Tim Worstall

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Environment Agency’s inflation prediction

January 30th, 2010 · 3 Comments

Interesting:

More than half a million homes are at “significant” risk of flooding and the cost of protecting them will double to £1bn a year by 2035, according to the latest data from the Environment Agency (EA).

Current spending is about £570 million a year. If costs remained static in real terms then that cost, at 2.5% inflation, would be a £1 billion in 2035.

Therefore the EA is predicting 2.5% inflation over the next 25 years.

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Tags: Economics

3 responses so far ↓

  • 1 Kevin B // Jan 30, 2010 at 3:27 pm

    Is 2035 the new 2012? I ask because what with all the glaciers going by then and now all this flooding happening I figure someone must have recalculated the Mayan calander.

  • 2 Monty // Jan 30, 2010 at 5:22 pm

    But the technology for flood prevention/mitigation is improving. And it is very difficult to take that into account.

  • 3 Brian, follower of Deornoth // Jan 30, 2010 at 6:24 pm

    Sadly, Monty, the technology the Environment Agency employs for flood prevention, namely cretinous regulation and rapacious taxation, have not improved and show no signs of improving.

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