The Environment Agency needs £150m a year to maintain assets
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Flood defence schemes have been postponed due to government funding cutbacks, it is claimed.
The Environment Agency says it will need to spend £750m a year over the next three years to protect areas threatened by floods.
The amount offered by the government falls short, meaning a number of projects have been put on hold.
These include a £100m scheme for Leeds, and plans to replace York's defences, which have been deemed inadequate.
The limited funding comes despite insurers, the National Audit Office and the Environment Agency warning that more spending on flood defences is needed.
Limited funding
Proposed flood schemes are graded according to their urgency. The limited funding means the points needed to proceed has increased, seeing many schemes have dropped off the list.
Andrew Waller, a member of the Environment Agency's north-east region flood defence committee said: "We need to be spending a lot more than we are now.
"Flood defence spending is not keeping pace with increased demand for flood defences due to climate change.
"We will end up with a situation where more and more areas are not being covered."
In fact, the Environment Agency estimates that it needs £150m a year over the next ten years just to bring its existing assets up to standard.
Tim Kersley, head of asset management at the agency, said it is doing a lot with its funding.
But he said flood protection needs are increasing over and above the budget increases it has received.
He said: "All commentators agree we need more funding to adequately protect the community.
"We currently invest about £500m per year on flood risk management. Over the next three years we need to spend three-quarters of a billion per year."
Climate change
"As the impacts of climate change bites we will need to spend nearer £1bn per year."
To deal with climate change by 2010, with inflation, the agency needs to invest £750m a year on flood risk management, the Environment Agency says.
The flood risk management budget has been restored, with an additional £8m, Mr Kersley added, which has had a 'real' effect on the ground.
Since April 2003 an extra 325,000 people are now protected by flood defences, and there is greatly improved flood mapping and warning systems.