The government has scrapped plans for a proposed flood tax for residents in flood prone areas.

The suggestion of a flood plain levy was aired in the Department for Environment, Food and Rural Affairs (Defra) consultation on flood and coastal defence funding earlier this year.

Ministers were advised that the levy would prove unpopular.

A spokesman for the ABI said that the tax was one of a number of funding opportunities suggested in the document.

"It is not for the ABI to advise on how to tax people, but we do want to see a better spending of money on flood defences," he said.