Commons Public Accounts Committee ‘sceptical’ about government’s flood defence funding which leaves 5 million homes at risk

flood

The government is under fire today after a powerful group of MPs warned that cuts have left millions of homes across the country at risk of flooding.

In a wake-up call for the government, the Commons Public Accounts Committee (PAC) said cuts have left a “big mismatch” between money available for flood defences and that needed to maintain protection for the five million UK homes at risk.

Chair Margaret Hodge said: “The annual cost of flood damage is at least £1.1bn, and ageing defences and climate change will increase that bill.

“So flood protection is a national priority. The Department for Environment sees more funding coming from local sources [but] we are sceptical this will be possible when local authorities and businesses are themselves under financial pressure.”

A Department for Environment, Food and Rural Affairs (Defra) study released last week on climate change said flood damage in the UK is to rise by up to 10 times. Flood spending fell 27% in the first year of the coalition government.

National Flood forum chair Charles Tucker told the Guardian: “The money just isn’t there – either from government or from local sources. The government is flying on a wing and a prayer – hoping against hope that the big floods keep off until national finances improve – and gambling with the future of thousands of communities.”

AA Insurance director of broker Simon Douglas said: “Flood protection is a national priority, yet many people in flood-prone areas may find their homes difficult to insure from later this year. 

“People want the government to take decisive action now, to ensure that their homes are protected.

“But that’s not happening with the Environment Agency’s budget cut by 10%. What’s more, the Department for Environment, Food and Rural Affairs is seeking an increased contribution of more than 300% from local resources to tackle flood protection issues, when local government budgets have been severely cut too.”

Douglas said that the insurance industry is becoming concerned at growing numbers of claims resulting from increasingly frequent extreme weather, including flooding.

“The AA’s benchmark British Insurance Premium Index shows that home buildings premiums in the UK rose by 9.5% last year, while the cost of contents cover rose by 11.2% (to £157 and £81 respectively). With continuing concern about climate change, this upward trend is expected to continue.

“When the present agreement between the insurance industry and the government - the so-called ‘statement of principles’ that ensures flood-prone homes can continue to be insured - ends on 1 July 2013, there is no certainty that such protection will continue.

“Some insurers are telling us that flood-prone homeowners might not be able to renew their cover later this year, because their new policy will extend beyond 1 July 2013: with all the implications for property value and mortgage availability that this implies.

“That does not augur well for the 5.2 million families estimated to be at risk from flooding.”

Douglas adds: “The Public Accounts Committee has come up with a range of sensible recommendations which must be acted upon now.

“Homeowners expect the government to take a lead on this issue: they need some reassurance that they won’t be left unprotected.”

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