woodsmith
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If it is letting so much water through that it is ponding on the floor then you have a serious problem, and I would think that the blocks could soon become damaged by frost so I think you need to find a way to keep the blocks dry.
As a chippy my first thought is to timber clad the outside face by fixing roofing lath vertically, put a breathable membrane over that then clad with a treated cladding. With such a small space to work it will be a challenge but not impossible.
With so much water getting through it sounds like there may be no guttering? If so you need to fit some to ensure the water off the roof is taken into the drains or dig a good soak away well away from the building.
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