Engineering news
Flooding over the course of last year could have cost the economy up to £600 million, according to research by the Environment Agency.
The Environment Agency (EA) said that the estimated damage to all property in England came to £277 million, while the impact on businesses was £200 million, including £84 million of property damage.
Other indirect impacts such as lost working days hit companies and local economies by approximately £33 million. Disruption to transport, communications and utility links cost up to £82 million, the EA found.
Every affected business suffered an average to the tune of £60,000, but flood defences protected 200,000 properties – worth up to £1.7 billion to the UK economy, the figures revealed.
The agency is warning of an increased likelihood of flooding this winter, and urges businesses to sign up to receive flood warnings so that they can make a business plan to cope with periods of extreme weather conditions.
About 50% of managers reported to the Chartered Management Institute that severe weather caused disruption to their organisation in the wake of last year's floods, while nearly two-thirds of UK businesses said they suffered supply chain problems because of the extreme conditions.
Director of flood and coastal risk management at the Environment Agency, David Rooke, said: “Extreme events, such as the flooding and drought in 2012, are likely to become more frequent and more severe in the coming decades.
“It is vital that businesses plan for weather impacts to safeguard their operations today and in the future. Every £1 spent on preventing flooding saves £8 in repairing damage.”
The EA said that the good news is that more businesses are coming forward to contribute to local flood defences that would otherwise not get full government funding.
For example, Swiss food manufacturer Nestlé contributed almost £2 million for new defences at the River Dove, near the firm's factory at Tutbury in Staffordshire, to protect 1,600 homes and businesses. As a result of the improved flood protection Nestlé said that it has been able to expand its coffee operations in Staffordshire, creating 400 new jobs.
Other partnership funding schemes include a £50 million project in Leeds which will protect 500 businesses and 3,000 city centre flats. The scheme has secured £31 million of funding from the Environment Agency and government, as well as £10 million from the Leeds City Council.
Since 2011, the partnership funding initiative has attracted nearly £150 million of external funding, on top of government's £2.3 billion investment for flood defences.
Chief secretary to the Treasury Danny Alexander, said: “The government is getting on with building better flood defences across the country.
“At the Spending Round we set out long-term funding for flood defences, protecting over 300,000 homes over the next six years, giving homeowners and businesses security, and unlocking new development and job opportunities.
“The private sector is also doing its part with companies across the UK contributing £148 million to the government's partnership funding scheme, so that local communities and businesses can share the benefit of better defences, creating a stronger economy and a fairer society for us all.”