Lowestoft flood barrier work halted over £124m funding gap
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A funding gap of £124m and no immediate prospect of government help has left a council "no alternative" but to abandon work on a flood barrier.
Inflation and "crippling" cost increases in materials and labour have hit the Lowestoft Flood Protection scheme, East Suffolk Council said.
Kay Yule, cabinet member for coastal protection, said the decision to call time was "devastating".
The Environment Agency said it was exploring funding opportunities.
The barrier, which had been priced at £74.6m in 2020, is designed to protect more than 1,500 homes and 800 businesses from risk of flooding.
The town centre experienced widespread flooding in December 2013 due to a combination of high tides and strong winds.
The first phase of the work was completed last year, but the council could not find £20m for the next stage, due to be carried out from January to July.
Discussions had been ongoing for more than a year and the local authority had made the government and Environment Agency aware of the urgency, the council added.
It claims it was told the government could not provide further funding unless the council, where no party has overall control, could put up the £20m itself.
'Incredibly disappointing'
"The business case for the barrier could not be clearer," added Ms Yule, a Liberal Democrat councillor whose party runs East Suffolk in coalition with the Greens and Independents.
"We will continue to remind the government of the necessity and benefits of this scheme.
"However, their inability to meet the clear, critical funding requirements at this time is incredibly disappointing."
She said Lowestoft had been the only UK coastal town with no formal tidal sea defences when the 2013 floods happened.
"Without the scheme, were the same event to occur again, the overall cost of the damage to Lowestoft could reach £168m," added Ms Yule.
The council said £15m had been spent on the project to date and was accounted for with funds that had already been secured.
The total estimated cost of the scheme stands at £199m, of which £74.6m had been pledged. It was originally costed at £24m in 2014.
Conservative Waveney MP Peter Aldous said the government was considering representations from him, the council and the Environment Agency.
"They are doing so against a backdrop where it is clear that the current national flood defence budget is inadequate, even though at £5.2bn it is double what it was previously," he said.
"It is to be hoped that a way forward can be found for work to resume in the near future, and I continue to make the case to government so that this can happen."
'Viable and affordable proposal'
A spokesperson for the Environment Agency said: "We have been made aware that East Suffolk Council are unable to progress with the Lowestoft Tidal Barrier Project due to a partnership funding gap and expected significant contractual costs in the coming months.
"We understand the importance of the Lowestoft Tidal Barrier and the benefits it is expected to bring once complete.
"We have worked with Defra, East Suffolk Council and Peter Aldous to explore and facilitate additional funding opportunities.
"However, we understand that our timeline to do this has not aligned with East Suffolk Council's contractual obligations."
A Defra spokesperson said: "We have been made aware that East Suffolk Council is unable to progress with the proposed Lowestoft Tidal Barrier Project due to cost increases caused by scope changes to the project and inflationary pressures.
"We are investing a record £5.2 billion between 2021-27 to better protect communities from flooding right across the country, including in Lowestoft, and will continue working with the council and other partners to help them develop a viable and affordable proposal."
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