South Holland District Council and MP Sir John Hayes raise issue of the drainage board levy with Government ministers

Government ministers heard about the urgent need to reform the funding for drainage boards during a parliamentary event.

South Holland District Council finance chief, Coun Paul Redgate, was part of a delegation which raised the crippling impact of the levies on local government finances during a House of Commons event.

The district council’s cabinet has recently agreed to increase its share of the council tax bill by 3.09% – but leader Coun Nick Worth has warned that that the £268,000 extra income that this brings will be ‘wiped out’ by the costs of the internal drainage boards.

The recent event was jointly hosted by South Holland and the Deepings MP Sir John Hayes along with his South West Norfolk colleague Liz Truss – who has previously held the roles of prime minister and Defra Minister. Civil servants from Defrawere among the people who attended the event.

Coun Redgate had praised the work of the drainage boards but highlighted the huge impact the levy increases are having and how this is leaving several small councils in a financially precarious position. He warned if no long-term solution is secured, councils will have no choice but to cut services residents rely on.

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Speaking after the reception Coun Redgate, who the chairman of Local Government Association Special Interest Group, said: “The urgency for this to be resolved cannot be stressed enough. The levy will keep consuming the money councils have available for services it raises by council tax every year until a fair deal is secured.

“We need to continue to support the critical work of the IDBs, managing water and reducing flood risk. Their operations are vital for the communities the group councils represent. The demand on pumping stations is not going away and will become even greater in time.

“We need Government to review policy and we need this to progress at the pace the Government has set out – in advance of the 25/26 financial settlement.

“The SIG will not stop until a long-term approach is secured. We now look forward to progressing conversations with DEFRA and DLUCH even further following the Parliamentary reception.”

Coun Marianne Overton, Vice Chair of the Local Government Association, spoke about the impact of flooding on rural communities and how the cost of the levy is consuming money councils raise through taxation.

Lord Gary Porter – who has been calling for change to this issue over a number of years while leader of the district council, emphasised the crucial work of the IDBs in managing water levels and food risk but warned without reform, the future impact of the levy could wipe out district councils.

In attendance were: Andrew Mcgill, chief executive of a number of large Internal Drainage Boards in the East of England, Innes Thomson Chief Executive of the Association of Drainage Authorities, Kerry Booth Chief Executive of Rural Services Network, Anglian Water as well as officers and elected members of the SIG Councils.

The reception came following last month’s announcement by MP Michael Gove, Secretary of State for the Department of Levelling Up, Housing and Communities that a long-term solution to IDB funding will be implemented. The Government is also awarding £3m for the next financial year to the most affected authorities.

The way IDBs are funded has progressively impacted councils since 2013 but in the last two years, the increases have reached unprecedented levels. This is following the sharp rise in utility costs and other factors such as wet weather events.

For the Middle Level Commissioners who have 29 smaller IDBs including 24 with electric powered pumping stations, the standing charges have increased by over 500% because of the Targeted Charging Review – which did not consider the bespoke needs and role of IDBs.

Similarly, the standing charge for St Germans Pumping Station in King’s Lynn has increased by an astonishing 1,300%.

The total drainage board bill to councils nationally is £46.5m in 2023/24 – an increase of £7 million from 2022/23.

For Boston Borough Council, the IDB levy increase from 21/22 to 24/25 is £796,000 – an eye-watering 40%.

For East Lindsey District Council, the total levy equates to 65% of the council tax they receive. For 23/24, the council has raised council tax of £321,000 but the IDB increase was £946,000.

In South Holland, the IDB increase from 21/22 to 24/25 is £823,000 – more than 30 per cent.

Innes Thomson, Chief Executive of the Association of Drainage Authorities said: “The event gave the true feeling and full extent of agreement between IDBs and Local Authorities that the anomaly causing the financial strains can only be sorted with an appropriate level of government intervention and I am confident that Ministers have heard that message.

“We now need swift action to resolve the financing anomaly.”

Sir John said: “I know how important Internal Drainage Boards are to South Holland, South Kesteven and places like them, so it’s vital that Government sorts out a long term, sustainable funding solution so that councils such as South Holland District Council are not unfairly shouldering the burden.

“I know that central Government takes this seriously, and accordingly they need to see that the present arrangements are just not fair for my constituents or SHDC. Instead, what’s needed is the renewed approach being backed by more than 20 local authorities affected by IDB levies.”