§ Mr. Kidney
To ask the Chancellor of the Exchequer what assessment he has made of the scope for the application of economic instruments in promoting the development of flood defences. 524W
§ Ruth Kelly
The 2001 Flood and Coastal Defence Funding Review recommended that the Government should consider the application of economic instruments as part of alternative funding streams for flood defence. We agree with the review's analysis and have therefore asked Defra to work up proposals as part of their Spending Review 2002 commitments. They have since consulted on a range of options, including a Floodplain Development Connection Charge to be levied on new developments in the floodplain. The work on this is still at a very early stage. and will be taken forward as part of Defra's new flood management strategy.