Cabinet
Subject: Brighton Marina to River Adur Flood and Coastal Erosion Risk Management (FCERM) scheme – Project Update and Phase Two Procurement Strategy
Date of meeting: Thursday, 24 April 2025
Report of: Cabinet Member for Transport, Parking and Public Realm
Lead Officer: Name: Corporate Director- Operations
Contact Officer: Name: Steven Parker
Tel: 077160 48723
Email: steven.parker@brighton-hove.gov.uk
Ward(s) affected: (All Wards);
Key Decision: Yes
Reason(s) Key: Expenditure which is, or the making of savings which are, significant having regard to the expenditure of the City Council’s budget, namely above £1,000,000 and Is significant in terms of its effects on communities living or working in an area comprising two or more electoral divisions (wards).
1.1
Brighton &
Hove’s Council Plan outlines our mission to develop a
flourishing and inclusive local economy in a city that is
accessible and has a sustainable environment we can all be proud
of. The seafront and beaches are a core part of this mission with a
commitment to both protect and manage our unique coastal
environment through innovation and investment.
1.2 The Brighton Marina to River Adur - Flood and Coastal Erosion Risk Management (FCERM) Scheme (the Scheme) - is core to realising our aims and is necessary to protect our beaches and foreshore from erosion, and the city from floods and associated damage.
1.3 Following the completion of Phase 1 the purpose of this report is to seek cabinet approval and delegated authority to deliver Brighton & Hove’s Phase 2 commitment which consists of work within its boundary.
1.4 This approval would include an increase in the capital contribution from £6.515m to £11m and the release of the unapproved budget sums outlined in Part 2. This increased sum is due to additional shingle replenishment / recharge required to stabilise the beach bays and inflationary cost over the last 5 years.
2.1 Cabinet agrees to increase the capital contribution for the BHCC Phase 2 works from £6.515m to £11m for the Brighton Marina to River Adur Flood and Coastal Erosion Risk Management (FCERM) Scheme.
2.2 Cabinet agrees to release the unapproved sums - allocated to the Scheme for the purposes of BHCC Phase 2 works and contained within the forward capital plan - to approved status. These sums are stated in Part 2
2.3 Cabinet agrees to authorise an open procurement process to select a suitable and competent supplier to carry out the BHCC Phase 2 construction works within the BHCC area.
3.4 Brighton and Hove City Council are the Lead Authority for the Scheme, and there are three key stakeholders / partners who are;
· Brighton & Hove City Council
· Adur & Worthing Councils
· Shoreham Port Authority
3.5 Each partner is responsible for financing their capital contribution and is independent in this regard. No financial responsibility to deliver work outside each partners boundaries exist.
3.6 The Scheme partnership was created to share resources and deliver better value for money across this low lying vulnerable coastal stretch as well as seeking grant in aid via the FCERM opportunity.
3.7 The Scheme will provide extended shingle beaches, improvements to existing defence structures and additional rock revetements to better protect our crucial assets from the impact of storms and erosion that occurs over time and is likely to increase due to global warming.
3.8 The Scheme has two phases – 1 and 2 - and Phase 1 has already delivered a fully costed detailed design and specification, planning and licensing and biodiversity net gain once works are completed. In addition, construction work near the Lagoon at Hove Deep Sea Anglers and part of Southwick beach were included within the first phase.
3.9 The works specific to Brighton and Hove City Council in Phase 2 are located at Kings Esplanade and Southwick Beach (BHCC Phase 2). The main cost of these works is Kings Esplanade where the old groynes are being taken out, new extended ones built, and a replenishment of shingle pumped onto the shore to stabilise the beach bays in this area.
3.10 The Scheme was approved (comprising Phases 1 and 2) by the Environment, Transport and Sustainability Committee in June 2019 and then submitted to the Environment Agency for their approval. Delegated approval was given by the Environment, Transport & Sustainability Committee to enter into a Memorandum of Understanding and collaborative agreement with both Adur District Council and Shoreham Port Authority for the combined submission to the Environment Agency of the Brighton Marina to River Adur Outline Business Case (OBC).The Committee was also updated in June 2020 and July 2020 when authority to enter into agreements and award contracts were approved and delegated.
3.11 The OBC was approved by the Environment Agency (EA) on 26 November 2020 with a grant in aid (GIA) contribution of £12,085,444 and an agreed total scheme value of £35.526m. BHCC were approved as the lead authority both managing the Scheme outcomes and providing resources and oversite where necessary. These costs are recoverable and viewed as legitimate project expenditure.
3.12 In 2021 – at the request of the Environment, Transport and Sustainability Committee – the Procurement Advisory Boad (PAB) reported and recommended to divide the scheme into two phases, use the EA framework to award two contracts and, to enter into all necessary agreements to procure and deliver Phase 1.
3.13 In 2021 a further £2m of funding was provided by the EA to accelerate Phase 1 of the Scheme so that physical works could start in 2022 within BHCC areas. This work was completed as part of the Phase 1 delivery in early 2024 and was awarded via the EA’s construction delivery framework. Delegated authority was passed to the then Director of Services to carry out all necessary decisions in-line with all previous approvals and updates.
3.14 In February 2025 the Scheme achieved completion of Phase 1 and is now moving into Phase 2. It is important that Phase 2 is a continuation so the team can deliver consistency, clarity and value in line with FCERM requirements and within the GIA timeline of year end 2027/28: 6 years from approval.
3.15 As this report is released BHCC is in discussions with the EA for additional grant in aid funding as well as other potential sources that help and assist works that feed into the FCERM strategy. This includes recent request for BHCC to apply for grant monies available in the financial year 2025/26.
3.16 The required works within BHCC are in two key areas. These are;
· Kings Esplanade (New Groyne Field)
· Southwick Beach, Hove (rebuilding of depleted sea defences).
3.18 At the current time the programme to begin works at Kings Esplanade is late September 2025 so the works can be completed around May 2026. At Southwick beach the work will be started during 2026 with completion by April 2027. It may be possible to start the work earlier if the loan agreement with Shoreham Port Authority is signed and in place.
3.19 As Phase 1 comes to an end the EA require the Lead Authority (BHCC) to update on the future works programme for each area and also provide any request for additional funding based on revised design cost and inflationary uplifts. This update is provided by way of a revised Outline Business Case (OBC).
3.20 This revised OBC will be submitted in April 2025 and includes a request for additional funding. Discussions with the EA have taken place during the revision process and the Scheme is viewed favourably having completed Phase 1.
3.21 In summary, the OBC update shows the overall Scheme value has increased from £35.526m to £41.5m and the updated grant in aid claim is for an additional £5m over the current allocation.
3.22 In respect of Kings Esplanade, the Brighton & Hove Sea front and its iconic beaches act as both a catalyst for visitors and residents as well as providing the first line of defence against flooding and erosion. The shingle helps reduce the wave energy through absorption and dissipation, but the shingle also shifts and moves along the shoreline creating seasonal and tidal levels within the foreshore. Overtime shingle can be lost requiring intervention in a process known as recharge or replenishment and cost millions of pounds for even the smallest operation.
3.23 Groynes are designed to trap shingle and sediment preventing the action of longshore drift (the movement and loss of shingle) and have the effect of stabilising the beach which can last indefinitely if maintained. We have seen successful developments along many sections of Brighton & Hove Sea front that are located beyond the original sea wall and benefit from both foot fall and destination activities and leisure.
3.24 In the last 100 years the beach has dramatically widened in areas like Madeira Drive / Terrace where the shingle is now sitting around 3 to 4 meters higher due to intervention and the marina development.
3.25 Phase 2 of the Scheme covers nearly all the Southwick beach front as well as the Kings Esplanade in Hove. As the lead authority managing the Scheme on behalf of the stakeholders BHCC will endeavour to work with both Adur and Worthing and Shoreham Port Authority to help them meet their commitments.
3.26 In this regard a £2.5m loan facility to Shoreham Port Authority for the area within our boundary but on their land has formed part of the overall strategy for delivering the Scheme. The terms of the loan will be agreed under delegated authority by the Corporate Director of City Operations
4.2 In addition, as lead authority our obligations to manage the Scheme and report back to the Environment Agency would fall away if we were to now not move forward; affectively stopping at the completion of Phase 1. This would likely harm any future government funding applications on coastal and other flood defence schemes, weaken our ability to be a trusted partner and have implications around the current investment (GIA) already spent.
4.6 Other options are that Shoreham Port Authority raise the money privately however this goes against the general consensus since 2021 and would potentially cause conflict around delivery and management costs.
6.1 Total costs for the wider Scheme have risen by £5.974m from £35.526m to £41.5m, this is a result of increased costs in addition a larger volume of materials required to complete the project than originally estimated. The main report outlines that the project has already had grant funding approved of £14.085m and it is anticipated that there will be further grant available of £5.414m which covers much of the increase in costs, with a minor impact on other partners involved in the project.
6.2 The increase in grant has not been approved yet and so represents a risk to the Scheme. Should the claim be refused this risk would be carried by the partners and then these will be additional costs the partners will share and BHCC share may be met from borrowing, or risk the project not proceeding.
6.3 Further financial implications are contained in Part 2
Finance Officer consulted: Craig Garoghan Date: 07/04/25
7.1 The Council has the power to take forward the arrangements contemplated by this report pursuant to section 1 of the Localism Act 2011 which allows the Council to do anything that an individual may do subject to any statutory constraints on the Council’s powers. None of the constraints on the Council’s s.1 power are engaged by these decisions. The exercise of the delegated authority by the Corporate Director City Services to provide a loan facility to the Shoreham Port Authority will be subject to the necessary due diligence as well the agreement of terms in compliance with the Subsidy Control Act 2022.
7.2 In proceeding with the procurement contemplated by this report, the Council is required to comply with the Procurement Act 2023 in relation to the procurement and award of contracts above the relevant financial threshold for works. The Council’s Contract Standing Orders will also apply.
Lawyer consulted: Siobhan Fry: Date:10/04/2025
10.6 Health Safety and Wellbeing: the suppliers and future suppliers have and are required to demonstrated environmental credentials, their commitment to operating in a proactive manner and their legislative responsibilities.
11. Health and Wellbeing Implications:
12. Procurement implications
13. Crime & disorder implications:
Supporting Information:
Appendices:
None
Background Documents