THE British insurance industry is demanding a huge increase in the amount spent on flood defences at a time when the Government is actually slashing funds for such work.

Global warming is increasing the risks of flood damage to homes both on the coast and in inland river valleys - North Yorkshire is at risk from both - and the insurance industry is asking that spending on new defences should be increased from £500 million to £750 million.

The demand comes, however, at a time when the Treasury has slashed funds to the environment department Defra, which is already facing huge fines from the European Union for failing to pay English farm payments on time.

North Yorkshire rivers are particularly prone to flooding because they often rise high in the Pennines where torrential floods can build up in a matter of hours in heavy rain. Facing regular flooding are Boroughbridge on the River Ure, Malton on the Derwent, York on the Ouse and several small towns on the Aire between Skipton and Keighley.

Thousands of property owners in such areas face stinging increases in their insurance premiums and some are facing the possibility of having insurance refused altogether, with disastrous knock-on effects on their property values.