Government flood spending ‘short-sighted’ - select committee

The government’s decision to cut funding for flood defence maintenance is “short-sighted”, according a new select committee report on flood risk.

The report also urged the Department for Environment, Food and Rural Affairs (Defra) to boost spending on new defences by £20m a year for the next 25 years.

The Managing Flood Risk report, released this morning by the cross-party Environment, Food and Rural Affairs Committee, said increased funding for new defences is failing to keep pace with growing flood risk.

Undermined benefits

Flood defence spending has two main components: revenue expenditure and capital funding. Revenue expenditure covers maintenance of existing defences, while capital funding pays for new and improved defences.

Revenue expenditure was cut to £280m for 2013-14 from £295m in 2012-13. Capital funding was boosted to £294m (2012-13: £266m).

The select committee report said: “Reduced revenue funding in recent years has led to a failure to maintain defences and watercourses effectively. Pegging revenue investment close to current low levels is short-sighted and risks undermining the benefits of capital investment in flood defences.”

The report welcomed the increase in capital investment. But it added: “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, Defra must convince HM Treasury that capital investment from all sources must be increased by £20m year on year for 25 years to keep pace with threats due to climate and demographic changes.”

‘Disruption and distress’

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 £20m 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.”

Delays slammed

The committee welcomed the introduction of the Flood Re plan, which aims to ensure affordable insurance for homes at a high risk of flooding after the expiry of the Statement of Principles.

However, McIntosh hit out at the time it has taken to get an agreement on how to replace the Statement of Principles.

She said: “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.”