Autumn Statement: Firms to get tax breaks for flood defences

Shadow Chancellor Ed Balls accuses the Government of repeating old infrastructure plans

Homes underwater along the banks of the River Severn in Worcester (Getty Images)

Businesses will be given tax relief for investing in flood defences, the construction of which has been at the centre of the Coalition’s infrastructure plans this week.

George Osborne said today that policies designed to boost infrastructure, such as this one, are the reasons why the UK is attracting “more investment from around the world than any other country in Europe”.

During Prime Minister’s Questions just before the Chancellor’s speech, David Cameron said the Government had been “investing in our transport infrastructure, building the flood defences that the country needs, putting in place all the infrastructure – whether it’s ports, airports, energy – that a modern economy needs”.

The Prime Minister added the infrastructure was needed to “sustain a level of growth that can deliver the level of prosperity and security that the British people deserve”.

But shadow Chancellor Ed Balls accused the Government of repeating old infrastructure plans with “preheated announcements” this week. He pointed out that construction output is down 11 per cent since the Coalition came to power in 2010.