with new rules that will apply to projects from April 2026, supported by £10.5bn in investment, aimed at protecting nearly 900,000 properties. Under the new rules, prioritised flood projects valued at £3m or less will be eligible for full government funding, while projects exceeding this threshold will receive the first £3m upfront, plus 90% of the remaining costs. At least 20% of future investment over the next decade will be allocated towards protecting the most deprived communities in England. New projects will be prioritised based on value for money, with contributions from partners such as businesses, wildlife groups or farm clusters receiving greater recognition, thereby increasing the chances of projects being approved. The policy also places the refurbishment of existing flood defences on an equal footing with new projects and commits to increased investment in natural flood management initiatives. Defra has also released a summary of consultation responses alongside the new policy.