Future Flood Prevention

Thérèse Coffey Excerpts

Monday 27th February 2017 Commons Chamber

[Mary Creagh]

My hon. Friend is absolutely right. She has joined me on the Environmental Audit Committee, and her expertise on this subject has been invaluable.

The Committee on Climate Change warns that increased flood risk affects property values and business revenues, and, in extreme cases, threatens the viability of some communities. A much worse scenario is set out in the climate change risk assessment: if global temperatures rise by 4° above pre-industrial levels, the number of UK households predicted to be at significant risk of flooding will double from 860,000 today to 1.9 million in 2050. Those are very stark and very concerning figures.

I know from my own constituency the misery that flooding can bring. In the 2007 floods, 1,000 homes in Wakefield were flooded. As my hon. Friend the Member for Wolverhampton South West (Rob Marris) said, successive Government have cut funding over the years, and 2007 was one such year—it was Labour that cut the funding that year. Our flood defence programme was cut, and I lobbied very hard to get that money reinstated. We got £15 million for flood defences to protect our cities. Thanks to those defences, which were completed in 2012, Wakefield managed to escape the worst of the 2015 storms. That was really, really important.

Nationally, the Government have taken a rollercoaster approach to funding. During the previous Parliament, flood funding was initially cut by 27%. The money was then reinstated after the 2013-14 floods. Mark Worsfield’s review of flood defences, which was published by my Committee, showed that those Government cuts had resulted in a decline in the condition of critical flood defences. It showed that the proportion of key flood defence assets that met the Environment Agency’s required condition fell from 99% in 2011-12 to 94% in 2013-14. Therefore, in three years we had a pretty large decline in the condition of mission critical flood defence assets, which posed an unacceptable risk for communities—I am talking about those communities that think that they have their flood defences in place and that they can sleep easy in their beds at night when it is raining. The more flood defences that the Government build, the more they need to increase the maintenance budgets. We cannot keep spending more on capital and then cut the revenue budget.

The failure of the Foss Barrier in York shows what happens when critical flood assets fail. It was built on the cheap in the 1980s. It was not built to the correct height and it had just two mechanisms. Once one of those mechanisms failed, the water overtopped its banks and reached the electrical switch rooms. Local flood engineers were left with no choice but to raise the barrier with very little notice, which led to hundreds of homes being flooded. I know that my hon. Friend the Member for York Central (Rachael Maskell) will have a great deal to say on that.

The Government are talking about spending more on flood defences. One mechanism they are using is the so-called partnership funding. My Committee looked into the sources of that funding and found that 85% of it was coming from public sector bodies. Therefore, the Government are cutting funds centrally, and then putting pressure on hard-pressed local councils, which have seen their budgets fall by 30% over the past seven years, to boost their flood defence assets. When they say, “Do you fancy stomping up for some flood defence assets for your town or city.” those councils are left with no choice but to say yes. Just 15% of the money is coming from the private sector. Of course, it is not a level playing field, because any private sector company that gives the Government money for partnership funding gets tax relief on that so-called donation.

At the start of each spending review, the Government announce how much they will spend. In 2015, they allocated £2.5 billion for flood defences, but after storms Desmond, Eva and Frank, the Government announced, in Budget 2016, that the funding was not adequate and that they were going to invest an extra £700 million. Once again, we have this stop-start approach—cut when it is dry and spend when it is raining. The hon. Member for Penrith and The Border (Rory Stewart), who was then a Minister in the Department for Environment, Food and Rural Affairs, said that the extra money would be spent according to a “political calculation”.

[The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Dr Thérèse Coffey)]

Let me point out that we have increased our budget, not cut it.

[Mary Creagh]

The coalition Government in 2010—I know that the hon. Lady was not a Minister then—cut the flood defence budget by 27%. Of course, the way in which the Minister is raising the money—the extra £700 million that was announced in the Budget in March 2016—came from a stealth tax: an increase in insurance premium tax. That raises £200 million a year and goes on every insurance policy in the country, so car drivers and people who own pets are paying for flood defences. We can argue about whether that is the most transparent way of raising money for flood infrastructure.

I will talk about the Committee’s report and the criticisms that we have made, particularly about infrastructure resilience. Storm Angus caused landslips and ballast washaways on railway lines in Devon, Cornwall, the north-east and Scotland before Christmas, bringing travel disruption—as storms always do—as we saw last week with Storm Doris. Last winter’s floods, particularly those in Leeds, which the Committee visited, showed that key energy, digital and transport infrastructures are not well protected. Let us not forget the bridge being washed away in Tadcaster. The replacement bridge has only just reopened, over a year after those floods. Roads and railways going down have a huge impact on the economics of an area.

The Government’s national flood resilience review, published last summer, found that 500 sites with nationally significant infrastructure are vulnerable to flooding. During the winter floods of 2015-16, nine electricity sub-stations, and 110 water pumping stations or sewage works in Yorkshire were affected by flooding. Keeping the water supply going and the sewage under control is vital. My Committee recommended that the Government mandate energy and water companies to meet a one-in-200-year flood resilience target for risk. I am afraid that the Government’s response was hugely disappointing, simply saying, “We don’t think that’s the best way of doing it”, but not saying what the best way is. I am interested to hear that. Our strategy cannot just be tumbleweed—listening for the wind and hoping that it is not coming our way.

Minimum standards for energy, transport infrastructure and digital telecommunications companies are vital. Let us not forget that the railway lines were flooded out of Leeds. The police Airwave response radios went down, so West Yorkshire police were unable to work out where to send their blue light emergency response vehicles in the middle of a civil emergency. That is simply not good enough. If that had happened not on Boxing day, but on a normal working day a couple of days later, tens of thousands of people would have been stranded in Leeds city centre with nowhere to spend the night. There would have been a much bigger civil emergency response.

The Government’s long awaited national flood resilience review was published in September. It was good to hear about some of the things that are happening, such as the mobile flood defences. However, the Committee thinks that flood defences are essentially a sticking plaster solution: they are good as far as they go, but fail one third of the times they are used, so they work only twice in every three times. The review said nothing about the risk from heavy rainfall overwhelming sewers. No one likes to talk about sewage, although some people might think that a lot of it goes on in this place, Madam Deputy Speaker, but clearly not in this debate and under your excellent chairmanship.

The Government need a comprehensive long-term strategy properly to deal with some of the granular issues around flood risk, none more important than the way in which local authorities have to deal with flood planning and prevention. Some 30% of local authorities in September 2016 simply did not have a complete plan for flood risk, and a quarter of lead local flood authorities did not have a strategy. How are the public and Members of this place meant to scrutinise whether the plans and responses are adequate if they simply do not exist?

The Environment Agency provides advice to local councils about where new housing developments should be built in order to minimise flood risk, and the Committee heard that such advice is usually followed. However, almost 10,000 homes were built in high flood-risk areas in 2013-14. The extent to which the Environment Agency’s advice on where or whether to build homes is systematically monitored, reported or followed up through the planning system is simply not known. There is nothing wrong with building new homes in flood-risk areas, as long as those areas are adequately protected—Southwark and this place are at risk of flooding, and people are obviously still building new homes in London because there is a thing called the Thames barrier—but the situation is not being systematically monitored. We would therefore like to see much more help going from DEFRA and the DCLG to enable councils to adopt local flood plans and then actually follow them up.

In the wake of the winter storms in 2015-16, the then Prime Minister appointed two Ministers as flood envoys to co-ordinate the response to flooding in two areas: the hon. Members for Penrith and The Border (Rory Stewart) in Cumbria and for Scarborough and Whitby (Mr Goodwill) in Yorkshire. A question was raised about whether those posts transferred under the new Government and the new Prime Minister. I wrote to the Secretary of State for Environment, Food and Rural Affairs in July. She responded in September, saying she was thinking about it. Finally, on 7 January, we got a reply saying, “Actually, they are still in post.” It should not take six months for the Secretary of State to reply to a Committee Chair of this House to let us know whether, in the event of a flood, those two Ministers are still co-ordinating the response. What would have happened if flooding had taken place in Jaywick? That is simply not acceptable.

Finally, on insurance, last winter’s devastating floods cost over £1.3 billion in insured losses and about £5 billion across the whole economy. As I said, my Committee visited Leeds, and we had particular access to insurance. We had people coming across from Calderdale, where 70% to 80% of businesses were affected by the flooding—they have been affected almost annually by fluvial flooding and surface flooding. The floods cost small and medium-sized enterprises an estimated £47 million, with indirect costs totalling £170 million.

The floods in Leeds were the worst since 1866. Leeds University, which has done some research into this issue, told my Committee that 60% of local businesses have been unable to obtain a quotation for insurance since last winter’s floods. We heard of one business whose excess had risen from £1,000 to £250,000 after the floods. We heard of another business whose buildings insurance premium rose 60%, to £10,000, and whose excess increased 40%, to £10,000, but it would get the insurance only if it stumped up £400,000 to build new flood defences. The Committee on Climate Change says that the economic viability of some areas is being threatened, and the way insurance companies are failing to rise to meet this risk and failing to stand with communities is putting whole parts of our country at risk of becoming economically unviable.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Dr Thérèse Coffey)]

I congratulate my hon. Friend the Member for Tiverton and Honiton (Neil Parish) on opening the debate and thank the many hon. Members who have contributed, often using direct constituency experience or a broader view from their role on the Environment, Food and Rural Affairs Committee. I welcome the elevation of the hon. Member for Workington (Sue Hayman) to her new position as shadow Secretary of State; it is a pleasure to debate such matters with her. It was also a pleasure to be in her constituency during the recent recess when I visited the toy shop on the high street of one of her principal towns.

Flood and coastal risk management is a high priority for this Government. Compelling evidence suggests that climate change may lead to increases in heavy rainfall and increased risks from fluvial and surface water flooding by the mid-century. Both present significant risks, so we are putting in place robust, long-term national strategies to protect the nation. I am very aware of the impact that flooding can have on a community. In the worst cases, flooding can lead to loss of life, and even moderate flooding can cause significant damage to property and disruption to transport, communications infrastructure, businesses, schools and hospitals. I have certainly supported my constituents in Suffolk following flooding in recent years, and I am fully committed to reducing the impacts of flooding and coastal erosion. To that end, I thank Councillor Andy Smith, who is responsible for coastal management in my area and is chair of the coastal special interest group around the country through the Local Government Association. Together with the Environment Agency and councils, that sort of experience is leading to good local decisions.

[John Redwood (Wokingham) (Con)]

House building in areas such as mine will add to the flooding problem. Will the Minister press the Environment Agency to ensure not only that it demands that enough provision is made for new houses, but that some retrofitting is done? Previous new developments have led to far too much surface water.

[Dr Coffey]

I recently met my right hon. Friend to discuss that matter. I also met several other people who have not spoken in today’s debate to discuss the challenges of flooding in their areas, including the hon. Member for West Lancashire (Rosie Cooper), who now wants to intervene.

[Rosie Cooper (West Lancashire) (Lab)]

Will the Minister look at the major builders, such as Redrow? They connect new homes into the system knowing that they should include one-way valves and so on, but they do not. That causes the system to flood, leading to water bill payers paying the cost. Developers should be paying the bill, not putting new homes at risk.

[Dr Coffey]

The hon. Lady speaks with passion on this matter because it has affected properties in her constituency. I stress to her and to my right hon. Friend the Member for Wokingham (John Redwood) that the Environment Agency does work with local councils. The guidance for new developments in the national planning policy framework is clear. Not only has the Environment Agency’s advice been accepted in 98% of applications, but there is a clear duty to consider the risk to existing housing stock. I am aware of the specific situation to which the hon. Member for West Lancashire (Rosie Cooper) refers, and I have passed it on to the Department for Communities and Local Government so that it can consider how to make things clear both in planning permission and in planning enforcement.

[Angela Smith]

I am pleased to hear about those representations to the DCLG. Will the Minister also make representations about making the use of sustainable drainage systems mandatory in new developments?

[Dr Coffey]

Councils are expected to do that for developments of 10 homes or more, and I hope that the hon. Lady will see progress in her local area. She referred to the situation in Sheffield earlier, and I can assure her that that was not what I heard when I met businesses and people to talk about the potential future scheme in Sheffield. However, one outcome of the national flood resilience review is that we want Sheffield to be a pioneer in how we bring in private investment.

[Angela Smith]

rose—

[Dr Coffey]

I will not give way because I need to make progress and to discuss other important matters to which other hon. Members referred.

Returning to funding and the estimates, this Government continue to play a key role in improving the protection of those at risk of flood. The historic £2.5 billion over six years to better protect more than 300,000 properties from flooding and coastal erosion is an important increase. A key change is that, instead of the annual budget and the hand-to-mouth existence whereby the Environment Agency was not sure whether a project would be finished, a long-term approach to spending allows the Environment Agency to do the appropriate planning and get on with work instead of guessing how long something will take. We have also increased maintenance spending in real terms over this Parliament to over £1 billion.

The hon. Member for Wakefield (Mary Creagh) referred to partnership funding. I want to point out that it used to be that a scheme would either get all the funding or nothing. There was no way for a wider range of schemes to be covered. I recognise what she said about the extent of other public sector sources of money, but it matters that LEPs can and have made bids in order to increase economic development and are able to partner that funding. I listened carefully to what the hon. Member for Rochdale (Simon Danczuk) said and I will follow up on the issue he raised.

I welcome the support for the use of natural flood risk management and the catchment-based approach that we are developing to prevent floods or to mitigate them where they do occur. I am pleased that my hon. Friend the Member for Tiverton and Honiton welcomed the fact that we are introducing a new reporting measure on natural flood management in future spending years from 2018-19. We have allocated a further £15 million specifically for natural flood management schemes. I have not yet seen the candidates for those schemes, but the Environment Agency is working them up and I am aware of the Environment, Food and Rural Affairs Committee’s recommendation of one catchment scale to test out the principles. That approach is already being used in some flood prevention schemes, but it is right to have appropriate criteria for measuring.

On planning for future resilience, the hon. Member for Wakefield referred to the Environmental Audit Committee’s report and the House should be aware that we are now better prepared to deal with such issues. I am glad that my hon. Friend the Member for Tiverton and Honiton said that I am unable to change the weather—I am certainly not divine in that regard—but we are working hard to ensure that the lessons of previous floods feed into the national flood resilience review. I have chaired weekly meetings, which have only just finished, to get progress updates on what is happening with the different infrastructure providers. We have also re-established the inter-ministerial group on flooding, which meets quarterly for a broader response to flood prevention.

We have allowed the Environment Agency to invest in mobile flood defences. It now has 25 miles of temporary defences and half a million sandbags located across seven key areas, and it can deploy them flexibly around the country. The Army has also been made available. Troops were deployed in Lincolnshire and Norfolk at the request of the local resilience forums, but Suffolk and Essex decided that they did not need the help of the armed forces in the recent coastal surge. Overall, the country will be better protected and services for our communities will be more resilient to flooding. Over the next year, we intend to focus on surface water, which is a significant source of flooding, particularly in cities and urban areas. Again, that will involve collaboration between the Environment Agency, lead local flood authorities, the water sector, and other stakeholders with an interest in managing the risk.

On working together, we all recognise that flooding affects many aspects of our lives. We carefully considered the report’s recommendations on structures, but we do not agree that there is a need for substantial change—that does not mean to say that there are no ways to make it work even better. The local flood risk management action plan, which the Government published on 24 January, is a good example, and it aims to promote best practice and enable all lead local flood authorities to carry out their responsibilities as effectively and efficiently as possible. Eight councils have not started their plan, and I have written to them indicating that, if some action is not undertaken by the end of March, we will use our powers to get the plans going for them.

We should recognise that the current system means that, since 2005—stretching back into the last Labour Government—more than 500,000 properties are better defended today. I want to get it across that, right now, structural change would get in the way of delivering the flood prevention, resilience and other measures that will be undertaken over the next few years. Again, I am not convinced that just changing the name of who does what will improve the way that different bodies work together.

On the fire services, to which the hon. Member for Poplar and Limehouse (Jim Fitzpatrick) referred, I can reaffirm that the Government have no plans for a statutory duty to deal with flooding. Fire services already respond to flooding as part of their general duties under the Fire and Rescue Services Act 2004 and the Civil Contingencies Act 2004 and in response to the risks set out in their integrated risk management plans. I pay tribute to those fire authorities that moved around the country following the recent coastal surge. It was well done, and in particular I saw the firefighters from Hampshire who came up to help Suffolk and Norfolk. That shows that the system is working well.

[Jim Fitzpatrick]

I recognise that the Government do not intend to move on this matter this instant, but does the Minister accept the statistic I quoted that the number of firefighters in the UK has reduced by 7,000 in the past seven years alone? There is no statutory duty, so responding to flooding is not a role that the fire service legally has to carry out. Will she keep that under close review and talk to her colleagues in the Home Office about making sure that numbers do not fall any or much further? Otherwise the fire services will not have the wherewithal to do the job that we all expect them to do.

[Dr Coffey]

I am cognisant of the fact that, certainly in my own area, there are fewer firefighters than there were some years ago. I do not have a single full-time firefighter in my constituency of 300 square miles, and this is an opportunity to pay tribute to the retained firefighters who help their communities. I assure the hon. Gentleman that there have been conversations with the DCLG and, now, the Home Office.

I have covered the point that we expect sustainable drainage in new developments. On governance, I flag up the role of the regional flood and coastal board, and a lot of that work is covered by the regional flood and coastal committees, which comprise a number of different stakeholders.

Several hon. Members raised the issue of insurance. The Flood Re scheme has been a good success, but I recognise what Members said about businesses, which is why we have worked hard to get the British Insurance Brokers Association to bring a product to market. I encourage all hon. Members to make businesses aware of that fact. If people feel that, having been offered a quotation for a specialist policy, they are still struggling, I would like to be made aware of it. I want to look at that in detail, but I am not able to promise today that we will have another Flood Re for businesses because the basis of Flood Re is that it is time-limited. It is a principle of general taxation that we share resources across the country and, to some extent, that is what has been extended with the Flood Re scheme, through which every insurance policy carries a premium to help with flooding.

I recently visited Mytholmroyd in the Calder valley, and some businesses there are moving. Admittedly they are moving about 200 yards, but they are moving and appropriate defences are being established.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

The Minister asked for examples. Topcliffe Mill in my constituency is a development of 12 apartments that currently has an insurance premium of more than £30,000 because of flooding. Although I can understand that commercial schemes are seen to be a market opportunity for commercial insurance companies, in many cases they are not. Topcliffe Mill is a case in point. I would be delighted if she looked at that particular case.

[Dr Coffey]

The point about leasehold properties is that they tend to be owned by the freehold or management company, which is why they come under the commercial area. If my hon. Friend wants to write to me with more details, I will look into it.

Of course I will be delighted to meet my hon. Friend the Member for Castle Point (Rebecca Harris)—I have met many other Members. It is good of the hon. Member for Louth and Horncastle (Victoria Atkins) to point out the role of emergency services in her area. I hope that I have answered some of the queries raised by the hon. Member for York Central (Rachael Maskell) about businesses. I might not have answered them to her satisfaction, but I point out that Flood Re did not apply to businesses after 2009 because that was when all the rules came in to discourage building on floodplains, and we should not reward them with flood insurance as a consequence of doing that.

In answer to the hon. Member for Dumfries and Galloway (Richard Arkless), we have a statutory basis for the flood management plan in this country, too.

[Rachael Maskell]

Will the Minister give way?

[Dr Coffey]

I will not.

I am sure that the hon. Gentleman is aware that the Procedure Committee is undertaking an inquiry into the estimates procedure.

Finally, the hon. Member for Workington will be aware that the Cumbria flood action plan was supported by many local communities. I have met, for example, the Keswick flood action group three times since becoming the responsible Minister, and I have to admit that, at times, I have encouraged a little less conversation and a little more action from the Environment Agency. It is important that we get on with some of these schemes, recognising that we are not going to please everybody with every single design. All I know is that people will be better protected than they were this time last year, and that that will continue right across the country.

I commend the estimates in the name of DEFRA to be supported in the votes tomorrow night.