Flood tax for 2 million homes

MORE than two million homeowners living near rivers or the sea could have to pay a new flood tax, ministers announced on Wednesday. They plan a levy of up to £60 to fund better flood defences following criticisms that Britain is ill-prepared for deluges of rainfall like those seen last winter.

The tax would come on top of soaring insurance premiums and a threat from insurers to blacklist homes in flood risk areas. Proposals announced by Floods Minister Elliot Morley involve identifying river catchment areas and taxing people living in the flood plains.

The charge is set to replace the sum added on to council tax for homes at risk after criticism that local authorities were not giving the revenue to flood defences.

Meanwhile, flood risk families face being blacklisted by insurers amid claims that up to two million homes and 136,000 businesses worth £215bn are at risk without better protection. Insurers have demanded that annual spending, running at £66m, needs to more than double to £145m a year.

On Wednesday night, Mary Francis, director-general of the Association of British Insurers, said: 'This week's floods have been another powerful reminder of the urgent need to improve flood defences.'