Economists say the flooding crisis could hamper Britain's growth by up to 0.2 per cent

It is “too early” to estimate the cost of the flooding in the North of England, a spokesman for the insurance industry has said, but economists warn that the current crisis could hamper Britain’s economic growth by up to 0.2pc. A spokesman for the Association of British Insurers (ABI) told the Daily Telegraph that there was no way of putting a figure on the cost of the current flooding crisis, which is affecting vast swathes of Northern England, from Hull to Lancashire. “Thousands of properties have been affected,” he said. “Parts of York have been evacuated. We still don’t know the extent of the damage and we won’t until the flood waters recede and the insurers can get in.” Britain’s insurance industry is more than capable of dealing with the crisis, he claimed. “It is just a month after Cumbria but floods coming in quick succession are not without precedent,” he said. “In 2013, we saw this when floods in Somerset were followed by the flooding of the Thames. “Insurers will be able to deal with this.” View from our place. #Leeds #leedsfloods @CallsLanding pic.twitter.com/F8oNSpmiWC — Sheila Miho Sato (@shirsato) December 27, 2015 One economist has noted that while Britain's economic growth will be affected by the crisis, the impact will be "limited". Gains made through rebuilding damaged parts of Britain further down the line could help balance out the effects of the flooding, he claimed. The costs of the damage caused by Storm Desmond in Cumbria at the beginning of December have been estimated to top £520m by the ABI, but the total cost of the most recent flooding is likely to be much higher. “There has been flooding over a much wider area and more businesses have been affected,” the ABI spokesman said. The trade body, which represents 250 insurers, accounting for over 90pc of the UK insurance market, is calling on all those affected to contacted their providers’ emergency hotlines. Emergency payments are available, and insurers can help source interim accommodation for those forced out of their homes by the flood waters. In the 10 days following Storm Desmond, £2.6m was paid out in emergency insurance payments. “The floods could well shave 0.1pc - 0.2pc off GDP growth overall in the quarter that it occurs, in terms of businesses not being able to open, loss of agricultural output, people not being able to get to the shops, and travel,” said Howard Archer, chief European and UK economist at IHS Economics. “However, damage to personal property does not affect GDP growth, although it is obviously a disaster for the poor people involved. And GDP measures do not capture the stress that the people/businesses affected incur.” Britain’s economy will benefit from a growth spurt created by repair works in early 2016, he claimed. “There will be some boost to growth through the construction work that will be generated by major repair work to buildings and infrastructure, replacement buildings, purchases of furnishings and household goods lost or damaged during the flooding.”