The UK government’s Pre-budget Report and Comprehensive Spending Review, presented earlier this week, failed to provide any extra cash for flood prevention work in England and Wales.

In July, Environment Secretary Hilary Benn stated that spending on flood management would increase from £600m in 2006/7 to £800m by 2010/11 and, despite pressure from the insurance industry to increase this in the Pre-Budget Report, the amount stays the same. However, Mr. Benn has now clarified how the increases announced in July will be phased in, saying that annual budgets would rise to a minimum of £650m in 2008/09, and a minimum of £700m in 2009/10, reaching £800m by 2010/11.

When taking into account the fact that there are 410 local authorities in England and Wales, this equates to average funding of £1.95 million per authority by 2010/11 and a total of £850,000 in new money per authority over the three year period highlighted by Mr. Benn.

Reactions to the above have been mixed, with Sir John Harman, chairman of the Environment Agency, saying:

"We welcome the increase in funding for flood risk management, as announced by the government today in its Comprehensive Spending Review - it is moving in the right direction.

"We will never be able to protect everyone against all floods but we can progress now with confidence to deliver more schemes to protect people and property, and plan future schemes over the next three years.

"This welcome increase is an important step towards the long-term level of £1bn annual investment identified by the 'Foresight' study as being needed to stabilise flood risk in a changing climate."

The Association of British Insurers’ director general, Stephen Haddrill, was a lot less positive, stating:

"The insurance industry is helping tens of thousands of people affected by flooding this summer, but the government has now failed to play its part. Millions of homeowners and businesses around the country have been let down by the government’s failure to commit sufficient money to new and improved flood defences.

“Government spending for the next three years is less than we were asking for, even before the floods. It does not begin to address the major issues, including drainage, which were highlighted this summer. The government will have to increase spending substantially as needs are identified by the Pitt review team."

•Date: 11th October 2007• Region: UK •Type: Article •Topic: Emergency planning
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