Councils must get tough on protecting people in flood risk areas, Minister for Planning Caroline Flint has announced.

New guidance published gives councils five clear steps for maximising the planning rules to better manage flood risks in their area.

It is now compulsory to consult with the Environment Agency on planning applications in flood risk areas and where councils ignore their advice on major developments the Government will intervene.

ABI research has found that if councils apply flood planning rules effectively the cost of flooding could be reduced by more than half in the Thames Gateway and by 96% in other growth areas. Other independent research suggested it could cut the annual cost of flood damage by £18 billion.

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Ms Flint said: "We saw very clearly last summer the devastating potential of severe storms. We can't prevent heavy downpours or abandon those already living in flood plains but wherever possible we need to make sure councils are avoiding or reducing the risk of flooding in their communities.

"The Government has put tough planning rules in place for flood risk areas that we need councils to enforce. To help them we are issuing a 5 step guide to planning new homes so councils have no excuse for failing to protect their communities."

Environment Agency Head of Planning Mark Southgate said: "The summer 2007 floods highlighted the severe impact that flooding can have on people and communities. We welcome the Government's policy on planning and flood risk that seeks to steer new development away from high flood risk areas.

"This guide shows examples where local authorities have successfully planned their communities with flood risk in mind. We now need all local authorities to follow this good practice to ensure that new development is fit for a future of climate change."

(CD/JM)