Forum Brief: Flooding

Thousands of households could lose their flood insurance if the government cuts its spending on flood defences, the Association of British Insurers has warned.

The ABI's concerns have been underlined by the findings of the Department of Trade and Industry foresight programme.

Government Response: Department for Environment, Food and Rural Affairs

Elliot Morley, environment minister, said: "Managing future flood risk, including the latest climate change predictions, is a challenge Defra is addressing as it works on its new Strategy for Flood and Coastal Protection.

"Foresight's important insights mean that part of Defra's work is already done.

"Government spending on flood and coastal defence has risen significantly in the last three years and the UK is firmly committed to combating climate change. But this very useful 'what if?' report underlines the need for the government flood management programme to keep evolving to face up to new potential risks and challenges."

Party Response: Liberal Democrats

Norman Baker, Liberal Democrat environment spokesman, said: "This report demonstrates yet again both the seriousness of the threat we face from climate change and the significant cost to the economy of doing nothing.

"It’s all very well for Tony Blair to preach to the world that action is needed, but he must set an example at home.

"We must have further examination of planning requirements to take account of Sir David King’s predictions to ensure we are not building ourselves more problems for the future.

"The government must also introduce demand management for transport rather than allowing the present free-for-all, which leads to massive increases in carbon emissions, to go on."

Party Response: Conservative Party

Theresa May, shadow secretary of state for environment and transport said: "Over the past few years the United Kingdom has seen several serious flood incidents. Clearly, there is much to be done and combating climate change is an essential element of the long-term strategy to flood defences.

"The government has shied away from this issue for some time, despite growing anxiety amongst many vulnerable communities throughout the country. This must now be a priority. Once more the government are letting people down by failing to take responsibility and act."

Forum Response: Association of British Insurers

John Parker, the ABI’s head of general insurance, said: "Climate change is the most significant environmental challenge facing society. This report highlights the need to pro - actively tackle climate change if we are to avoid significant rises in the risk of flooding.

"While the government has a significant flood management programme in place, in some areas the flood risk remains substantial. Increased government spending on flood defences in recent years needs to be sustained to ensure that flood insurance continues to be widely available."

Forum Response: Council of Mortgage Lenders

A spokesman for the Council of Mortgage Lenders told ePolitix.com: "We fully support the ABI's calls for the government to sustain spending levels on flood and coastal defences. 

"The ability to obtain insurance is a key requirement for both lenders and borrowers.  Without the protection of insurance, the lender's security in a property is threatened, making it virtually impossible to obtain a mortgage. 

"Even if borrowers could get a loan for a property, they would be extremely vulnerable if they had to meet the costs of any significant flood damage from their own pockets. 

"In addition, the pressure to find land to meet housing demand means that more homes are likely to be built where there is a risk of flooding, so adequate investment in proper defences is essential."