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July 2024

Summer Update including Economics Update

Coastal Partners recently instructed AECOM to undertake a review and re-assessment of the Langstone Scheme’s Economics and Benefit values. The review took place at the end of the detailed design stage to support the planning application for the project and any funding bids required to close the funding gap for construction of the Langstone coastal defence scheme.  

The original appraisal was made in 2019 with an update to the economics made in 2021, which supported the submission of the outline business case.

This July 2024 update uses the most recent guidance (the latest Multi-Coloured Manual) from 2023. 

Click here to see the full report, or download it from the blue box on the right of this page.

Why assess the benefits?

The business case for the scheme is based on a Benefit Cost Ratio (BCR) which compares quantifiable value of the benefits and cost of the scheme proposals and generates a score (the benefit cost ratio or BCR). Central government funding seeks a minimum of £1 of benefits for each £1 of their investment. An improved BCR equates to increased eligibility for FDGiA under the current national funding rules. 

The costs have been continually reviewed throughout detailed design using an independent cost consultant, however, these were being compared against outdated benefits, therefore, it was important these were updated to enable comparison. 

Delivery of the Langstone coastal defence scheme assumes that damages from the ‘Do Nothing’ scenario are avoided. These damages are split into two categories:

1. National damages/benefits – those associated with national losses and comprise physical damages to property and infrastructure and a range of wider economic impacts that are outlined in the Multi-Coloured Manual, such as vehicle damages, intangibles, mental health damages and loss of life. These are the benefits that are reported to National Government for their BCR.
2. Regional and Local damages/benefits - including benefits to the public realm enhancements, cycle path improvements and the historic environment. These benefits considered as part of this assessment are not eligible to be included when applying for Environment Agency sources as they represent local/regional level financial impacts that can theoretically be displaced to other parts of the country when considered on a national level. The impacts considered in this part of the assessment are important for the Council at a local level and can be used by the project team as an evidence base to help support funding discussions with potential partners to raise awareness of the broader risks associated with flooding and erosion. 

What did the update show?

• The update has led to an increase in the national and local economic benefits of the scheme. 
• The national benefit value (eligible for claiming of FDGiA) has increased from £12.1m to £17.3m (Present Value terms). 
• The scheme now has BCR of 1.04 (National) and 1.26 (local) (Present Value terms). 
• (Present value is a measure of how much a future cash flow or value, is worth as of the current date.)
• In cash terms the benefits (National) have increased from £28.6m to £37.3m. 
• The review has provided a useful and encouraging update that reaffirms the schemes viability.

Delivering additional benefits

The scheme is shown to provide wider tangible benefits that are unable to be quantified and qualified under the MCM Guidelines, as well as aspects that are unmeasurable.

The assessment focuses on the immediate area around a scheme, in Langstone’s case we are unable to consider the wider impacts on the residents and businesses on Hayling Island being impacted with the loss and/or closure of the A3023, as well as the impact on emergency services who may need to access the island. These benefits cannot be counted or included in our benefit assessment.

The impacts relating to the loss or considerable damage to Langstone by erosion or flooding, would be a significant and unacceptable impact to the local community and the borough itself, but it is difficult to apply a measurable financial cost.

The community and wider borough will also benefit greatly from the implementation of a scheme. A scheme that reduces flood risk in to lower level brings with it less uncertainty of disruption or life threatening situations occurring. There are benefits to the wider borough where for potential investment into the area. A council that is reducing risk to its residents is demonstrating the care it has to protect and enhance the community that live and work in the area. The council seek to preserve wellbeing, livelihoods, heritage and culture of residents. These benefits are less tangible and difficult to measure but they are highly treasured as a motivation for delivering.

What happens next?

In January 2024, we presented the latest proposals to the public at an exhibition. The information presented is still available and can be viewed here, alongside a summary report of the feedback received.

At this exhibition, we reported a funding gap of £5.2million. 

In 2024 we reduced this funding gap through successful bids to draw upon Havant Borough Council Community Infrastructure Levy (CIL)

Through undertaking this benefits assessment, we have identified further eligibility potential for Grant in Aid (FDGiA) and will be making an application to draw upon £800k more.

The scheme still has a funding gap of £3.6million, which we are working hard to close.  

We have submitted a bid to the secretary of state to close the gap and we are awaiting an announcement , which has been delayed by the General Elections. We are awaiting the outcome of this bid and will provide an update in due course. 

As of July 2024, we are focusing on the finalisation and submission of the planning application, which will be released for public consultation. When this is submitted to the Havant Borough Council planning portal we will make an announcement. There have been some delays in submission whilst a road safety audit is undertaken. 

The programme ahead towards construction is routinely assessed based on the latest information available but will ultimately depend on the closure of the funding gap. 

January 2024

We are pleased to confirm that the detailed design for all frontages has progressed to the 100% design milestone. This means that the overall design ‘picture’ has been fully developed.

In January, Coastal Partners on behalf of Havant Borough Council invited the public to the Public Exhibition on the Detailed Design of the Langstone Flood and Coastal Erosion Risk Management Scheme.

This is the latest and most detailed vision of the design proposals which have been developed with the Community and other Key Stakeholders.

This drop-in style event presented a fantastic opportunity for residents and visitors to find out more, speak to the project team, and share views on the proposals for the Langstone Coastal Defence Scheme. 

For those who were unable to join us in person, we have prepared a NEW Exhibition Page with all of the information presented at the event. This page has now been updated to include a report about the event with a summary of the feedback received.

The design has now reached a major milestone. Together with your feedback on the exhibition, a recommendation will be made in 2024 to HBC Cabinet for the next stages of the project. Construction is currently programmed for Spring 2025.

What is the Langstone FCERM Scheme?

A Flood and Coastal Erosion Risk Management (FCERM) Scheme is being developed at Langstone, Hampshire.

Over the next 100 years, over 120 homes in Langstone are at risk of tidal flooding in an extreme event. The aim of this scheme is to develop and implement coastal management options to reduce the flood and erosion risk to the community, important heritage assets and Langstone Road (A3023) the only road crossing to Hayling Island. See background to the scheme, and progress made to date.

The options appraisal phase led to the development of leading options for defences. These options have now undergone detailed design, ready for presentation to the Community. 

Detailed design has been undertaken for the leading options of the Core and Additional Scheme. For further information on what these areas include please visit the ‘Core and Additional Scheme’ page.

What is Detailed Design?

The options appraisal culminated in an outline design proposal for the most achievable solution, also known as the ‘leading options’. The detailed design phase progresses these leading options to a higher level of design detail, where we aim to refine:

• The technical details for planning, construction, and buildability
• Knowledge of the integrity of existing walls to form part of the scheme, where possible
• The impacts on heritage, landscape and environment
• The appearance, construction materials and finishes
• The whole life cost

Click here for further detail about the scope of detailed design we have created a dedicated page.