But no announcement yet on capital investment
Chancellor George Osborne has pledged to maintain government spending on flood defences despite a 10% budget cut to the Department for Environment, Food and Rural Affairs.
The cuts cover the 2015-16 period and the maintenance of spending in cash terms represents a real-term cut when inflation is factored in. “Public investment in existing flood protection and new schemes will support the insurance industry to maintain available and affordable flood cover for households,” the Treasury announced today.
“The government is also committed to providing the necessary capital investment to strengthen flood defences.”
The ABI said the announcement was “encouraging”, but that it was crucial to now see what level of capital spending has been allocated for flood protection.
“We have been in detailed negotiations with the government to find a way to make flood insurance available and affordable over the long term, and the right level of defence spending is very much part of that,” a spokesman said.
Allianz chief executive Andrew Torrance said: “We are satisfied with today’s announcement from the government that resource spending on flood defences will be maintained in cash terms and pleased to see its commitment to providing the necessary capital investment to strengthen those defences. Flooding is one of the greatest risks facing properties in the UK, and so the continued investment in prevention measures is essential to protect homes and businesses from potentially devastating consequences.”
Defra is expected to make an announcement on flood infrastructure spending plans this week
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