Flooded businesses 'still suffering'

Many businesses affected by this summer's heavy flooding are still waiting for compensation, according to the Liberal Democrat MP for Cheltenham.

MP Martin Horwood's comments came during questions in the House of Commons on Thursday. He asked Environment Secretary Hilary Benn whether insurers would be able to expedite flood payments, adding that many businesses "are still waiting for compensation months later, with an obvious impact on their cash flow, their bank charges and the interest that they pay on their overdrafts."

In reply, Mr Benn said that "the insurance industry responded well by-and-large in terms of sending assessors... quite a lot has already been paid out".

Mr Horwood asked the minister if it was "wise to keep building planned houses on areas that flooded in July", and asked whether insurance for such properties will remain affordable.

Mr Benn responded: "We are working together to ensure the continued widespread availability of flood insurance cover through [the Association of British Insurers (ABI)'s] statement of principles."

The statement of principles sets out that insurers will continue to offer flood cover for properties that are at risk of flooding less often than every 75 years, and others in areas where improvements to flood defences are planned. In July, responding to calls from the ABI and to this summer's flooding, Mr Benn announced an increase to flood defence spending.