PRIME Minister Tony Blair has promised to review the controversial rules used for deciding if areas such as Worcester should receive funding for flood defences.

City MP Mike Foster claims the current formula is biased against householders who live in less prosperous areas.

During a Commons exchange, he urged Mr Blair to modernise the economic test to "make it easier to establish flood defence schemes for residents and businesses in places such as Worcester."

Mr Blair replied he could "understand" Mr Foster's concerns about the existing Treasury rule and said he would "look into it".

Effectiveness

"We're looking at ways in which we can improve the effectiveness of the resources that we put in for protection against flooding, but we're increasing those resources significantly, by some £100m or more," said Mr Blair.

"In the end, the important thing is for the Government to make the investment and for local people to make the final decision on how that investment can be best used."

Mr Foster first raised his concern about the Treasury rule with Chancellor Gordon Brown last year. At present, areas which flood have an "economic test" applied to them to see if flood defences would be financially viable.

Significantly, this test is based on property values, Mr Foster says.

The result is that a two-bedroom terraced house near the River Severn, with a lower house price than a similar property at, for example Henley-on-Thames, Oxfordshire, would find it more difficult to pass the economic test.

The MP is backing the Environment Agency in proposing an assessment that includes social impact, health and other criteria.

Mr Foster is also unhappy the current rules fail to take into account disruption to businesses, which was a particular problem when Worcester flooded in 2000.

The main river bridge was closed - effectively cutting the city in half and leading to significant commercial losses for local businesses.