North Yorkshire Council

 

Corporate Director – Environment in consultation with the Chief Finance Officer (sub-delegated to) the Assistant Director – Resources for Environment

 

27 May 2026

 

Funding Application – Leyburn Flood Alleviation Scheme

 

Report of the Assistant Director - Highways and Infrastructure

 

1.0       PURPOSE OF REPORT

 

1.1       To seek approval from the Corporate Director - Environment in consultation with the Chief Finance Officer (sub-delegated to) the Assistant Director – Resources for Environment to submit revised applications to:

i.           Environment Agency Grant in Aid for funding of £415,274, and

ii.        Flood and Coastal Committee Levy for funding of £340,000

 

 

2.0       BACKGROUND

 

2.1       In July 2019, unprecedented rainfall in the west of the county saw devastating flooding impacts. Richmondshire was hardest hit by the events, which saw approximately 238 individual properties internally flooded, bridges providing vital links to some remote communities destroyed, watercourses obstructed by tonnes of debris and several significant landslips impacting on the highway network.

 

2.2       The investigation focussed on Reeth, Arkengarthdale, Leyburn and Bellerby given these were locations which saw the most significant effects, although the resulting reports acknowledged that flooding was experienced elsewhere. Overall, the locations included in the studies were Reeth and Fremington, Arkengarthdale, Bellerby, Leyburn, West Witton, Bainbridge, Hawes, and Gayle, Redmire and Spennithorne.

 

2.3       The Flood Defence Grant in Aid is the central government fund for managing flood risk in England and provides funding for the Environment Agency (EA) flood risk management studies and strategies along with local authority flood risk and coastal management studies and projects.

 

2.4       Annually NYC contributes over £450k to the Yorkshire Regional Flood and Coastal Committee Local Levy fund and are eligible to apply for funding to deliver flood risk projects in the county. 

 

2.5       On 09 August 2024, the Environment Executive Members provided approval to apply for the Environment Agency Grant in Aid funding and the Flood and Coastal Committee Local Levy funding to support the Upper Dales Flood Alleviation Schemes (Appendix A). A breakdown of the funding allocated to each scheme is provided in Table 1 below:

 

 

 

 

 

 

 

 

Table 1 Original approved funding bids agreed by Committee

Project title

NYC

Grant in Aid

Local Levy

P1. Wensleydale

£97,500

£168,483

£58,017

P2. Leyburn

£107,250

£143,910

£88,940

P3. Leyburn & Redmire

£74,750

£82,185

£100,666

P4. Leyburn 3

£100,750

£115,915

£110,035

P5. West Witton & Spennithorne

£47,618

£103,382

£47,618

P6. Reeth

£70,913

£138,637

£70,913

P7. Upper Dales

£106,700

£120,700

£106,700

Total

£650,000

£873,212

£582,889

 

 

 

 

 

 

 

 

 

 

 

 

 

2.6       The Environment Agency undertake an annual programme refresh to update the allocations throughout the six-year programme. This annual refresh usually occurs in April/May each year. The allocations for 2025/26 and 2026/27 were previously approved by a reset programme business case submitted by the EA and approved by HM Treasury in February 2024. The FCRM funding for 2025/26 was agreed through the Spending Review 2024 and the previous settlement revised, the consequence of which was less funding being allocated than originally allocated for 2025/26.

 

2.7       In 2025 Ministerial direction £72million was diverted nationally from the FCERM Investment Programme to support the maintenance of existing Environment Agency assets. Coupled with increasing costs on schemes in construction, the six-year funding programme was curtailed from six to five years with schemes not in construction or having contractual obligations dropped from the programme.

 

2.8       Despite the funding cuts in 2025, the Wensleydale, West Witton & Spennithorne, Upper Dales, and Reeth flood alleviation schemes all secured both Local Levy and Grant in Aid funding and delivery of the projects will be completed by September 2026.

 

2.9       The Leyburn schemes did not receive an allocation of GiA and as such NYC did not pursue Local Levy bids and effectively placed the schemes on hold. This was agreed in the Annual Flood Programme Update paper to the Executive Member meeting in November 2025 (Appendix B).  Uptake of the Leyburn schemes had at the time been low, and whilst every endeavour had and will be made to increase those numbers, delaying the scheme to future years was a low-risk option, as there were no funding implications. It was anticipated funding for Leyburn would be available in 2026/27 but due to the Grant in Aid funding review, Leyburn project remained on hold until the new funding metrics were released.

 

2.10     In October 2025 the DEFRA Announced its new flood funding policy, with guidance on how to apply the policy delayed until 05 March 2026. On 13 April 2026 the Environment Agency published its Allocation and Prioritisation Guidance for schemes to be delivered in 2027/28. The Leyburn Scheme will therefore be eligible once again for GIA and Local Levy funding, although there is no guarantee in which financial year until the Allocations and Prioritisation process has been completed later in 2026/27.

 

3.0       LEYBURN FLOOD ALLEVIATION SCHEME

 

3.1       Progress to date

·                23 Residents have received their initial surveys to date under the Upper Dales Flood Alleviation scheme; these have been placed on hold.

·                It is our intention to deliver the Leyburn scheme as a standalone project.

 

 

3.2       Based on the new funding rules and metrics North Yorkshire is eligible for £415,274 of grant in aid to support the Leyburn Flood Alleviation PFR scheme. We are also eligible for £340k of Local Levy for the PFR scheme. This is an increase on the previously agreed grant application approved in Appendix A and B. NYC’s contribution will remain the same as previously approved.

 

3.2.1    Table 2. Eligible Increase of EA Grant in Aid and Flood and Coastal Committee Levy Funding

 

Funding Source

Original Eligibility 

Revised Eligibility

Difference

GiA

£342,010

£415,274

+£73,264

Local Levy

£299,641

£340,000

+£40,359

NYC

£94,996

£94,996

Nil

Total

£736,647

£850,270

£113,623

 

4.0       ALTERNATIVE OPTIONS CONSIDERED

 

4.1       The proposed option seeks to maximise NYC’s eligibility for funding ensuring we deliver the highest standard or protection and quality workmanship whilst maintaining NYCs previously approved contribution to the scheme.

 

4.2       Alternative options that have been discounted are to continue the scheme without GiA and Local Levy funding, which would put significant pressure on the Flood Risk Management Capital Programme. It would also mean that NYC is pro-actively pursuing funding that it is eligible for and not claiming money already paid through Local Levy to support local communities in North Yorkshire. 

 

5.0       FINANCIAL IMPLICATIONS

 

5.1       The estimated total value of the scheme elements to be delivered by NYC is presently £850k. It is however important to stress that the scheme is essentially a package of works, and this value is an outline estimate, some elements being subject to third party agreement, and is therefore not definitive at this point in time. The risk of project costs exceeding the estimated value can be managed by prioritising on a risk basis and scalability. If the value of the grant or local levy funding is reduced, again projects will be prioritised and scaled down to be managed within the allocation of £95k from NYC.

 

5.2       The expected council contribution towards the flood risk management forward programme for the work in Leyburn is £95k, this is from the £650k allocated to the Upper Dales Flood Alleviation project as per the approved executive report (Appendix A).

 

6.0       LEGAL IMPLICATIONS

 

6.1       There are no legal implications arising from submission of the revised funding bids. Grant terms are not available at the present time but will be reviewed by Legal Services when released, should the bids be successful.  Any contracts entered into in respect of the grant funding and/or NYC’s contribution will be in accordance with the Council’s Procurement and Contract Procedure Rules, and if relevant the Public Contracts Regulations 2015 and/or the Procurement Act 2023.

 

7.0       EQUALITIES IMPLICATIONS

 

7.1       The scheme benefits all those with protected characteristics by reducing the risk of surface water flooding in Leyburn and thereby the associated effects upon businesses, residential properties, the public health of the community living at flood risk and the associated economic growth of the area.  (Appendix C)

 

8.0       CLIMATE CHANGE IMPLICATIONS

 

8.1       Flood mitigation offers positive benefits to resilience to future climate change projections. The proposals are anticipated to have a positive impact in response to climate change. (Appendix D)

 

9.0       REASONS FOR RECOMMENDATION

 

9.1       It is therefore considered appropriate to continue with the scheme as intended, with regular relevant liaison through the engagement channels established as part of the scheme.

 

10.0

RECOMMENDATION

 

10.1

That the Corporate Director - Environment in consultation with the Chief Finance Officer (sub-delegated to) the Assistant Director – Resources for Environment to approve the funding application for the EA Grant in Aid of £415,274 and Flood and Coastal Committee Levy funding bid of £340,000.

 

 

APPENDICES:

Appendix A – Upper Dales Flood Alleviation Scheme Executive Committee Report 09 August 2024

Appendix B – Annual Flood Programme Update October 2024

Appendix C – Equalities assessment

Appendix D – Climate Change Impact Assessment

 

 

Barrie Mason

Assistant Director - Highways and Infrastructure

County Hall

12 May 2026

 

Report Author – Patricia Gourley Flood Risk Management Project Manager

Presenter of Report – Meirion Jones Lead Local Flood Authority Team Leader