The UK’s flood funding crisis could see insurance cover completely dry up following continued government funding cuts to the struggling scheme.

The cuts have already caused many insurers to reassess the way flood is covered, and under a new proposed scheme businesses and individuals may be asked to contribute more towards flood defences.

JLT Partner for European Real Estate Bill Gloyn told insuranceNEWS.com.au that a 17% reduction in flood defence expenditure hasn’t won many positive comments.

He says the UK Government is trying to “pass the buck” by putting the onus on developers, property owners and individuals to pitch in to help foot the bill.

A Government committee says those “who will directly benefit from the schemes, such as local businesses and community groups, will have the opportunity for further voluntary investment”.

Mr Gloyn believes this move is a bid to “localise the responsibility”.

“In my opinion, shared by almost everyone else, this doesn’t work when one is considering something like flood – which doesn’t respect any geographical, political or even national boundaries,” he told insuranceNEWS.com.au.

The new funding arrangements are due to be implemented following a review of consultation submissions on April 1, 2012.