MPs on a Parliamentary Committee are today warning that Government actions on flooding to spur economic growth are welcome but funding increases announced in this month’s Spending Round do not meet rising flood risk - with a further £20 million increase year on year needed for the next 25 years. The MPs also want SUDs measures implemented "without further delay".

The warning comes with this morning’s publication of the Environment, Food and Rural Affairs Committee’s Managing Flood Risk report - which flags up a range of issues where the MPs have serious concerns about the current Government approach.

On ther key issue of funding, the Report says that HM Treasury’s recognition that effective flood protection is essential for economic growth and regeneration has led to welcome increases in capital funding for defences until the end of the decade. However, the MPs say that even after increases announced in the 2013 spending round, investment remains insufficient to meet growing flood risk. With the likelihood of more frequent severe weather incidents leading to increased flooding in future, The Report says:

“Defra must convince HM Treasury that capital investment from all sources must be increased by £20 million year on year for 25 years to keep pace with threats due to climate and demographic changes.”

With spending on maintenance of defences and watercourses at its lowest for many years, the MPs also criticise ‘short-sighted’ reductions in revenue funding that threaten to undermine the benefits of capital investment in flood defences. The Report says that reduced revenue funding in recent years has led to a failure to maintain defences and watercourses effectively and that pegging revenue investment close to current low levels is short-sighted and risks undermining the benefits of capital investment in flood defences.

The MPs are critical of the new arrangements for flood investment and say that Defra must demonstrate in the next 18 months that the partnership model for fundingflood defence work can deliver much greater private sector funding since the approach has secured very little to date. The Committee also says that funding must be delivered more swiftly to local authorities and is recommending that central government provides funds for local authorities to repair flood damage to roads and other infrastructure.

MPs call for immediate implementation of SUDs measures

The Report also expresses serious concern about the current position on sustainable  drainage, stating:

 "The Committee is dismayed that Defra will not implement sustainable drainage provisions until April 2014. Sustainable drainage is a key aspect of managing flood risk and it is vital that the measures are adopted without further delay."

In the MPs view the coalition agreement’s commitment to end unnecessary building in flood plains has not yet been translated into effective action and are calling on the Government to review the effectiveness of the National Planning Policy Framework. if necessary, this should also include amending current guidance to prevent new developments adding to local flood risk. 

Launching the Report, Committee Chair, Anne McIntosh MP, said:

“Record rainfall in the past two years has led to extensive flooding, cost the economy millions and caused disruption and distress to householders and communities across the UK.

“Additional capital funding for flood defences is welcome since every £1 spent on flood defences to protect communities spurs growth and delivers economic benefits worth £8.

“But spending on flood defences has not kept pace with rising risks from more frequent severe weather. The Chancellor must ensure that investment increases by £20 million year on year. We need that money over the next 25 years to protect homes and businesses better. Maintenance of these defences and effective dredging of watercourses must be a priority.”

Flood insurance scheme idea welcomed - but greater clarification needed

The Committee has welcomed proposals for a new ‘Flood Re’ insurance scheme to make sure everyone can get affordable insurance. The scheme would be funded by a small levy, probably about £10 a year, on all household insurance customers, and the Committee insists that safeguards are introduced to keep the cost down. However, the Committee says that while Flood Re has the potential to provide an effective model  many details need to be clarified, including how theinsurance industry will be held to account in applying a levy on all household policies and how the taxpayer’s liability for losses in extreme circumstances will be minimised. The Report says:

"It isessential that the regulatory framework for the scheme is fully transparent and open to Parliamentary scrutiny. We will wish to scrutinise these issues further in due course and propose any necessary amendments during the Water Bill’s passage through the House."

Ms McIntosh added,

“Delay by the Government and the insurance industry in agreeing provision of affordable flood insurance has caused a lot of householders unnecessary uncertainty. The opaque cross-subsidy provided in the current Statement of Principles must be translated into a more transparent scheme with clear and robust governance arrangements.”

More than 5.5 million (one in six) properties in England and Wales are at risk of flooding from all water sources, with more than 2 million properties are at risk of flooding from rivers or the sea and nearly 3 million are susceptible to surface water flooding alone. A million properties are threatened by both.

In January the Committee published an analysis commissioned from the National Audit Office setting out levels of public and private investment in flood defences and their maintenance, the level of protection this investment is providing, and how engaged local communities are in developing the delivery plans. The NAO reported that Defra will spend an estimated £2.3 billion on coastal erosion and flood risk management in the current spending period.

The NAO noted that current costs of damage to properties caused by flooding from rivers and the sea was around £1.3 billion per annum but that this could rise to between £2.1 and £12 billion by 2080.

 Click here to read the Report in full