Flooded houseLabour has demanded to know if the Government would renew an agreement on flooding with home insurers as households in England brace for another night of torrential rain.

Shadow environment secretary Mary Creagh accused the Government of "lighting a fuse" by failing to renew a statement of principles on flooding with insurers, while cutting money for flood defences.

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But Environment Secretary Caroline Spelman insisted Labour was to blame for the lapsed agreement with insurers and she was working to repair the situation.

Speaking during Defra questions in the Commons, Ms Creagh said: "We are still waiting to hear from you whether any money (from the flood recovery grant) will go to people who have been left homeless and destitute by these floods.

"You lit the fuse on the expiry of the statement of principles by cutting flood defence spending by 27%. You promised an update on flood insurance in the spring, you talked about vouchers, and now you're finally talking about insurance. Will you get a deal with the Treasury before recess?"

Mrs Spelman said: "I will give a detailed reply before recess. We are close to negotiations - as a formal commercial negotiator with experience, I know you don't provide a running commentary on the state of negotiations."

Ms Creagh followed up: "Homes across the country are facing another night of severe rain with more potentially at risk of flooding. People are very, very anxious and upset at your total lack of progress. You haven't given an answer.

"The deal runs out on July 1, will you get a deal with the Treasury, will it happen before the recess, yes or no?"

Mrs Spelman replied: "How can I have lit a fuse underneath this when I am not a Labour politician and it was the Labour government who agreed with the Association of British Insurers they would not renew the statement of principles.

"That's when the fuse was lit and they placed a smoking bomb in the same container which said 'sorry, no money left'. We have found a way forward which will provide for affordability and universality of flood insurance."

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