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Here comes the Flood - defence spending could be a disaster

GOVERNMENT CUTS in flood defence spending could prove to be a disastrous move for the economy, an insurance broker has warned.

As high levels of rain have led to flood warnings in many areas of the country, the chartered insurance broker is calling on the Coalition to review its flood spending to prevent further damage to UK business.

According to the Association of British Insurers, the British economy is saved £8 for every £1 spent on protecting homes and businesses from flooding, but in October it was announced that Government expenditure between 2011 and 2015 would be cut by £216 million to a total of just £500 million.

With rising temperatures increasing the risk of flooding, such disasters look set to become more frequent.

Grant Scott, associate director at Cowens Survival Capability comments: “The current level of protection is inadequate and has left many businesses struggling to find suitable insurance, leaving them exposed to flood risk.”

Although insurers have pledged to provide flood cover to as many businesses as possible until 2013, prices look set to rise, with premiums already becoming unaffordable for many businesses.

This was posted in Bdaily's Members' News section by Ruth Mitchell .