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Healey announces a further £1million council flood funding

Published 13 March 2008

Floods Recovery Minister John Healey today announced almost £1million funding for four local authorities to help them get back on their feet following last summer's floods.

This is part of £16million that has now been paid out under the Bellwin scheme, which covers costs incurred by local authorities during immediate action to safeguard residents and property to prevent suffering as a result of a disaster or major emergency. This means that in total up to £86 million Government support has now been made available to help communities get back on their feet following last summer's floods.

Today's payments are:

  • West Berkshire Council will receive £537,697
  • Tewkesbury Borough Council will receive £351,073
  • Gloucester City Council will receive £28,366
  • Oxford City Council will receive £80,294

This is the eleventh set of Bellwin payments relating to last summer's floods and 38 local authorities have now received funding. It is the third payment for Gloucester City Council (they have already received £160,995).

John Healey said:

"I am delighted to announce funding today for these four authorities to help support their efforts to get back on their feet following the floods. For Gloucester City Council it is their third payment under the Bellwin Scheme where we have made it easier for councils to claim back additional costs from the 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.

"Today's payments demonstrate our continued commitment to support communities across the country as they work to return to normal following last summer's floods. While a huge amount has been achieved I am well aware that some areas still face challenges. So we will continue to support these communities over the coming weeks and months."

Notes to editors

These Bellwin payments mean the total flood recovery funding from the Government received by these authorities so far are as follows:

  • West Berkshire Council: £2,235,601
  • Tewkesbury Borough Council: £1,024,573
  • Gloucester City Council: £838,866
  • Oxford City Council: £140,294

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.

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