How many realise that the government’s much-vaunted & welcomed 2013 flood insurance agreement has not yet been implemented?
Britain is still building nearly 10,000 new homes a year on floodplains despite growing warnings over episodes of extreme flooding. The FT reports that one new home in every 14 that was built in 2013-14 — the most recent year for which data is available — was constructed on land that has a significant chance of flooding, either from a river or the sea, according to an FT analysis of official figures.
A report by the Environment Select Committee has warned, on page 27, that “the large number of properties at significant and in some cases increasing risk of flooding means that prioritising spending on flood defences is essential if the UK is to minimise potentially huge costs of future flood events”. It called on the environment department to set out its detailed budget for maintaining flood defences within the next three months.
In 2013, reports following government negotiations with the Association of British Insurers, announced the capping of flood insurance premiums.
Smaller businesses were to be excluded from the programme, which guarantees affordable insurance to domestic properties, except for rentals; landlords are not eligible, so tenants in flooded properties face the prospect of being removed. Yesterday the Financial Times reported the FSB’s estimate that about 75,000 smaller businesses at risk of flooding had found it difficult to find flood insurance and 50,000 had been refused cover nationally.
Accountants – KPMG [Press Reader], PwC [BBC] – have warned that thousands of businesses will face financial ruin because they will have to bear a fifth of the estimated £5bn national cost of flood damage, with inadequate or non-existent insurance cover.
John Allan, the FSB’s National Chairman, said: “Ministers should look again at the availability of affordable and comprehensive flood insurance for small businesses, potentially through a dedicated Flood Re style agreement. The financial cost to small businesses following the 2012 flooding was £200 million.
“We can’t hope to create a buoyant economy . . . if vulnerable small businesses can’t sufficiently protect themselves from increasingly unpredictable and severe weather that in the worst cases can close a business.”
Posted on December 29, 2015, in Economy, Environment, Finance, Flooding, Government, Housing, Inequality, Local government, Parliamentary failure, Planning, Reward for failure, Secret State, Taxpayers' money and tagged Association of British Insurers, Environment Agency, Environment Select Committee, Federation of Small Businesses, flood defences, Flood insurance, Flood Re, floodplains. Bookmark the permalink. 2 Comments.