Healey announces further flood funding for three local councils

Published	9 April 2008

Floods Recovery Minister John Healey today announced a further £365,000 in Bellwin funding to three of the councils affected by last summer's floods. Gloucestershire County Council, East Lindsey District Council and Cheltenham Borough Council will receive the money to support their ongoing work to get flood-affected communities back on their feet.

These payments bring the total amount paid to date under the Bellwin scheme to £17.9m. The funding will cover the costs incurred by local authorities to safeguard residents, protect property and prevent suffering in the immediate aftermath of last summer's flooding.

Gloucestershire County Council will receive their final payment of £253,260, bringing their total Bellwin support for the council up to £2,807,644. Total support for the council amounts to over £13m, including £10m for road repairs and £1m for school repairs.

East Lindsey District council will receive a payment of £63,801, bringing their total Bellwin funding to £119,711.

Cheltenham Borough Council will receive £48,361 in their first and final Bellwin payment, covering such emergency provisions as sandbags and extra staff.

John Healey said:

"I am delighted to announce another £365,000 funding for Gloucestershire County Council, East Lindsey District Council and Cheltenham Borough Council to support the ongoing recovery of their areas following the summer's floods. We have supported councils at every step of this process, extending the periods in which they can claim costs and increasing the amount that they can receive to 100 per cent.

"Whilst much has been achieved there are still challenges ahead and Government will continue to support these areas over the coming weeks and months."

Notes to editors

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.