Financial assistance for flood-hit areas

To date a significant package of up to £86 million has been made available to support areas affected by the flooding of June and July 2007. The main elements of the package are:

Up to £20 million from Communities and Local Government for Flood Recovery Grant to support the recovery work of local authorities, and particularly their work with those in greatest and most immediate need.
Around £18.4 million of this funding has now been released to the hardest hit local authorities.
Around £17 million from Communities and Local Government through the Bellwin Scheme (see below) with more to follow. Flood affected Local Authorities have been able to apply to the Department for help through the Bellwin scheme which provides financial assistance to local authorities dealing with emergencies.
£14 million from the Department for Children, School and Families for schools and children's services affected by the floods. Funding allocations have been announced for those affected by the June and July floods (external links).
Over £23 million from the Department for Transport to local authorities for repairs to damaged transport infrastructure.
Over £11 million from Regional Development Agencies for businesses affected in their regions. Further information can be found on the Business Enterprise and Regulatory Reform website (external link).
£1 million which can be drawn on as contingency by the Department of Work and Pensions (DWP) for use by JobCentre Plus to support additional demand for Social Fund Community Care Grants.
£1 million from the Department for Culture Media and Sport (DCMS) to support rural tourism in England through promoting rural destinations and visitor attractions.

Bellwin Scheme

Local authorities can apply to Communities and Local Government for help through the Bellwin scheme (external link) which provides financial assistance to local authorities dealing with emergencies. Exceptionally, the terms of the present schemes, have been made more generous because of the circumstances of the recent floods. (See FAQs for further information).

EU Solidarity Fund

On 20 August the Government submitted an application to the European Union Solidarity Fund (EUSF). The EUSF aims to help Member States meet the uninsurable costs of dealing with natural disasters, for example, supporting the costs of emergency services, cleaning up and putting infrastructure back in order. In response the European Commission has proposed to grant EUSF aid of just under €163 million (£110 million) to be paid to the UK in spring 2008. The full text of the EC announcement can be found on the European Commission website (external link).

British Red Cross

On 24 July the British Red Cross launched their National Floods Appeal to help communities in hardship as a result of the floods. Further information can be found on the Red Cross website (external link).

Tax and tax credits

The Government is looking to take a sympathetic and positive approach to all businesses affected by severe flooding and has announced a package of measures that include waiving interest and surcharges on tax paid late due to the floods.

On 25 July 2007 the Chancellor of the Exchequer announced a package of measures for individuals and businesses affected by severe flooding.

The Government has announced in the Budget that it will bring forward legislation that will allow the Commissioners of HM Revenue and Customs (HMRC) to waive interest and surcharges on tax paid late due to the floods. For details please see HMRC's Budget Note - BN094 (external link).

HMRC has set up a Helpline for anyone affected by the recent floods. The Helpline will enable anyone affected by the flooding to get fast, practical help and advice on a wide range of tax problems they may be facing. The Helpline number is 0845 3000 157 and it is open seven days a week from 8.00am to 8.00pm. Tax credit recipients are asked to continue to use the helpline number 0845 300 3900.