A new report published today by the Department for Environment, Food and Rural Affairs has ranked flooding as the worst climate change threat facing the UK – with annual damages of up to £12 billion.

The Climate Change Risk Assessment (CCRA) highlights the top 100 challenges to the UK and the economy of a changing climate and provides the most compelling evidence yet of the need to increase resilience.

The risks of flooding are projected to increase significantly across the UK. New analysis for England and Wales show that if no further plans were made to adapt to changing flood risks, by the 2080s due the effects of climate change and population growth annual damages to buildings and property could reach between £2.1billion – £12billion, compared to current costs of £1.2billion.

Defra has introduced a new method of allocating funding for flood defences so that more communities will benefit from flood protection, and the Department is working with the ABI to ensure that flood insurance remains widely available after the current agreement between Government and insurers expires in 2013. As part of the discussions, Defra is considering whether there are feasible, value for money ways of targeting funding support to those at highest flood risk and less able to pay.

The report also says that climate change is placing increasing pressure on the UK’s water resources. The CCRA projects that without action to improve water resources, there could be major supply shortages by the 2050s in parts of the north, south and east of England with the greatest challenge in the Thames River basin. Defra published a Water White Paper last year which included a package of measures to address water supply shortages, and to ensure the water industry is more resilient to future challenges.

Speaking at the launch of the CCRA, Environment Secretary Caroline Spelman said:

“This world class research provides the most comprehensive case yet on why we need to take action to adapt the UK and our economy to the impacts of climate change. It shows what life could be like if we stopped our preparations now, and the consequences such a decision would mean for our economic stability.

“The Climate Change Risk Assessment will be vital in helping us to understand what we need to do to stop these threats becoming a reality. In doing so there is also great potential for growth through UK firms developing innovative products and services tailored to meet the global climate challenges.”

A Government report published alongside the CCRA highlights the current and future policies already in place and gives details of plans which will address some of the risks identified.

The Government has also today announced a National Adaptation Programme (NAP) that will prepare the UK for the effects of climate change, including the risks set out in the CCRA. People are encouraged to give their views through a new website on the action needed to tackle the implications of climate change where they live and work. The CCRA evidence will be used to develop the Programme  that will set out timescales for the actions Government will take to meet the challenges of climate change.

The development of the NAP starts today and Caroline Spelman has called on the public to give their views on what the priorities areas for action should be. These views will help shape the final NAP, which will be published in 2013.

Country may sleepwalk into disaster

Commenting on the new report, Lord John Krebs, Chair of the Adaptation Sub-Committee of the Committee on Climate Change, said:

“Without an effective plan to prepare for the risks from climate change the country may sleepwalk into disaster. This report represents an important first step in the process and demonstrates why the UK needs to take action to adapt now. The work of my Committee has found that by taking steps to manage these risks, the UK can reduce the costs of climate change in the future.

“The Government’s forthcoming adaptation programme should tackle barriers to adaptation so that local communities, businesses and households can take action to prepare.”