Flood Defences

Baroness McIntosh of Pickering Excerpts

Thursday 1st December 2016 Lords Chamber

Asked by

[Baroness McIntosh of Pickering]

To ask Her Majesty’s Government, further to the announcement in the Autumn Statement of £170 million to be invested in flood defence and resilience measures, and in the light of damage to farmland and property caused by the recent floods, whether they intend to extend the provisions of the Flood Re scheme to farms and small businesses.

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Gardiner of Kimble)]

My Lords, I declare my farming interests as set out in the register. There are no plans to extend Flood Re, because it is based on council tax bands and was specifically designed by the insurance industry for households at the highest flood risk. This would include farm-houses under a domestic policy. We are, however, working with the British Insurance Brokers’ Association, BIBA, which is launching a commercial product very shortly that provides flood insurance to businesses.

--- Later in debate ---

[Baroness McIntosh of Pickering (Con)]

I thank my noble friend for his Answer and refer to my interests in the register. Does my noble friend agree that this insurance must be affordable? Does he further agree that it is particular rural areas that have suffered extensive damage from recent and historic flooding? Will the Government agree that the 2% increase in the insurance premium tax will be spent on flood defence measures to make sure that flood damage will be less pervasive in future?

[Lord Gardiner of Kimble]

My Lords, it would be fair to explain that £2.5 billion—a six-year capital flood programme allocated to DEFRA to 2021—is the route to protect more than 300,000 homes, 205 miles of railway and 340 miles of roads. This is the way that we will overwhelmingly ensure that more of not only our urban but our rural areas are better protected. Included in that programme will be £1.5 billion of benefits for agriculture. However, I will bear in mind what my noble friend said and will write to her.