Flood and coastal erosion risk management annual report · first published 27 November 2012
This is the Environment Agency's statutory annual report on flood and coastal erosion risk management (FCERM) in England for April 2025 to March 2026. It is primarily a performance and accountability document — not a procurement policy — but it contains facts directly relevant to small businesses that supply, contract to, or seek funding from the flood defence sector. The report confirms that a new £10.5 billion investment programme runs to 2036, with over £1.4 billion committed in 2026–27 alone and more than 600 flood schemes covering every region of England. A reformed partnership funding policy, in force from April 2026, now fully funds projects up to £3 million and requires only a 10% contribution on costs above that — removing a significant barrier that previously deterred smaller, local schemes. Natural flood management (NFM) funding is now open to non-governmental organisations, charities and landowners, not just public Risk Management Authorities (RMAs). The report also flags strong demand for low-carbon construction materials and integrated property flood resilience (PFR) surveys, both areas where specialist SMEs can position themselves. The rules bind the Environment Agency and public RMAs in England; wider local-authority and private-sector supply chains are affected indirectly.
WHO THIS APPLIES TO
THE ENKII VIEW
The shift to 100% government funding for FCERM projects up to £3 million from April 2026 is the most significant structural change for SME suppliers: smaller, local schemes that previously struggled to attract partnership contributions can now proceed, expanding the pipeline of work available to regional contractors and consultants. The explicit opening of NFM funding to charities, environmental NGOs and landowners — and the push for PFR supplier frameworks and a new PFR test centre — signals growing market demand for specialist small firms in nature-based solutions and property resilience products. The report's emphasis on low-carbon construction (cement replacement, HVO fuel, electric plant) and the target of 10% efficiency savings means buyers will increasingly score on carbon and efficiency credentials, rewarding firms that can demonstrate these now.
1. Monitor the £1.4 billion 2026–27 pipeline and target one of the 600+ flood schemes in your region: find contract notices on Find a Tender Service and Contracts Finder, and engage your regional Environment Agency area team or RFCC now to understand local priorities before notices go live.
SMEs in FCERM construction, maintenance and consultancy — all sizes, all regions of England — The report confirms £1.4 billion across 600+ schemes in 2026–27 covering every English region — the first year of the largest-ever flood investment programme. Early engagement improves bid quality.
2. When preparing bids or approaching local RMAs or RFCCs, make the case for projects sized at or under £3 million: under the new April 2026 funding policy these are 100% government-funded, removing the partnership-funding gap that previously killed smaller schemes.
SMEs and micro-businesses bidding for local FCERM schemes under £3 million — The new policy states projects are 'eligible for 100% for the first £3 million', eliminating the match-funding barrier for sub-£3m work from April 2026.
3. Apply directly for NFM funding under the new programme — you no longer need to partner with a public Risk Management Authority to access it. Prepare project proposals that can demonstrate measurable flood-risk-reduction outcomes to strengthen your application.
Environmental consultancies, land managers, charities and NGOs working on natural flood management — The report explicitly states NFM funding 'is now also available to non-RMAs, including: non-governmental environmental organisations; charities; landowners' — a new eligibility route confirmed in October 2025.
4. Demonstrate low-carbon credentials in every tender: document your use of cement replacement (target >40%), hydrotreated vegetable oil (HVO) fuel, electric/hydrogen plant, and your whole-life carbon assessment capability — these are now minimum buyer expectations.
FCERM construction contractors and material suppliers in the Environment Agency supply chain — The report states the EA sets 'minimum requirements for low carbon construction materials' and requires 'whole-life carbon assessments within business cases for all new schemes'; cement replacement is forecast at 68% and HVO at 53% across the programme.
5. Register on or bid to join the PFR supplier framework, and explore the FloodReady action plan (published October 2025) for specific industry actions: position your firm ahead of the growing pipeline by seeking accreditation via CIWEM's Be Flood Ready Community of Practice.
SMEs offering property flood resilience (PFR) products, surveys or installation services — The report confirms a 'PFR supplier framework' has been created and the FloodReady report sets out '22 recommendations… for industry stakeholders… to accelerate practical and affordable flood resilience measures for homes and businesses.'
6. Track the £18 million advanced adaptation strand of the Coastal Adaptation Pilots and the £12 million RFCC-allocated smaller-project fund: contact your local RFCC to understand timelines and criteria, and prepare proposals covering property purchases, early-warning systems or coastal tourism infrastructure — all named eligible activities.
SMEs targeting coastal adaptation work in East Riding of Yorkshire, Norfolk or Suffolk — The report confirms '£30 million for the 3-year Coastal Adaptation Pilots initiative' with specific eligible activities including 'moving community buildings away from at-risk areas; testing early warning systems; improving beach access and coastal tourism infrastructure.'
7. Build and document efficiency delivery into your project approach: quantify savings from value engineering, repeatable design, or modern construction methods and include these figures in bid narratives — the EA targets 10% efficiencies across the programme and reinvests them.
All FCERM suppliers seeking to win and retain framework places — The report states 'We aim to achieve 10% efficiencies in the current investment programme' achieved through 'efficient preparation and planning, contract implementation and utilising modern methods of construction.'
Every rule below quotes the official document verbatim.
From April 2026, all new FCERM projects are eligible for 100% government funding for the first £3 million of cost, with only a minimum 10% partnership contribution required on costs above £3 million. (All new FCERM projects in England from April 2026; does not apply to projects already in construction.)
“all new projects will: be eligible for 100% for the first £3 million; require at least 10% partnership funding contribution on costs above £3million”
The new FCERM funding policy came into effect from April 2026 and does not apply to projects already in construction. (All new FCERM projects in England.)
“This policy came into effect from April 2026. It does not apply to projects that are already in construction.”
The new NFM (natural flood management) funding is available to non-RMA organisations including non-governmental environmental organisations, charities and landowners — not just public Risk Management Authorities. (NFM funding within the £10.5 billion FCERM investment programme, England.)
“This funding is now also available to non-RMAs, including: non-governmental environmental organisations; charities; landowners”
The new flood investment programme totals at least £10.5 billion through to 2036 — the largest in history — and will benefit 840,000 properties. (FCERM investment programme, England, October 2025 announcement, running to 2036.)
“government announced at least £10.5 billion investment until 2036 to construct new flood and coastal erosion schemes and repair existing defences. This is the biggest floods investment programme in history. It will benefit 840,000 properties”
Over £1.4 billion will be invested in flood and coastal defences in 2026–27 alone, covering more than 600 flood schemes across every region of England. (FCERM capital investment, England, April 2026 to March 2027.)
“government announced that £1.4 billion will be spent on flood and coastal defences between April 2026 and March 2027, the first year of the new flood investment programme. This includes more than 600 flood schemes covering every region of England.”
At least 20% of future FCERM investment will be set aside to help protect the most deprived communities in England over the next 10 years. (£10.5 billion FCERM investment programme, England, 2026–2036.)
“At least 20% of future investment will also be set aside to help protect the most deprived communities in England over the next 10 years.”
Government will invest at least £300 million in natural flood management (NFM) over 10 years — the highest NFM figure ever committed in the flood investment programme. (NFM strand of the £10.5 billion FCERM investment programme, England, 2026–2036.)
“Government will also invest at least £300 million in NFM over 10 years – the highest figure to date in the flood investment programme.”
The Environment Agency aims to achieve 10% efficiency savings across the investment programme, to be reinvested; £46 million was achieved in 2025–26 through planning, contracting and modern construction methods. (FCERM investment programme, Environment Agency and its supply chain, England.)
“We aim to achieve 10% efficiencies in the current investment programme. These efficiencies will then be reinvested in our investment programme. Between April 2025 and March 2026, we achieved £46 million in efficiency savings.”
80% of FCERM construction carbon emissions come from soil, steel, concrete and stone; the Environment Agency sets minimum requirements for low-carbon construction materials and requires whole-life carbon assessments in business cases for all new schemes. (All new FCERM schemes procured by the Environment Agency, England.)
“setting minimum requirements for low carbon construction materials, such as low carbon concrete and steel; requiring whole-life carbon assessments within business cases for all new schemes”
Carbon intensity of FCERM activities has fallen by more than 50% since 2021–22, from 4.17 tCO₂e per £10k spend to 2.00 tCO₂e per £10k spend in 2025–26. (FCERM capital programme, Environment Agency, England, 2021–2026.)
“Carbon intensity has reduced from 4.17 tCO₂e per £10k spend in 2021 to 2022 to 2.00 tCO₂e per £10k spend in 2025 to 2026. This is a reduction of more than 50% over 5 years.”
A new property flood resilience (PFR) supplier framework and a pioneering PFR test centre have been created, signalling a structured and growing procurement market for PFR products and services. (PFR supply market, England.)
“created a PFR supplier framework; developed a new PFR testing facility at the University of Hull in partnership with Flood Re”
The FloodReady report (October 2025) sets out 22 recommendations across 6 themes to grow the PFR market, including actions for industry stakeholders to accelerate practical and affordable flood resilience measures for homes and businesses. (PFR industry and related supply chains, England.)
“The report sets out 22 recommendations and a large number of supporting actions across 6 themes… It includes actions for industry stakeholders, with government support, to accelerate practical and affordable flood resilience measures for homes and businesses.”
£30 million has been announced for a 3-year Coastal Adaptation Pilots initiative, of which up to £18 million funds advanced adaptation actions and £12 million is available via Regional Flood and Coastal Committees (RFCCs) for smaller-scale projects. (Coastal adaptation pilots in East Riding of Yorkshire, Norfolk and Suffolk; RFCC-selected smaller projects, England.)
“government announced £30 million for the 3-year Coastal Adaptation Pilots initiative. Up to £18 million of this will fund advanced adaptation actions… An additional £12 million will also be made available to RFCCs to select projects that can provide smaller scale adaptation readiness actions.”
Between April 2025 and March 2026, 144 FCERM projects were completed, protecting 34,355 properties, spanning sea/tidal (28 projects), river (54 projects), surface water (49 projects) and coastal erosion (7 projects) work. (FCERM capital programme, England, 2025–26.)
“we worked with other RMAs to better protect 34,355 properties from flooding and coastal erosion through 144 projects”
This briefing is enkii's interpretation of the official document — the official text always governs.
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