Funding Mechanism for Internal Drainage Boards SIG - annual report to LGA Board 2025

• Lead Member: Councillor Paul Redgate (Deputy Leader, South Holland DC)
• Lead Officers:
• Michelle Drewery, Deputy Chief Executive & Section 151 Officer (Borough Council of King’s Lynn and West Norfolk)
• James Gilbert (Assistant Director – Corporate)
• Rebecca Cooke (Academy & Talent Lead) at the South & East Lincolnshire Councils Partnership
• Email:
• Technical Lead: [email protected]
• James Gilbert: [email protected]
• Rebecca Cooke: [email protected]
• Address: Priory Road Offices, Spalding, Lincolnshire, PE11 2XE
• Telephone: N/A
• Website: N/A

Please note that only those councils in LGA membership are permitted to be join a LGA Special Interest Groups

• Ashford Borough Council
• Bassetlaw District Council
• Bedford Borough Council
• Boston Borough Council
• Breckland District Council
• Central Bedfordshire Council
• City of Doncaster Council
• City of Lincoln Council
• City of York Council
• Dover District Council
• East Cambridgeshire District Council
• East Lindsey District Council
• Fenland District Council
• Folkestone and Hythe District Council
• Gloucester City Council
• Great Yarmouth Borough Council
• Herefordshire Council
• Huntingdonshire District Council
• Borough Council of King’s Lynn & West Norfolk
• Lincolnshire County Council
• Maidstone Borough Council
• Newark & Sherwood District Council
• North County Council
• North Kesteven District Council
• North Lincolnshire Council
• North Norfolk District Council
• North Yorkshire Council
• Rother District Council
• Rushcliffe Borough Council
• Sevenoaks District Council
• Somerset Council
• South Holland District Council
• South Kesteven District Council
• Stroud District Council
• Tonbridge and Malling Borough Council
• Swale Borough Council
• Wakefield Metropolitan District Council
• West Lindsey District Council
• Westmorland and Furness Council
• West Suffolk Council

The Internal Drainage Boards (IDB) Special Interest Group is a group of 40 Councils with the shared interest of seeking a revised approach from Government to the funding mechanism for IDBs which removes the need for direct Council subsidisation.

This is in recognition of the significant increases in the special levy (£38.947m in 2022/23 to £52.375m in 2025/26) which disproportionately impacts a relatively small number of Councils, placing them at significant financial disadvantage which is making them financially precarious.

The SIG contributes to a core priority of the LGA (promoting, improving, and supporting local government) through the connection to the theme of a ‘sustainable financial future’.

This is through the work of the SIG to highlight the Special Levy as a cost pressure for councils and drawing out the impacts of this pressure to Central Government. In addition, the SIG is driving the work to seek a long-term solution to support the financial sustainability of affected councils.

The key outcomes for the SIG this year:

• Secured a £3m to £5m uplift in funding in the Local Government Finance Settlement for 2025/26. This followed a meeting and wider lobbying of the Minister for Local Government with support from MPs and the District Councils’ Network (DCN).
• Developed a closer relationship with IDBs, resulting in earlier information sharing by IDBs about levy increases in some areas.
• Secured the support of MPs and Peers who submitted written and oral questions to raise the IDB issue in Parliament.
• With the DCN, secured high profile media coverage for the issue with Sky, The Guardian, and The Times*.
• Increased Membership to 40 impacted Councils.
• Delivered a further event in Parliament (8^th Oct) to target newly elected MPs.
• Met regularly with MHCLG colleagues and established a positive working relationship on this issue.
• Provided bespoke modelling for Boston BC, East Lindsey DC & South Holland DC to MHCLG to demonstrate the issue for the sector as the Levy has been pushed onto Councils to fund as Revenue Support Grant has eroded.
• Discussed the issue with the Shadow Secretary of State at DEFRA who supported our call for change and asked MPs with impacted Councils to support our work by lobbying Government.
• Attended the DCN 50-years of District Councils celebration event, with a presence focused on highlighting the IDB issue and discussed it with the Minister for Local Government and Baroness Taylor.
• Submitted evidence to the Environmental Audit Committee inquiry into flood resilience in England.
• Engaged with George Freeman MP on the work he is leading to prepare a Flooding Bill.
• Highland Water Contributions (HWC) is an emerging issue for the SIG. The Environment Agency has seen increases in its operational costs along with a reduction in Government funding allocations. As a result, HWC has been unable to keep pace with IDB costs increase. In 2024/25, the EA was only able to pay 80% of its claims. Whilst this shortfall is currently being addressed by the Regional Flood & Coastal Committee, this presents a concern for future years and could see further increase to Council IDB levies. This matter has been raised with MHCLG to demonstrate the pressure to Councils is only going to increase further.
• The SIG’s focus remains on securing a long-term funding solution from Government and in the meantime seeking to secure funding support that is comparable to the pressure Councils have faced in Special Levy increases since 2022/23 – circa £13.4m.

*media coverage

• The Guardian: Cost of fighting flooding is soaking up English councils’ cash, ministers warned
• Sky News: High-risk flood areas face cuts to key council services as flood defence costs spike
• Telegraph: Council tax could rise in high-risk flood areas, local authorities warn

NB: Christine Marshall was the technical lead for this SIG but this has now changed to Michelle Drewery.