ABI: Floods and water bill welcome

The Association of British Insurers' (ABI) director general, Stephen Haddrill, says the government's decision to back it on the need for flooding legislation is welcome.

"The ABI looks for a long-term flood management strategy, with an investment programme to match the risk of flooding from rivers, coasts and drainage," he said.

"This is needed urgently. The future availability and affordability of flood insurance depends on the adequate management of the growing flood risk."

On the banking reform bill, Mr Haddrill said the announcement for further consultation was a "sensible step".

"We need to get this right and this will allow valuable breathing space in the process to avoid rushed legislation which could have hurt London's financial standing.

"We do not feel that the first consultation proved the case for the 'special resolution regime' as proposed. We also believe that a higher level of deposit protection, and prefunding a deposit protection scheme, are not justified."