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Councils across England and Wales say that new flooding laws, that will give them responsibility for managing flood risk in their area, are good news but have warned that the new powers will create a funding black hole.

The Floods and Water Management Bill, announced today in the Queen’s Speech, will give councils the lead role they have been calling for in managing surface water in their area. This will see town halls coordinating water companies, the Environment Agency and other local partners to make sure drainage systems work properly and homes are protected.

The Local Government Association, which represents over 350 councils in England and Wales, says the Government’s plans for how councils are meant to pay for the new responsibility is flawed. The Government claims that local authorities will be able to fund the new role with the savings they make when fewer areas are flooded, because they will be better prepared, and also through the savings made by transferring private sewers to water companies.

However, local authorities pay for flood clear up out of money for other services and argue the other savings will be far less than the government predicts. Earlier this year, an influential committee of MPs agreed with councils and urged the government to look again at its funding calculations.

The LGA also says the Government should take urgent action to ensure councils can get the expert engineers, inspectors and planners they need to manage local drainage systems.

Cllr Gary Porter, Chairman of the Local Government Association Environment Board, said:

“Town halls are looking forward to being able to improve local flood management but it should be clear that they will have the funding they need to properly protect people’s homes.

“Improving local flood preparedness and ensuring we do not see a repeat of the devastating floods that occurred in the summer of 2007 is a big priority. Investment now will save the taxpayer more in the future and help create scores of new jobs.

“The government needs to take another look at its calculations. When councils spend money clearing up after floods it comes from budgets for other services, so it is wrong to say that they can pay for this new role by spending less on flood clear up.

“Councils, water companies, the Highways Agency, the Environment Agency and landowners all need to cooperate to make sure drains are working properly. There will need to be additional training courses to develop the new skills needed to manage local flood risk.

”Climate change could mean extreme weather such as flooding happens much more frequently in coming years. If households are to avoid the impact of potentially devastating downpours, better management of local flood risk is essential.”