River Itchen flood scheme could be backed by wealth fund

Plans have continued to progress for the River Itchen Flood Alleviation Scheme (RIFAS) under a partnership between the city council and the Environment Agency.

The aim of RIFAS is to reduce the risk of tidal flooding along a 2.2-mile stretch of the west bank of the river, with particular focus on the areas of Northam, St Mary’s and Chapel.

Earlier this year councillors were told the project’s projected cost had risen from £41 million in 2021 to somewhere in the region of £70 million, with an outstanding funding gap.

At an audit committee meeting on Monday, November 11, members heard that officers were in talks with the National Wealth Fund (NWF) about the RIFAS and other projects.

Southampton Water Activities Centre (Image: LDRS)

The fund, which has a broader remit than its predecessor the UK Infrastructure Bank, was launched by chancellor Rachel Reeves in July having been a key pledge in Labour’s manifesto.

For local authorities, the NFW offers low-cost finance to deliver economic infrastructure projects with better borrowing rates than the Public Works Loan Board often used by councils.

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Southampton City Council executive director of enabling services Mel Creighton said the fund had a limited pot of money directly from government to invest, with a focus around climate change-related schemes.

“We are in discussions with the National Wealth Fund about certain projects,” Ms Creighton said.

“We have given them a list of things that we are doing. Things like the River Itchen Flood Alleviation Scheme and we are talking to them about whether they will be interested in funding that.

“There is a significant requirement to demonstrate the business case to them and around what the impact will be, so we have got a number of schemes that we are talking to them about.”

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The RIFAS proposals cover from Mount Pleasant Industrial Estate in the north down to Southampton Water Activities Centre to the south of Itchen Bridge.

The Environment Agency and council agreed the current partnership for the scheme in 2019.

Two years later, councillors committed an investment of £10million, with the Environment Agency expected to fund the rest when the overall cost was believed to be £41million.

At an overview and scrutiny management committee meeting three months ago, members of the local authority’s overview and scrutiny management committee asked for an update report on the project. This is yet to take place.