Cost of flood schemes almost triples as fewer properties protected

The cost of flood protection schemes has almost tripled in the past decade while fewer properties have been protected, a watchdog has found.

The Scottish Government identified 40 flood schemes in 2015 that would be eligible for funding in an effort to protect homes and businesses during adverse weather at a cost of around £350m.

These schemes would protect 15,520 properties at a cost of £22,639 each.

But according to a report by Audit Scotland, by 2015 just 19 schemes have been completed and eight have been abandoned. These are projected to protect 14,015 properties and cost just over £1bn – around £75,000 per building.

According to the watchdog, funding of £42m annually was agreed for flood protection schemes between 2015-16 and 2025-26, but there was no understanding on whether it would be enough.

“While multi-year funding allocations of £42m a year between 2015/16 and 2025/26 had been agreed, there was no clear understanding of whether this would be enough to cover the final cost of the schemes that were approved,” the report said.

The Scottish Government puts up 80% of the total price tag with the remainder being covered by councils, who are also responsible for cost overruns and ongoing maintenance of the schemes.

Of the eight slated projects which are now no longer going ahead, the Government and local authority body Cosla have spent around £30m.

“The funding mechanism for major flood schemes is not fit for purpose when considering the scale of resources needed,” the report said.

“It does not provide sufficient safeguards to manage cost increases.

“Flood schemes are taking longer to complete than anticipated. Expected costs between 2015 and 2025 have increased from around £350m to over £1bn.

“This is for fewer schemes than originally approved and therefore fewer properties protected. Future funding for flood schemes is highly uncertain.

“Budgets set annually can make it difficult for public bodies and councils to plan adequately and take the most cost-effective approaches.”

Responding to the report, Auditor General Stephen Boyle said: “The Scottish Government and other public bodies must urgently address critical gaps in roles, responsibilities, information and data.

“Failing to do this risks ambitions to build communities that can better withstand and recover from flooding.

‘Whilst there are good examples of the Scottish Government collaborating with councils, communities and other public bodies, this isn’t sufficient given the scale of future risks.

“It is vital that greater certainty and clarity about the funding available for major flood schemes is provided, with costs and impacts managed and measured, and national agreement on collaborating and engaging with communities secured.”

The Scottish Government was contacted for comment.