Councils have been urged to spell out the economic benefits of climate change adaptation, as the Government axed funding for half of the flood defence schemes in line for cash over the next financial year.

The Department for Environment, Food and Rural Affairs has committed £521m to 356 schemes in 2011/12, despite initial proposals that 630 projects be funded.

The department also revealed no funding plans were currently in place for 2012-2015 – which throws the future of a further 1,300 flood defence schemes into doubt.

The move leaves local authority stakeholders awaiting the outcome of a current consultation on funding reforms.

Environment minister, Richard Benyon, said: ‘Schemes which will contribute the most in terms of protection to households and economic benefit per pound spent have been prioritised.’

But shadow environment secretary, Mary Creagh, attacked the plans, and claimed the Government was taking a risk with homes and businesses.

‘People across the country face an uncertain future as they wait until next year to hear if their schemes will proceed or be cancelled,’ she said.

New research has also suggested the Government’s decision to scrap National Indicator 188 (NI188) could put such schemes in jeopardy. NI188 was designed to help local authorities assess and address the risks and opportunities presented by a changing climate, as well as provide a tool for measuring preparedness.

A poll of local authorities – by the UK Climate Impacts Programme (UKCIP) – revealed the indicator was driving adaptation efforts with more than three-quarters (77.5%) of councils claiming it spurred efforts.

But the research also found almost one-third (29.5%) of authorities would now do less in the light of local government secretary Eric Pickles’ decision to scrap NI188. A further 10.3% admitted they would now do nothing.

Speaking at an LGA conference last week, David Thompson, a senior analyst at the Committee on Climate Change’s (CCC) adaptation sub-committee, underlined the crucial role local government was playing at the forefront of efforts to build the nation’s resilience to a changing climate.

Mr Thompson urged environment chiefs to use the financial benefits of investing in schemes now, in order to improve their priority at chief executive level. He said: ‘Making the economic case for adaptation is key. One of the first starting points for making the case is linking the expected costs of climate impacts.’

Mr Thompson cited the 2007 flooding – which cost the economy £3bn – as a good example.

‘Councils are responsible for flood risk-management strategies, co-ordinating responses with emergency services and contingency planning. And we know adaptation can reduce these costs,’ he said.

In the aftermath of the 2005 floods, which devastated Carlisle, causing three deaths, affecting 1,800 properties and costing the economy £250m. Carlisle City Council’s adaptation work – to improve defences and the co-ordination of emergency responses – meant that in 2009, when the city was subject to twice as much rainfall in one day, problems were avoided.