The Association of British Insurers has attacked the level of new funding for flood defences outlined in the Government’s Comprehensive Spending Review (CSR). Environment Secretary Hilary Benn announed on 9 October that annual budgets on flood management would rise to a minimum of £650m in 2008-9, and a minimum of £700m in 2009-10, reaching £800m by 2010-11.

But Stephen Haddrill, the ABI’s Director General, said: “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.”

Today’s announcement of the next three years’ spending on flood defences shows that the Government has completely failed to grasp the importance of improving Britain’s flood defences in the wake of the devastating floods across the UK, says the ABI. The insurance industry will be conducting an in-depth review of this summer’s floods.
www.abi.org.uk