My hon. Friend is absolutely right. She has joined me on the Environmental Audit Committee, and her expertise on this subject has been invaluable.
The Committee on Climate Change warns that increased flood risk affects property values and business revenues, and, in extreme cases, threatens the viability of some communities. A much worse scenario is set out in the climate change risk assessment: if global temperatures rise by 4° above pre-industrial levels, the number of UK households predicted to be at significant risk of flooding will double from 860,000 today to 1.9 million in 2050. Those are very stark and very concerning figures.
I know from my own constituency the misery that flooding can bring. In the 2007 floods, 1,000 homes in Wakefield were flooded. As my hon. Friend the Member for Wolverhampton South West (Rob Marris) said, successive Government have cut funding over the years,
and 2007 was one such year—it was Labour that cut the funding that year. Our flood defence programme was cut, and I lobbied very hard to get that money reinstated. We got £15 million for flood defences to protect our cities. Thanks to those defences, which were completed in 2012, Wakefield managed to escape the worst of the 2015 storms. That was really, really important.
Nationally, the Government have taken a rollercoaster approach to funding. During the previous Parliament, flood funding was initially cut by 27%. The money was then reinstated after the 2013-14 floods. Mark Worsfield’s review of flood defences, which was published by my Committee, showed that those Government cuts had resulted in a decline in the condition of critical flood defences. It showed that the proportion of key flood defence assets that met the Environment Agency’s required condition fell from 99% in 2011-12 to 94% in 2013-14. Therefore, in three years we had a pretty large decline in the condition of mission critical flood defence assets, which posed an unacceptable risk for communities—I am talking about those communities that think that they have their flood defences in place and that they can sleep easy in their beds at night when it is raining. The more flood defences that the Government build, the more they need to increase the maintenance budgets. We cannot keep spending more on capital and then cut the revenue budget.
The failure of the Foss Barrier in York shows what happens when critical flood assets fail. It was built on the cheap in the 1980s. It was not built to the correct height and it had just two mechanisms. Once one of those mechanisms failed, the water overtopped its banks and reached the electrical switch rooms. Local flood engineers were left with no choice but to raise the barrier with very little notice, which led to hundreds of homes being flooded. I know that my hon. Friend the Member for York Central (Rachael Maskell) will have a great deal to say on that.
The Government are talking about spending more on flood defences. One mechanism they are using is the so-called partnership funding. My Committee looked into the sources of that funding and found that 85% of it was coming from public sector bodies. Therefore, the Government are cutting funds centrally, and then putting pressure on hard-pressed local councils, which have seen their budgets fall by 30% over the past seven years, to boost their flood defence assets. When they say, “Do you fancy stomping up for some flood defence assets for your town or city.” those councils are left with no choice but to say yes. Just 15% of the money is coming from the private sector. Of course, it is not a level playing field, because any private sector company that gives the Government money for partnership funding gets tax relief on that so-called donation.
At the start of each spending review, the Government announce how much they will spend. In 2015, they allocated £2.5 billion for flood defences, but after storms Desmond, Eva and Frank, the Government announced, in Budget 2016, that the funding was not adequate and that they were going to invest an extra £700 million. Once again, we have this stop-start approach—cut when it is dry and spend when it is raining. The hon. Member for Penrith and The Border (Rory Stewart), who was then a Minister in the Department for Environment, Food and Rural Affairs, said that the extra money would be spent according to a “political calculation”.