Newark and Sherwood District Council encouraged by Government pledge to find long term solution for internal drainage board funding and £3million in support for struggling councils

Lobbying from 29 councils, including Newark and Sherwood, has resulted in £3million of government funding and a pledge of a long term solution for costly internal drainage board levies.

Newark and Sherwood District Council joined 28 others to form a Local Government Association Special Interest Group lobbying the government for a change in the way internal drainage boards (IDBs) are funded, aiming for the tab to be picked up nationally rather than the cost falling on local taxpayers.

IDBs are public bodies that manage water levels and work to prevent flooding. The district is covered by the Trent Valley Internal Drainage Board and the Upper Witham Internal Drainage Board, which are both funded by a yearly levy charged to councils.

In the past year Newark and Sherwood District Council’s bill has risen by £269,000, and was branded “unsustainable” by council leader Paul Peacock at a December full council meeting.

On Wednesday, January 24, the government pledged its commitment to implementing a long-term solution to the way internal drainage boards are funded and announced a second year of one-off funding to support struggling authorities.

In response to a written question, the secretary of state for the department for levelling up, housing and communities, MP Michael Gove, stated: “Last year we provided one-off funding to local authorities struggling with internal drainage board levies. We have listened to authorities who continue to face sustained increases in these levies. We will again provide £3 million outside of the settlement to support those experiencing the biggest pressures.

“We will work with the sector and the department for the environment, agriculture and rural affairs to implement a long-term solution.”

It is not yet known which councils are to receive funding, nor what amount.

Addressing the news from Mr Gove, Mr Peacock said: “Together with 28 other councils, we formed a Local Government Association Special Interest Group last year and have been lobbying the government for a change in the way that IDBs are funded. As a group, we wrote to the secretary of state for department for levelling up, homes and communities along with the prime minister, leader of the opposition, chancellor of the exchequer, shadow chancellor of the exchequer and all MPs serving the affected constituencies. Myself and deputy leader Rowan Cozens have been taking our own actions too, with councillor Cozens attending a meeting with ministers at Westminster next week and both of us personally urging our MPs to make representations on behalf of our council-tax payers.

“The work of the IDBs is vitally important in protecting and supporting our communities and the economy, especially given the recent issues of flooding in our district. However, the levies charged to local authorities have now increased to unsustainable levels due to the IDB’s rising utility costs. Until 2013-2014, the costs of IDBs were funded by the government through a Revenue Support Grant but this support decreased year on year and is now almost non-existent.

“The cost to Newark and Sherwood District Council for 2023-2024 is around £950,000, an increase of £269,000, or 39.5%, from the previous year. As one of the 15 most affected councils, we received funding to cover 90% (£239,690) of the increase in costs for the current financial year. While the same offer of £3million of total funding has been repeated for next year, with recipients yet to be confirmed, we still need to find a solution to the on-going annual issue of rising costs which would have to be funded by council tax increases.

“It's encouraging that our campaign seems to have had an impact with the Government pledging to work with affected councils and the department for the environment, agriculture and rural affairs to determine this long-term solution. We will continue to progress our efforts until a resolution is agreed and secured.”

Paul Redgate, chairman of the special interest group said: “The special interest group councils are grateful to the secretary of state for listening and recognising the serious impact the IDB levies are having on our councils. We welcome the commitment to address this long-standing issue and we look forward to progressing conversations further with government.

“As a group of 29 councils all affected in some way by IDB levies, we have been working in partnership to collectively lobby the government for a fairer and more sustainable way to fund the important work of IDBs without impacting on the council’s ability to afford services. We will continue our effort until a formal agreed, long-term resolution is secured.

“There is no doubt the operations of IDBs are vital for our communities in reducing flood risk and maintaining water levels to reduce the impact of flooding. The IDB levy imposed by the government has reached unprecedented levels, leaving these councils in a precarious and unfair position with no choice but to put council tax up and consider cuts to services to fund these increases. The cost is one that SIG councils simply can no longer afford.

“The SIG is also grateful to the government for awarding an additional £3million funding this year to the councils most impacted by the levies. We await confirmation of the funding allocations.”