SRA Annual Report 2020-21: Financial Summary
2020-21 Local Partner Funds
Somerset Rivers Authority (SRA) receives annual funding from two sources. Firstly, council tax. Somerset’s local authorities raise money for the SRA through a ‘shadow precept’ (*see below). Secondly, the Parrett and Axe Brue Internal Drainage Boards (IDBs) make contributions. In 2020-21, the SRA received Local Partner Funding from these two sources totalling £2,943,639 (£2,923.639 through the ‘shadow precept’, £20,000 from the two IDBs – £10,000 each).
Using the 2020-21 ‘shadow precept’ and including £451,000 of contingency funds carried forward from the previous year, the SRA Board set a budget for 2020-21 of £3,394,270, with funding for four main strands. Firstly, for an Enhanced Programme of works containing 23 schemes and activities, all designed to advance Somerset’s 20 Year Flood Action Plan. Secondly, for SRA staffing, administration, and overheads. Thirdly, for SRA Development Activities, associated with the future development of the SRA, for example the renewal of the Flood Action Plan, planning for becoming a precepting authority and opportunity-mapping for future SRA projects. Fourthly, for contingency.
* The shadow precept raised for Somerset Rivers Authority (SRA) by Somerset County Council and Somerset’s four district councils is set at 1.25% of 2016-17 council tax rates. It is enabled through an Alternative Notional Amount mechanism approved by a resolution of the House of Commons in February 2016. The SRA’s shadow precept can only be used for funding the work of the SRA. The level of the charge has not increased since 2016-17. It has been part of the council tax base since 2016-17. For more information see page 6.
Spending of Local Partner Funding during 2020-21
Since its launch in January 2015, the SRA has received Local Partner Funding of just over £17 million. So far the Board has approved spending of this Local Partner Funding on 182 schemes, actions and initiatives, combining in total many hundreds of different elements. Most activities are generally delivered within the same financial year. Some require longer-term research, design, planning and implementation, so take longer to complete.
It is important to note that the SRA does not commission works directly. Instead, SRA partners deliver the SRA’s Enhanced Programme of works on behalf of the SRA. Once works are complete, amounts spent are then claimed back from the SRA. The SRA employs a small team to manage the partnership and work on activities related to the ongoing development of the SRA, such as preparing a new Flood Action Plan or improving the grant applications and assessment process. Amounts claimed back by partners plus SRA staffing and SRA development costs represent the SRA’s total spend.
Coronavirus pandemic restrictions affected partners’ delivery of works across the whole of the SRA’s Enhanced Programme in 2020-21, resulting in less being spent during the year than was originally expected. No money was spent on SRA development, as work so far has been done by the SRA team. Work in future will require some specialist support and expenditure on external resources.
The summary below shows all of the Local Partner Funding held by the SRA at the beginning, and then at the end, of the 2020-21 financial year. The figure for funds allocated at the start of the 2020-21 financial year includes the new budget set using 2020-21 funds (£3,394,270) and SRA Local Partner funds carried forward from 2019-20 for ongoing activities and further contingency (£5,160,730).
Local Partner Funding 2020-21 Financial Summary
Total allocated funds at start of 2020-21 financial year: £8,555,000
Total spend in 2020-21: £1,172,000
Total allocated funds carried forward to 2021-22 onwards: £7,383,000
Heart of the South West Local Enterprise Partnership Growth Deal funding
Following the Somerset floods of 2012 and 2013-14, to help with key parts of Somerset’s 20 Year Flood Action Plan, the Government put £13,049,000 through the Heart of the South West Local Enterprise Partnership (HotSWLEP) Growth Deal Fund towards a project known as Somerset Flooding. Specifically, the aim of this funding – channelled since the SRA’s launch in January 2015 through the SRA – was to enable the delivery of larger capital schemes up to March 2021. In October 2020, HotSWLEP agreed to extend the SRA’s funding agreement up to March 2022.
The overarching purpose of the Somerset Flooding project is to reduce the duration, depth, and frequency of flooding. In practice, this means safeguarding houses, commercial premises, communities, and infrastructure, increasing business confidence and protecting agricultural land. The project has five main elements which are listed in the table below.
To complement HotSWLEP’s Growth Deal funding, the Somerset Flooding project has also had to secure significant local match-funding. The project’s total budget is now £42,405,738. Other money has come from SRA Local Partner Funds, Flood Defence Grant in Aid, Triple C, the Environment Agency, Sedgemoor District Council, New Homes Bonus, Community Infrastructure Levy, Wessex Water and the Department for Environment, Food & Rural Affairs (Defra). The Growth Deal money channelled through the SRA has been a crucial component in a complex mosaic of HotSWLEP agreements.
Total spending on the Somerset Flooding project during the 2020-21 financial year was £4,215,819.
Of this total, £2,172,248 came from the SRA’s allocation of HotSWLEP Growth Deal funding.
Financial Statement
During 2020-21 the SRA spent £1,172,000 of its Local Partner Funding and £2,172,248 of its HotSWLEP Growth Deal funding, making a total for the year of £3.344 million, as shown below.
SRA Enabling Additional Funds
To maximise the benefits of its funding for the people of Somerset, the SRA helps to pull in money from external sources for schemes which advance Flood Action Plan ambitions. The table below shows how SRA match funding has been used to lever extra money into Somerset.
