Leeds has not suffered to the same extent as other parts of the region in recent years, but it has witnessed severe localised flooding and its geography leaves the city at continued risk.

The Environment Agency's plan to make Leeds one of the best protected cities in the country should therefore be considered a wise investment. Leeds is a major business centre. If it is to maintain that reputation, companies locating in the city need assurance that their operations will be as secure as possible.

It is far from certain, however, how much of the estimated £75m cost will be recovered from private developers. Given the growing hole in the Government's books, and Defra's own history of financial mismanagement, it is likely that flood defences will depend heavily on securing contributions from the private sector for the foreseeable future.

Yet, is it realistic to expect companies to incur extra costs – even more so at a time when the economic outlook is so bleak? Businesses will need convincing that any spending on flood defences will be in their own interests. The Environment Agency must work closely with Leeds City Council and Yorkshire Forward to ensure that the cost of improving the city's flood defences does not become a barrier to vital inward investment.

This dilemma underlines the need for flood defence spending to be put on a more secure long-term footing. Britain's
readiness for extreme weather should not
depend on the short-term ebbs and flows of the economy. It's time that Ministers realised that this is a priority issue.