The UK government has announced that its flood risk management budget for 2013 will be £294 million and that it will include 93 new flood defences, which will create thousands of new jobs and facilitate economic growth by protecting businesses, reports The Guardian. However, the Labour party is concerned that this spending is £50m lower compared to previous years. In addition, although yearly rainfall has been on the increase and floods are more frequent, insurance companies and the government has not yet reached consensus on renewing the contract minimising flood risk to homes, which is about to end in June. Insurers urge authorities to invest in flood defenses to keep the industry's risk low.
“Flooding is the greatest natural threat facing the UK and the risk is rising, so political consensus on how we effectively adapt to it is essential," said Nick Starling, director of general insurance at the Association of British Insurers.