RIVERS in the region remained on high flood alert last night, with more heavy rain forecast.

Businesses were the worst hit by the latest bout of flooding, but the majority of homes escaped unscathed.

There was anger in one North Yorkshire town, where a business was flooded despite the completion last year of a £7.5m scheme to protect homes and businesses from the River Derwent.

Workers arrived at steel fabrication company Taylor and Brown Limited, in Castlegate, Malton, yesterday morning to find the building under 6in of water.

Office manager Malcolm Walker said: "We could not work yesterday, and we cannot work today, so we have lost two days' production and we are only a small company.

"The flood defences were finished last summer and they said it was watertight. Well, it is obviously not."

A spokesman for the Environment Agency said the problem was caused by groundwater rather than river water.

He said: "It is nothing to do with the river at all. Groundwater can be a problem anywhere when the ground becomes saturated."

In York, the rain-swollen River Ouse flooded businesses by the river. It was expected to peak at 7.30pm last night, but Environment Agency officials said they were not anticipating further problems.

Many homes escaped the flood, but The Kings Arms, in King's Staith, was deluged.

Landlord Mike Hartley said he was prepared.

He said: "All the furniture is well out of the way. It is just a shell now until it goes down and dries out."

Last night there were still five flood warnings in place on the River Ouse, including at the riverside footpaths, in York. The River Swale at Kirby Wiske was also subject to a flood warning.

North Yorkshire Fire Brigade said they were not anticipating problems overnight, although they warned that heavy rain had been forecast for the next few days.