IDB Funding & Cost Study announced by Defra

by Carol Tidmarsh, Senior Policy Adviser, Rural Flood Risk, Defra

In response to rising financial pressures on internal drainage boards (IDBs) and the beneficiaries of their work, Defra has committed to working closely with the IDB sector and MHCLG to review the current funding model and operational costs. This initiative aims to assess whether changes are needed to ensure the long-term sustainability of IDBs.

Launched in early September, this nationally important research project is scheduled to conclude in July 2026. It is being led by ICF, a consultancy with expertise in economic and financial analysis, particularly in evaluating the costs and benefits of environmental and regulatory policies in the water and land use sector. Supporting ICF is Logika, a consultancy specialising in flood risk management, drainage, and sustainable development, and valuable experience from the water sector.

Project Aims and Objectives

The overarching goal of the project is to conduct a comprehensive review of IDBs’ operations, focusing on financial efficiency, value for money, and the broader benefits they deliver. The research is structured around three core objectives:

1. Funding and Financial Review: To analyse IDB funding mechanisms, operational costs, and financial pressures over the past decade, and explore future funding options.
2. Benefit Evaluation: To assess the economic and social value of IDBs’ work, both locally and nationally.
3. Data Modernisation: To explore how the annual IDB1 Forms can be improved and modernised for better data collection and reporting.

Methodology and Approach

The research will begin with a thorough evidence review, drawing on existing studies and background information. ICF and Logika will analyse data from IDB1 reports and AGARs and conduct a sector-wide survey to fill any gaps.

In-depth interviews with selected IDBs will help develop case studies and enable comparisons with other risk management authorities. The team will also engage a broad range of stakeholders to understand the full scope of IDB services and their impact.

A key focus will be on the equity and sustainability of the current funding model, with suggestions for future improvements. The project will also propose enhancements to the IDB1 data collection process.

Deliverables and Stakeholder Engagement

The project will produce interim reports, a final summary report, and a dissemination event with interested stakeholders. Once the project is complete, Defra and MHCLG will review the findings and determine next steps.

This research is seen as a vital step in understanding the financial realities faced by IDBs and exploring pathways to future sustainability. Supported by ADA, Defra and MHCLG are calling on IDBs and stakeholders to actively participate by sharing insights and experiences that will help shape future policy.

ICF and Logika are committed to maintaining confidentiality and will work closely with ADA, IDBs, and other key stakeholders. ADA, the Environment Agency, NFU, and the LGA Special Interest Group on Special Levies, will be represented on the Project Steering Group.

Welcoming this initiative and commenting on the project, Innes Thomson, ADA’s CEO, said: “This research work is a major opportunity for the IDB sector to show the real value of the work they do for local communities and the environment, and I greatly encourage all IDBs to actively participate in the work. This study will be a significant piece of research to inform government, through which I have every hope the findings will be used to enhance the future role of internal drainage boards”.

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