Question to the Department for Environment, Food and Rural Affairs:

To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment she has made of how her Department's proposed funding reforms will impact coastal communities with high proportions of (a) small businesses, (b) seasonal tourism employment, and (c) non-standard housing such as holiday chalets.

On 14 October 2025, following consultation, the Government announced major changes to its flood and coastal erosion funding policy. The reforms will make it quicker and easier to deliver flood defences by simplifying our funding rules, and optimising funding between building new flood projects and maintaining existing defences.

Under the new rules, projects will be prioritised by their benefit-to-cost ratios to drive value for money. Projects are developed in line with HM Treasury Green Book guidance and FCERM Appraisal Guidance and capture a wide range of benefits including those related to private properties (including holiday chalets with a fixed address), businesses, heritage, environment, recreation, and tourism. All schemes must achieve a benefit cost ratio of greater than one to receive Defra grant in aid.

The new rules give equal weighting to different types of benefits, which will help coastal areas where under the old rules, benefits such as those from recreation attracted lower weightings.

The list of projects to receive Government funding will be agreed in the usual way, on an annual basis, through the Environment Agency’s annual refresh process, with local representation.