PM announces support for flood victims

10 Jul 07

Prime Minister Gordon Brown has given £14m of ‘immediate support’ to help communities worst affected by last month’s flooding.

The move comes just days after Environment Secretary Hilary Benn announced a £200m increase in spending on flood risk management and defences by 2011.

The Government has said it will continue to monitor the impact of the flooding through work with local councils and agencies as the insurance industry comes to terms with an expected £1.5bn in claims.

Brown paid tribute to what he described as the heroic efforts of those who responded to the floods and assured the public that the Government will be doing “everything possible to help".

He said, “I am taking immediate action to alleviate the suffering of those affected by the floods by announcing a £14m package of support to get people back on their feet as quickly as possible. I'm also pleased to announce that we are increasing the proportion of costs local authorities can claim to 100%.”

The money is in addition to the Bellwin scheme which provides emergency financial assistance from Government to local authorities to meet the costs of immediate support. Usually only 85% of costs can be claimed back by authorities, but Brown has said they are now entitled to 100% because of the extent of the damage.

Last week, The Federation of Small Businesses announced the establishment of a half-million pound fund to assist businesses that have been affected by the floods.

“I am taking immediate action to alleviate the suffering of those affected by the floods by announcing a £14million package of support to get people back on their feet as quickly as possible.”

Gordon Brown, Prime Minister

The FSB has set aside a total of £500,000 in short-term interest free loans for any FSB member suffering severe trading hardship resulting from the crisis.

John Wright, the organisation’s National Chairman said,

“I have been as horrified as the rest of the country at the extent of the devastation from the recent flooding across the country.”

Wright called on the Environment Agency to focus on assisting businesses to get back on their feet as much as they do when helping people in their homes.

Individual loans from the FSB will not exceed £5000 and priority will be given to cases where no other financial support is available.

Postscript :

Any FSB member wishing to apply for assistance should contact their regional office for further information.