UK Councils Drowning in Costs as Flood Clean-Up Hits £566 Million a Year

Floods are hitting the UK in a more complex way than ever, and the financial strain on local councils is growing, making it impossible to ignore. New analysis from the Infrastructure Policy Advancement think tank, part of Bentley Systems, reveals that flood clean-up and recovery are costing councils across the country up to £566 million every year. Behind these rising costs are outdated drainage systems and an alarming increase in extreme weather events.

The IPA reviewed data from 382 local authorities, including district, borough and county councils, and found that on average, each one experiences 43 separate flood events annually. That’s nearly one incident every week for many communities.

Even more concerning, 57 per cent of councils reported that their sewer systems have been overwhelmed at least once in the past decade. This isn’t just a maintenance issue; it signals a growing infrastructure crisis, one that’s being stretched thin by changing climate patterns.

For those councils that track the financial impact of flooding, the average cost of clean-up and repair after a single flood sits at just over £100,000. Some are dealing with bills that climb as high as £4.3 million annually. When those numbers are projected across all councils that monitor floods, the national flood recovery bill hits a staggering £566 million.

Despite the scale of the crisis, council budgets are shrinking. In 2025, the average flood remediation budget is just £637,559, a 12 per cent drop from the previous year’s figure of £728,170. That means a single major flood could wipe out more than 16 per cent of a council’s entire yearly budget for flood recovery.

And yet, most councils aren’t standing still. A full 92 per cent say they’re either rolling out or preparing to launch flood prevention measures. Leading the way are Sustainable Drainage Systems, also known as SuDS. These nature-based solutions aim to replicate the natural flow of water. Consider permeable paving that allows rain to soak through instead of pooling, green roofs that absorb rainfall, rain gardens, and ponds that collect runoff. Currently, 74 per cent of councils require SuDS in all new developments, while 64 per cent are installing their systems on public land.

Councils are also turning to green infrastructure. Approximately 59 per cent are expanding green spaces to absorb rainwater, 59 per cent are planting more trees, 55 per cent are intensifying drainage maintenance, and 38 per cent are collaborating with property owners to reduce paved surfaces that increase runoff.

Still, there’s a significant problem: money. Recent research shows UK councils are staring down a £27 billion funding gap. Many have developed robust action plans for both climate adaptation and decarbonisation, but the resources to implement them aren’t there.

London’s Climate Strategy Under Scrutiny:

Meanwhile, in the capital, concerns are mounting that London’s new planning framework is failing to keep up with climate threats. The Mayor of London’s proposed London Plan, a long-term roadmap that will guide development over the next two decades, is drawing criticism for overlooking the realities of climate adaptation.

The Grantham Research Institute on Climate Change and the Environment at LSE has sounded the alarm. According to their submission, the draft plan barely acknowledges the 2024 London Climate Resilience Review, referencing it just twice across 76 pages.

Their concern is that without a stronger focus on adaptation, London could be left dangerously vulnerable to floods, heatwaves, and rising inequality. Vulnerable populations, including low-income communities, older people, children and people with disabilities, are likely to bear the brunt of these climate shocks.

Bob Ward, Chair of the London Climate Ready Partnership and author of the submission, warns that London’s economy could suffer long-term damage. The review estimates that climate-related risks could shave 2 to 3 per cent off London’s GDP every year by the 2050s, with even steeper losses expected later in the century.

Ward also criticised the plan’s willingness to allow development on green belt land. Doing so, he argues, would erode natural buffers against extreme weather and worsen the urban heat island effect. He noted the government’s proposal to create new "Grey Belt" areas, such as disused car parks within the green belt, but cautioned that such moves could open the door to further ecological degradation.

He stressed the need for urgent investment in building homes and offices that can handle the climate of tomorrow. Without it, future generations will face enormous costs to retrofit vulnerable buildings or repair preventable damage.

Right now, London’s retrofitting rates are just 10 per cent of what’s needed. If the city aims to upgrade the energy efficiency of more than half of its housing stock by 2030, serious intervention and new funding will be essential.

“The Mayor showed leadership by commissioning the resilience review in 2023,” the submission states, “but the new London Plan needs to reflect its recommendations clearly.”