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Councils hit by increase in levies from Internal Drainage Boards receive one-off funding

Some 15 local authorities severely impacted by the increase in levies from Internal Drainage Boards are to benefit from one-off government grant funding.

Lee Rowley, parliamentary under-secretary for the Department of Levelling Up, Housing and Communities, announced in the House of Commons a further £3m in grant funding for 2023/24 to support the 15 local authorities.

The allocations for each authority are listed in the table below and are based on 2023/24 Internal Drainage Board levy increases.

Allocations of £3m grant funding for increasing Internal Drainage Board levies

The announcement follows the Local Government Finance Settlement statement made on 6 February 2023, Rowley said.

The increase in levies from Internal Drainage Boards is being driven by “the unprecedented rise in energy costs that impact particularly energy intensive services including Internal Drainage Boards”, Rowley stated.

He added: “As this has been an exceptional year for the rise in energy costs, this will be an exceptional one-off payment to help ease this additional financial burden on councils. The government will not provide additional grant to local authorities for these levies on an ongoing basis. Councils and Internal Drainage Boards should continue to take action to deliver efficient services and good value for money for the public.

“The 15 local authorities in scope are those whose Internal Drainage Board levies account for over 3% of their average Core Spending Power over five years.”

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The government has launched a consultation on its proposed business rates reset, potentially leading to a significant redistribution of council funding.

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