£750m 'needed for flood defences'

The Government needs to invest £750 million annually on flood defences to protect homes from climate change, British insurers have said.

The Association of British Insurers (ABI) called for ministers to tackle the causes and consequences of severe weather patterns in a manifesto on climate change.

The group suggested the annual spend on flood protection measures should rise by 10 per cent to £750 million and sought a commitment that hospitals and schools would be built to cope with the environment of 2050.

It said the changes would need to be in place by 2011 for Britain to be prepared for climate change. The ABI also called for energy supplies to be protected against adverse weather conditions.

The recommendations come just days after heavy rain caused chaos across the country.

Damage from the storms is expected to cost tens of millions of pounds. The typical insurance claim made by homeowners affected by flooding is £15,000 to £20,000, according to ABI figures.

Stephen Haddrill, director general of the ABI, said: "However successful we are at reducing our carbon footprint now, weather damage will worsen over the next 40 years because of past emissions.

"The Government needs to invest at least £750 million a year in flood defences, and should use the Climate Change Bill and Comprehensive Spending Review to set out an effective climate risk management strategy.

"Insurers remain committed to working with Government and our customers to help manage the consequences of climate change."

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