River levels were being monitored closely today as the threat of floods in East Sussex at last began to recede.

Scant overnight rain allowed swollen rivers to fall following a sustained deluge throughout yesterday.

Homes and businesses in flood-prone areas, such as Uckfield, Lewes and Robertsbridge, were shoring up as rivers rose.

However, fears that low-lying areas could see a repeat of the devastating autumn 2000 floods mercifully proved unfounded.

Only a few isolated flooding reports were received by the Environment Agency and East Sussex fire brigade overnight.

Many fields remained heavily water-logged this morning but surface water had cleared from most roads.

In East Sussex, a flood warning remained on the Ouse from Isfield to Barcombe, while flood watches were on 13 rivers this morning.

However, with cold but dry weather forecast during the weekend, the Environment Agency predicted East Sussex would escape further flood damage.

An agency spokeswoman said today: "The situation is gradually improving.

"River levels rose with the amount of rainfall yesterday. Fortunately, however, the rain has now ceased, allowing rivers to recover.

"There were problems with surface water and springs shooting up but with the rain now falling off they are recovering too."

Meanwhile, junior environment minister Elliot Morley today sought to allay fears that insurance companies would not pay out for flood-hit homes.

The Association of British Insurers had given a 'very practical and pragmatic' agreement that most people, even in flood-risk areas, would continue to get their insurance, he said.

"A large number of insurance companies are renewing - even people who have had claims in flood risk areas - and many of the companies have made it clear that they will take this business on in all but the most exceptional cases,' he told the BBC Radio 4 Today programme.

Mr Morley praised the work of Environment Agency and council officials, stressing: "This has been a very effective flood management incident."

But he conceded that a 'significant increase' was needed in flood defence spending, adding: "That is why the Government has substantially increased its budget.

"We will be spending something like £564 million at the end of our three-year spending review period which are of course record sums of money."