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- Further flood compensation for three authorities
Further flood compensation for three authorities
| Published | 19 December 2007 |
|---|
Humberside Fire, Lincoln City and Derbyshire Dales authorities
Floods Recovery Minister John Healey today announced that three authorities will receive payments totalling nearly a quarter of a million pounds from Government to help with their costs in clearing up after this summer's floods.
The authorities receiving the payments are:
- Humberside Fire and Rescue Service - £167,935
- Lincoln City Council - £67,660
- Derbyshire Dales District Council - £11,892.
Lincoln City Council's payment is an interim payment and they may receive further payment once the authorities have submitted final claims.
These payments are being made under the Bellwin scheme which covers costs incurred by local authorities on immediate action to safeguard life and property or prevent suffering as a result of a disaster or emergency.
This brings total payments under the Bellwin scheme so far to £1,461,487 in addition to the up to £63million of other Government support for all flood-hit areas - with more to follow.
In total 82 local authorities registered an interest in making a Bellwin claim so Government stands ready to make further payments in the next few weeks once claims have been received.
Floods Recovery Minister John Healey MP said:
"This summer saw the worst flooding in Britain for over a century. It hit large parts of the country causing widespread damage. As Floods Recovery Minister I have made many visits to flood-damaged areas and have been impressed by the commitment of councils and other agencies in helping their communities get back on their feet.
"But clearly this comes at a cost. That is why, given the extraordinary nature of these floods, we made it easier for councils to claim back additional costs from Government. We significantly extended the period for which they can claim and increased the proportion of costs they can receive to 100 per cent of spending above the threshold. To ensure money reached councils as quickly as possible we also said we are ready to make interim payments.
"I'm pleased to announce that the authorities' interim claims have been accepted and that the funds will be in their accounts shortly.
"While authorities can be proud of the progress they have made so far there is a long way to go. That is why more Government support will be available - including further Bellwin payments - as well as help from the European Commission. The flood waters are long gone but the clear up and repair problems for many households, businesses communities have not. Government is therefore also committed to the long haul and to continuing our support for local authorities and agencies leading the recovery efforts."
Notes for editors
1. The total funds related to flood recovery from Government received so far by the authorities in these parts of the country are listed below:
| Authorities | Total (£) |
| Boston Borough Council | 60,000 |
| Chesterfield Borough Council | 250,000 |
| Derbyshire County Council | 119,761 |
| Derbyshire Dales District Council | 71,892 |
| East Lindsey District Council | 380,000 |
| East Riding of Yorkshire Council | 3,100,549 |
| Humberside Combined Fire and Rescue Authority | 167,935 |
| Kingston Upon Hull City Council | 5,614,424 |
| Lincoln City Council | 67,660 |
| Lincolnshire County Council | 210,930 |
| North East Derbyshire District Council | 23,000 |
| North East Lincolnshire Council | 250,000 |
| North Lincolnshire Council | 180,000 |
| West Lindsey District Council | 130,000 |
Money to Businesses
East Midlands Development Agency
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. As at 10 December 2007, 161 successful applications have been made totalling £331,667.
Yorkshire Forward
Yorkshire Forward also has a £2m Flood Recovery fund offering grants of up to £2,500 to SMEs. They have also announced £3m for grants of up to £100,000 for larger firms. As at 10 December 2007, 1457 claims from SMEs and 63 claims from larger firms had been received, with £1,587,018 and £1,147,236 approved to be paid out.
2. The Bellwin scheme predominantly covers uninsurable costs as defined by the long established insurance policy offered to local authorities by the Zurich insurance company.
The costs typically covered include: costs of evacuating people from dangerous structures and works to make them safe following a natural disaster; temporary re-housing, initial repairs to and the clearing of debris from highways, pavements and footpaths.
The statutory requirement for the Bellwin scheme is that claims must relate to costs incurred by an authority on, or in connection with, immediate action to safeguard life and property or to prevent suffering or severe inconvenience as a result of a disaster or emergency.
The scheme does not usually cover capital expenditure; or the normal wages and salaries of the authority's regular employees; whether diverted from their normal work or otherwise, and the standing costs of the authority's plant and equipment.
The usual period to take action eligible for grant is two months but for the June and July floods that timescale has been trebled to six months. Local authorities will also be able to claim 100 per cent of eligible costs - instead of the normal 85 per cent - once they have spent over the threshold of 0.2 per cent of their revenue budget. The extension of time and the increase in the percentage means that authorities can claim more of their expenditure.
While local authorities normally have a month to notify the department of their intention to claim under Bellwin, on this occasion the department has been proactive in contacting them to ensure that they are in no doubt that they can claim, know how to apply and are aware of what they can claim for.
Although authorities affected by the June floods have until 14 January 2008 to apply, (1 February for July floods), we have made clear we are happy to make interim payments ahead of that against costs authorities have already incurred.
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