Business & Finance
Departments must join forces to deliver on government flood risk promises, Localis report urges
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Departments must join forces to deliver on government flood risk promises, Localis report urges
Environment and housing ministers must work together to enact promises made in opposition to improve flood defences and boost planning resilience, a new report from think-tank Localis has urged.
In a report published today entitled ‘Plain Dealing Revisited– planning for flood resilience’ the independent place experts set out how in the three years since their original ‘Plain Dealing’ report, sustained housing demand and pressure on local authorities has led to a continuation of development in floodplain areas.
In original research undertaken for their latest report, Localis examined the public planning portals of the 12 English council areas with the highest percentage of properties at risk of flooding during the first half of 2024, finding 7,116 new dwellings in the planning pipeline.
Of these, 1,006 were new permissions[1] for 2024, with the remainder being approvals from previous years continuing to progress through the planning system. In addition, in these high-risk flood areas, some 2,389 new dwellings were granted planning permission on land previously developed or resulting from change-of-use applications, of which 280 were new applications granted this year.
Data collected by Localis in 2021 for the previous Plain Dealing report shows that the same councils granted 1,104 new homes to be built on floodplain land in the first six months of that year. Currently there are no laws against the granting of planning permission for and construction of homes in areas at high risk of flooding, and the Environment Agency compiled 267 instances of homes granted planning permission against their advice on flood risk in the year 2022-23 alone.
Among its key recommendations, Localis calls for new environment secretary Steve Reed to empower the recently established Flood Resilience Taskforce with a remit to not just provide new defences but also review existing schemes and how resilience measures are implemented in the planning system.
The think tank also calls for an urgent uplift in the Environment Agency’s capacity to ensure the maintenance of flood defence assets and to enforce planning regulations.
Localis also recommends that housing secretary Angela Rayner use the Planning and Infrastructure Bill and the revised National Planning Policy Framework to consolidate and reinforce planning resilience measures.
Localis chief executive, Jonathan Werran, said: “Twin government objectives of delivering up to 370,000 new homes a year and enhancing our resilience against flood risk are not of themselves incompatible missions, but will require tightening up and harmonising of policy levers.
“This need for a renewed urgency for joined-up government is especially the case as our research indicates a continuation of planning permissions being granted for new dwellings in areas of such high flood risk.”
Sandy Forsyth, Localis lead clean growth researcher,
said: “As long as new planning consents are being given to homes in flood zones on undeveloped land, people and communities will continue to see compounding risks.
“The time is now for the rules to change, as government sets out to rejuvenate the planning system and plans for a newly invigorated era of housebuilding, so that the built environment can be resilient to current and future environmental hazards.”
Caroline Johnson, claims director of personal lines insurance at Allianz UK, said: “It is concerning to see so many homes being given planning permission in these areas. Floods are traumatic events for householders, who can see their homes ruined and a lifetime’s worth of possessions destroyed.
“The Government has announced ambitious plans to build 1.5m homes over the course of this Parliament, and while we know more new homes are necessary, it is important that they are resilient to floods and bad weather
“Our changing climate means that floods and severe weather are likely to become more common. It is important for national and local planners and developers to work together to prevent unnecessary development in high-risk flood areas and ensure that new homes are more resilient to floods.”
END
Press enquiries:
Jonathan Werran, chief executive, Localis
(Telephone) 0870 448 1530 / (Mobile) 07967 100328 / (Email) [email protected]
Notes to Editors:
- An advance copy of the report is available for download
- About Localis
Localis is an independent think-tank dedicated to issues related to politics, public service reform and localism. We carry out innovative research, hold events and facilitate an ever-growing network of members to stimulate and challenge the current orthodoxy of the governance of the UK.
About Allianz
The Allianz Group is one of the world’s leading insurers and asset managers with around 125 million* private and corporate customers in nearly 70 countries. Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from property, life and health insurance to assistance services to credit insurance and global business insurance. Allianz is one of the world’s largest investors, managing around 741 billion euros** on behalf of its insurance customers. Furthermore, our asset managers PIMCO and Allianz Global Investors manage about 1.8 trillion euros** of third-party assets. Thanks to our systematic integration of ecological and social criteria in our business processes and investment decisions, we are among the leaders in the insurance industry in the Dow Jones Sustainability Index. In 2023, over 157,000 employees achieved total business volume of 161.7 billion euros and an operating profit of 14.7 billion euros for the group.
* Including non-consolidated entities with Allianz customers.
**As of June 30, 2024.
- Key report recommendations
Recommendations
- The Flood Resilience Taskforce should be given an expanded remit to examine the current state of existing flood defences, improve public information and review how effectively resilience measures are implemented in the planning system.
- The Minister for Water and Flooding, currently located within Defra, should be given a joint brief covering Defra and MHCLG, with the responsibility of overseeing the taskforce and implementing its recommendations.
- The Environment Agency must have its capacity greatly improved: to ensure the maintenance of flood defence assets, both public and privately held, and to enforce regulations in planning. The Taskforce should be given a remit to examine how this can be achieved.
- The Taskforce must work to improve the availability and accessibility of data on floodplain development – current transparency measures around planning decisions are not sufficient for understanding aggregate flood-risk across development.
- To help combat poor awareness of flood risk, the Taskforce should work to develop a live system providing responsive flood-risk category certification for new buildings to increase risk awareness among homeowners and occupiers.
The Planning and Infrastructure Bill as well as the revised National Planning Policy Framework present an opportunity to consolidate and reinforce planning resilience measures.
- While it currently exists as a guideline in the NPPF, the sequential test for floodplain development must be made law, to ensure that new development takes place in the most strategically appropriate places for national flood resilience.
- To ensure that an area’s aggregate flood risk is being considered, lead local authorities should be consulted by law on all developments of more than two dwellings on floodplain land, and total permissions of all sizes should be periodically reviewed.
- In the context of greater green belt urbanization, surface water drainage requires specific consideration in the National Planning Policy Framework.
- The Flood Risk Assessment process should be reviewed, ensuring that assessments are fully inclusive of not only dwellings and businesses, but also the surrounding environment and infrastructure, as well as emergency response.
Planning permissions
In Plain Dealing, Localis observed where new, floodplain development was occurring in the twelve local planning authorities with more than ten percent of properties already at a greater than 1 percent risk of flooding, as recorded in 2020.
For the purposes of this report, we have revisited these authorities to assess the ongoing pattern of development in areas at an existing high risk of flooding.
In the first half of 2024, 7,116 new dwellings were granted full or conditional approval on planning permissions along the planning pipeline on previously undeveloped floodplain land in the 12 local authorities studied. 1,006 of those permissions were entirely new permissions of either full, outline or reserved matters applications. Additionally, 2,389 new dwellings were granted planning permission on previously developed land or as a result of change-of-use applications, and 276 of those were new applications this year.
|
Local planning authority |
Previously granted permissions |
Newly granted planning permissions |
Dwellings granted permission on previously developed land |
|
Boston |
777 |
229 |
30 |
|
Doncaster |
431 |
227 |
200 |
|
East Lindsey |
367 |
51 |
23 |
|
Exeter |
700 |
0 |
10 |
|
Fenland |
545 |
35 |
53 |
|
King’s Lynn and West Norfolk |
1169 |
54 |
243 |
|
Kingston upon Hull |
441 |
90 |
157 |
|
North Lincolnshire |
44 |
15 |
15 |
|
Runnymede |
170 |
0 |
211 |
|
South Holland |
1695 |
178 |
25 |
|
Spelthorne |
647 |
0 |
731 |
|
Windsor and Maidenhead |
130 |
130 |
691 |
|
Total |
7116 |
1006 |
2389 |
[1] Including full, outline and reserved matters applications
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Business & Finance
AI Revolutionizes Cryptocurrency Trading with Real-Time Analysis
AI algorithms are transforming cryptocurrency trading by offering real-time analysis and unprecedented efficiency. This article explores the technological advancements and their impact on the crypto market.
Artificial intelligence is rapidly reshaping the cryptocurrency trading landscape, a fact made clear by recent reports from Bloomberg. The integration of AI algorithms into trading strategies is providing unprecedented real-time analysis and efficiency, a development that is attracting significant attention from investors eager to capitalize on the volatile yet lucrative crypto markets.
In May 2026, Bloomberg highlighted how AI technologies are enabling traders to process vast amounts of market data at speeds unattainable by human analysts. This capability allows for the detection of patterns and trends that might otherwise go unnoticed, offering a competitive edge to those who harness these tools. The real-time nature of these analyses means traders can make decisions based on the most current market conditions, enhancing the potential for profitable trades.
The application of AI in cryptocurrency trading is not merely a theoretical concept but a practical reality transforming investment strategies. For instance, hedge funds and institutional investors are increasingly relying on machine learning models to predict price movements and optimize trading algorithms. These models can analyze a myriad of factors, from market sentiment to historical price data, adjusting trading strategies dynamically in response to new information.
AI’s role in enhancing trading efficiency is particularly crucial in the cryptocurrency markets, where volatility is a constant challenge. The ability to swiftly process and react to market changes can mean the difference between a lucrative trade and a significant loss. This agility is driving interest from tech-savvy investors who are keen to leverage innovation for financial gain.
However, the rise of AI in cryptocurrency trading is not without its challenges. Regulators are grappling with the implications of these technologies, as traditional oversight mechanisms struggle to keep pace with rapid technological advancements. There is an ongoing debate about the need for new regulatory frameworks to ensure fair and transparent trading practices.
Despite these challenges, the potential benefits of AI in cryptocurrency trading are substantial. As the technology continues to evolve, it is likely to drive further innovation in the financial sector, offering new opportunities for growth and investment. Investors and firms that can effectively integrate AI into their trading strategies are poised to thrive in this new digital era.
The future of cryptocurrency trading appears increasingly intertwined with AI technology. As more traders adopt these advanced tools, the market dynamics will likely shift, favoring those who can adapt quickly to technological changes. The ongoing integration of AI into cryptocurrency trading not only heralds a new era of financial innovation but also underscores the transformative power of technology in shaping the future of finance.
Business & Finance
The Rise of Green Finance in Europe: Challenges and Limitations
Explore the burgeoning field of green finance in Europe, focusing on the critical challenges and limitations that could shape its future. This article provides a thorough analysis of the barriers to sustainable investment growth and the potential implications for investors.
As the sun rises over Europe’s financial districts, a new wave of investment strategies is beginning to take shape. Green finance, a term that encapsulates financial investments flowing into sustainable and environmentally friendly projects, is gaining traction across the continent. However, beneath the surface of this promising trend lie significant challenges that could impede its progress.
The current landscape of green finance in Europe is characterized by an increasing number of funds and initiatives aimed at supporting sustainable development. The European Union has been at the forefront, implementing a comprehensive framework that encourages green investments. This includes the EU Green Deal and the Sustainable Finance Disclosure Regulation (SFDR), which aim to direct capital flows towards sustainable economic activities. Despite these efforts, the journey towards a universally green financial system is fraught with obstacles.
One of the primary challenges facing green finance is the lack of standardized definitions and metrics. What exactly constitutes a ‘green’ investment can vary significantly across regions and sectors, leading to confusion and inconsistency. This lack of clarity can result in greenwashing, where investments are marketed as sustainable without meeting rigorous environmental criteria. The absence of a unified taxonomy complicates efforts to assess and compare the sustainability of different financial products.
Moreover, the transition to green finance is hindered by the existing financial infrastructure. Traditional financial systems are deeply entrenched, often prioritizing short-term gains over long-term sustainability. This systemic inertia makes it difficult for green initiatives to gain a foothold. Additionally, many investors are still skeptical about the profitability of sustainable investments, perceiving them as risky or less lucrative compared to conventional options.
Another significant limitation is the uneven distribution of green finance across Europe. While countries like Germany and the Nordic nations have made substantial progress in integrating sustainable practices, others lag behind due to economic and regulatory disparities. This imbalance poses a challenge to achieving a cohesive and effective green finance strategy across the continent.
The role of technology and innovation in overcoming these challenges cannot be overstated. Advancements in fintech, such as blockchain and artificial intelligence, have the potential to enhance transparency and efficiency in green finance. These technologies can help track and verify the environmental impact of investments, thus building trust and credibility in the market.
Despite these hurdles, the future of green finance in Europe holds promising opportunities. As awareness of climate change grows, so does the demand for sustainable financial products. Investors are increasingly recognizing the long-term benefits of aligning their portfolios with environmental goals. Furthermore, regulatory pressures and societal expectations are likely to drive more companies towards sustainable practices, thereby expanding the scope of green finance.
In conclusion, while the rise of green finance in Europe is a step in the right direction, it is not without its challenges. Addressing the issues of standardization, infrastructure, and regional disparities will be crucial in unlocking the full potential of sustainable investments. As Europe navigates these complexities, the outcome will not only shape the future of its financial markets but also its commitment to a sustainable global economy.
Business & Finance
Fed Ends Crypto-Specific Oversight: What It Means for the Industry
By PromoMag Business Desk | August 2025
The U.S. Federal Reserve has officially ended its dedicated oversight program for crypto and fintech—signaling a shift in how regulators will handle digital asset activities going forward. The “novel activities” supervisory program, introduced in 2023, is being dissolved, with crypto oversight now folded back into the Fed’s traditional bank examination framework. The decision has stirred debate across the financial world, as institutions assess whether this signals regulatory maturity—or strategic retreat.
The implications are significant. From compliance teams at major banks to fintech startups vying for legitimacy, everyone involved in digital assets must now recalibrate to meet evolving expectations without the specialized lens once offered by the Fed’s focused crypto arm.
The move suggests the Fed believes crypto is now mainstream enough to be treated as part of general financial supervision—yet critics worry this could dilute the nuanced oversight digital assets require.
Background: The “Novel Activities” Framework
The Fed launched its novel activities supervision program in August 2023 in response to growing integration of crypto, stablecoins, and blockchain-based banking functions across U.S. financial institutions. The initiative aimed to provide centralized expertise and scrutiny for risk-laden innovations, including tokenized assets and distributed ledger operations.
It operated parallel to traditional supervisory mechanisms, offering more specialized attention to high-risk fintech and crypto ventures while maintaining consistency across regional Federal Reserve Banks.
This structure was designed to address growing concern about the systemic risk posed by digital assets—especially in the wake of crypto collapses like FTX and TerraUSD.
Why the Fed Is Pulling the Plug
Fed officials have not framed the closure as a downgrade of crypto’s importance, but rather as a consolidation of resources. According to internal briefings, the rationale centers around streamlining compliance review, increasing supervisory efficiency, and reducing regulatory overlap.
A spokesperson from the Federal Reserve Board stated:
“We are embedding digital asset risk monitoring within our standard supervisory models, ensuring consistent treatment across all novel activities.”
In essence, the Fed believes that its traditional supervisory programs are now sophisticated enough to handle digital asset risks without the need for a separate channel.
Industry Response: Mixed Signals
Reactions from the financial sector are divided.
Major banks—including those offering crypto custody services or tokenized asset platforms—have expressed relief at the perceived reduction in regulatory burden. According to a senior compliance officer at a top-five U.S. bank:
“It’s a positive signal. The Fed sees crypto activities as part of the financial mainstream.”
However, fintech startups and some policy analysts worry the decision could lead to a loss of institutional expertise and focus, potentially making it harder to navigate complex regulatory expectations.
Crypto advocacy groups, such as the Blockchain Association, warned that “folding crypto oversight into legacy systems” could slow innovation and diminish clarity for newcomers to the space.
Regulatory Consequences for the Crypto Ecosystem
This shift creates a new regulatory reality for institutions engaged in digital asset activities.
Firms can expect a more generalized approach to supervision, one less tailored to the unique volatility and structural intricacies of blockchain technology. While this might reduce compliance complexity, it also removes the layer of crypto-specific feedback once provided under the novel activities program.
The Securities and Exchange Commission (SEC) and the Office of the Comptroller of the Currency (OCC) have shown no indication of following suit, meaning regulatory fragmentation in the U.S. will likely persist.
Moreover, it raises questions about the future of coordinated federal crypto policy—especially as debates continue over stablecoin regulation and the role of central bank digital currencies (CBDCs).
Global Context: Lagging or Leading?
The Fed’s move contrasts with approaches taken in Europe, Asia, and even the UK.
The EU’s Markets in Crypto-Assets (MiCA) regulation has introduced a fully bespoke framework for digital asset supervision, offering clarity and structure to market participants. Hong Kong and Singapore have likewise invested heavily in dedicated crypto regulation teams and innovation hubs.
In the UK, although regulatory clarity has been slow, the recent announcement that retail investors will soon access regulated crypto ETNs on the London Stock Exchange underscores a willingness to evolve within clear frameworks.
As a result, some experts argue the U.S. risks falling behind its global peers in crypto governance and innovation readiness.
What Happens Next
For institutions, the end of the Fed’s crypto-specific program means adapting to a more homogenized—but perhaps less predictable—regulatory regime.
Financial firms should review their risk disclosures, audit procedures, and supervisory expectations to align with the broader examination frameworks now in place. The Fed is expected to release updated supervisory guidance before the end of 2025 to assist with the transition.
Market watchers will also look to Congress for any moves toward legislative clarity, particularly around stablecoins, custody rules, and crypto exchange oversight.
Final Thoughts
The Fed’s decision to retire its novel activities supervision marks a turning point. On the one hand, it acknowledges crypto as no longer “novel”—but rather as an established component of financial services. On the other, it risks flattening the regulatory nuance needed to address crypto’s unique challenges.
Whether this shift accelerates mainstream adoption or muddies the regulatory waters will depend on how swiftly and clearly the Fed communicates its new expectations.
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