Government moves to strengthen and clarify planning guidance for proposed new property developments will help ensure that new homes can continue to obtain flood insurance the ABI (Association of British Insurers) said today.

In its response to the Kate Barker review of housing supply, the Government have recognised  ABI concerns by:

·        Further strengthening planning guidance in a new Planning Policy Statement, making the Environment Agency a statutory consultee.

·        Reviewing any proposed major developments where the Environment Agency objects on flood risk grounds.

“The Government’s ambitious plans for new home developments will only be sustainable if the flood risk is adequately managed”, said Jane Milne, the ABI’s Head of Household and Property.

“ A strong, consistent and clear planning process is essential to ensure sustainable new communities and the continued availability of affordable flood insurance. ABI research has shown that, in the South East alone, plans for new developments could increase the annual flood cost by £55million. The Government’s intention to further strengthen the planning process will help deliver truly sustainable communities, with residents having full access to flood insurance.” 

ABI also welcomed Defra’s announcement today that next year’s flood defence investments were fully allocated, and that plans for 2007 –08 were in hand.

Jane Milne said:

“ It is vital that these funds are targeted on existing communities facing flood risk, and that we do not store up problems for the future by building in the wrong places.”

- ENDS -

Notes for Editors

1.            Enquiries to:       

         Malcolm Tarling    020 7216 7410 (Mobile: 07776 147 667)

         Lucy Butler            020 7216 7411 (Mobile: 07712 841 184)

         Jonathan French   020 7216 7392 (Mobile: 07958 330 480)

        Alan Leaman         020 7216 7440 (Mobile: 07957 482 330)

2.          The ABI is the trade association for Britain’s insurance industry. Its nearly 400 member companies provide over 94% of the insurance business in the UK. It represents insurance companies to the Government, and to the regulatory and other agencies, and is an influential voice on public policy and financial services issues. ABI member companies hold more than a fifth of all investments traded on the London Stock Exchange, on behalf of millions of pensioners and savers.

3.      An ISDN line is available for broadcasts.

Notes