Government funding for areas hit by July floods

Published	16 August 2007

Communities Secretary Hazel Blears has announced that 36 local authorities affected by the July floods will receive a share of £6.2 million of Government funding to help the people in their communities in the greatest need.

The money enhances the flood recovery package announced by the Prime Minister to help vulnerable individuals and families. Over the last few weeks Government has worked closely with local authorities to clearly assess the extent of damage so funding could be released as quickly as possible. The money will be paid into the accounts of councils tomorrow in order for them to make a quick and real difference to the lives of those people in the greatest need.

More Government help with the costs of immediate action to safeguard life and property will follow through the special Bellwin Scheme. In addition specialist central government officials from areas including transport, schools and housing are working with authorities to get a clear assessment of the costs and consequences of the floods so further targeted help can follow.

A total of £6.2 million will be paid to 36 local authorities. Just under £2.5 million of this will go to councils in the Gloucestershire area, which was particularly badly affected in the July floods. The money has been allocated to reflect the relative number of households affected. Up to £3.2 million remains available for further distribution as information on the impact of the July floods improves by the day.

Local authorities will decide how to spend the money to help flood-hit members of their communities get back on their feet. To date Government funding allocated to communities affected by the June floods has helped over 5,000 families. Some examples of the expenditure include:

* Over 5,000 cheques, ranging from £150 to £750, have been distributed to those most in need.* Over 700 white goods including fridges, cookers and washing machines as well as nearly 1,900 items of furniture have been distributed so people can continue to live in their homes.* Twenty-five caravans for temporary accommodation helping to keep communities together.

Communities Secretary Hazel Blears said;

"I have seen for myself the devastation caused by the recent floods. Having spoken with people and businesses affected I know what a difficult time this is for them. That is why Government is committed to doing everything it can to support the local authorities help communities get back on their feet as soon as possible.

"As part of this I am pleased to announce £6.2 million is being released to flood-hit communities to help those most in need and will be in local authority bank accounts tomorrow. I know this money will help - as similar support has made a difference in areas hit by earlier flooding. But I also know more is needed. Once we have received an updated assessment of the damage more targeted help will follow, including extra support through the Bellwin scheme as well as additional help with costs associated with transport, housing and schools.

"Over the coming days and weeks I, and other Ministers, will continue to visit affected communities. It is important we see for ourselves how the recovery is progressing and make sure communities are getting the support they need. I know this will not happen overnight but I want everyone to know Government is in this for the long haul."

Notes to Editors

A full list of the individual allocations is set out below.

Authorities to which grant is to be paid Amount of grant (£) West Berkshire Council £600,000 Stratford-upon-Avon District Council £600,000 Wychavon District Council £600,000 Tewkesbury Borough Council £600,000 West Oxfordshire District Council £600,000 Cheltenham Borough Council £600,000 Cotswold District Council £600,000 Gloucester City Council £600,000 Malvern Hills District Council £200,000 Vale of White Horse District Council £200,000 Wyre Forest District Council £160,000 Herefordshire County Council £100,000 East Lindsey District Council £100,000 Stroud District Council £50,000 Royal Borough of Kensington & Chelsea £50,000 Oxford City Council £50,000 Worcester City Council £50,000 London Borough of Hammersmith & Fulham £50,000 Scarborough Borough Council £50,000 Royal Borough of Windsor & Maidenhead £50,000 Solihull Metropolitan Borough Council £50,000 South Shropshire District Council £23,000 London Borough of Richmond-upon-Thames £20,000 Forest of Dean District Council £20,000 Reading Borough Council £20,000 Bromsgrove District Council £20,000 Rugby Borough Council £20,000 Birmingham City Council £20,000 London Borough of Wandsworth £20,000 North Warwickshire Borough Council £11,500 Redditch Borough Council £11,500 Cherwell District Council £11,500 Wokingham Borough Council £11,500 London Borough of Kingston-upon-Thames £11,500 South Northamptonshire Council £11,500 Richmondshire District Council £11,500 Total £6,203,500

The £6.2million total is an initial payment to support the recovery work of local authorities in flood-hit areas. Further payments will be made once we have an updated assessment of damage.

A significant amount of work across Government has taken place to support the local recovery operation. A summary of action to date includes:

* £8 million out of the £10 million Flood Recovery Grant was paid into the bank accounts of 34 local authorities on Friday the 13th of July - in less than a week of the Prime Minister's 7th of July announcement. The remaining £2 million was allocated the following week. A subsequent £10m was announced on the 24th of July of which £6.2m, as announced today, will be paid by the 17th of August.

* The Department for Work and Pensions is helping people on income related benefits or the lowest of incomes affected by the flooding with essential costs through Community Care Grants and repayable interest-free Crisis Loans, administered by Jobcentre Plus. A contingency reserve of £1 million can be drawn on by Jobcentre Plus as needed to meet the extra call on Community Care Grants

* The Department for Transport has £3 million available to support longer run infrastructure costs in flood affected areas. This will be called on as the detailed requirements of local authorities are better analysed

* The Prime Minister also announced that we have made the special Bellwin Scheme more generous in the exceptional circumstances of these floods. This will allow local authorities to reclaim 100% of their cost (up from 85%) and to claim costs incurred in the 6 months following the incident (up from 2 months). To date 26 authorities have notified their intention to claim under Bellwin

* For businesses the government's regional development agencies have each set up fund to support business recovery in the worst affected areas

* Advantage West Midlands has made available funding of up to £500,000 to secure the repair of the Severn Valley Railway and £250,000 for a marketing and publicity campaign, working with local authorities and partners, to encourage more visitors to speed-up the recovery of the tourism economy. Subsequently they have announced a further £1m* The East Midlands Development Agency has made available a £500,000 Flood Recovery Fund to help support small and medium-sized businesses (SMEs) affected by the floods. Grants for up to £2,500 for immediate recovery needs following the floods which struck the region in mid June* Yorkshire Forward initially announced a £1,000,000 Small Business Recovery Scheme to support small and medium size businesses affected by floods, and has since increased this to a total of £5m. Again, grants of up to £2,500 are available for losses as a result of the floods. First payment was made to a company in Rotherham on 9 July, just seven working days after the helpline opened. Large companies in Yorkshire and the Humber (over 250 employees) are being contacted on an individual basis to discuss their specific needs* South West Regional Development agency announced £2m. Eligible businesses are able to claim up to a maximum of £2,500, which could include clean up costs and materials and alternative temporary accommodation. Longer term items such as business continuity planning and marketing and business advice will also be covered. All types of businesses are eligible including farms, sole-traders and tourism companies.* The South East England Development Agency is also providing grants of up to £2,500 for businesses.

* The Department for Children, Schools and Families announced an initial £10 million of support for schools and children's services in flood affected areas. Further assessment work is currently with the affected local authorities. A further £4m was announced to support schools damaged in the July floods

* On 14 August, the Government announced a £1m cash injection to promote rural destinations and visitor attractions which are vital to the economic health of local communities. It will fund a targeted marketing campaign for the regions of England and businesses such as B&Bs, caravan parks and attractions.

* On 1 August the Government confirmed that it would lodge an application to the European Commission for support from the European Union Solidarity Fund to help recovery from the floods.

* Over the last ten years Government has doubled expenditure for flood defences from £300 million to £600 million, and for the longer term it will increase further to reach £800 million by 2011.

Public Enquiries: 0303 444 0000;News Releases: http://www.communities.gov.uk