Fears for thousands of homes as flood defence spending cut

Despite Government claims to have prioritised spending on flood defences, the budget for the next four years is actually a cut of nearly one fifth compared to the amount being spent this year, according to the Commons Environment, Food and Rural Affairs Select Committee.

The committee's Tory chairman Anne McIntosh, MP for Thirsk and Malton, said there are "very real concerns" about the cuts and questioned the Government's assumption that communities will step in to protect their area and fill any gap in funding.

Today's report comes amid continuing uncertainty over whether homes in flood-threatened areas will be able to secure insurance after 2013, when an agreement between the Government and insurance industry comes to an end.

The uncertainty is particularly concerning for thousands of homeowners in South Yorkshire and Hull whose properties were devastated during the severe floods in 2007, and MPs say there is an urgent need for a new agreement to be put in place.

The committee said flood defences have benefits of 8 for every 1 spent, but added: "Simply to maintain the current level of protection in the face of increasing flood risks requires increased investment and the significant Spending Review cuts will increase concerns that funding on flood defences remains inadequate."

Ministers insist an extra 145,000 properties will be protected over the next four years because of the money they are spending, but the committee says that spending is falling by eight per cent over the next four year compared to the previous four years – and is a reduction of 17 per cent compared to spending in 2010-11.

The cuts have sparked a debate over how projects can be funded in the future, with the Government currently consulting on how resources should be allocated.

An "urgent" agreement on the future of insurance for homes and businesses in flood risk areas is also needed, with MPs calling for premiums to recognise any flood defence measures installed by individual householders.

Miss McIntosh said a pilot project in Pickering could provide a model for the future.

The "innovative" scheme involves planting trees, creating buffer strips along watercourses and blocking moorland drains so it takes longer for rain falling on higher areas to reach the river flowing through the town.

She said: "There are very real concerns that the Government has cut flood defence funding and will in future require communities to pay a greater contribution towards the defences from which they benefit. At a time of budgetary constraint, the committee believes there is no certainty that this funding gap can be filled."

Environment Minister Richard Benyon said flood management was an "absolute priority" for the Government but added: "The reality is that central government cannot foot the entire bill for flood defences – a point made by the Pitt Review in 2007. We are consulting on a fairer way of allocating funding for flood defences, and by allowing local and private contributions, we can pool resources and make sure projects that local communities want go ahead, and which otherwise wouldn't have happened at all."