The Cost of The Flood

The scale of the financial challenges faced by the severe flooding was only just becoming clear last week. The Association of British Insurers said the floods would cost the industry an estimated £1.5bn - 50% more than it originally thought; though still not enough for EU funding support. Insurers are currently dealing with claims from around 27,500 homes with an average value of £30,000 and so far from just over 7,000 businesses averaging £100,000; though many more are claims are expected.

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In Doncaster, one of the hardest hit areas, the biggest evacuation occurred because of the foods since the second world war.

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The Mayor of Doncaster, Martin Winter, said over 3,000 people were evacuated from their homes during the flooding and about 700 were still unable to return. "It may be six to 18 months for some people before we can actually get them back in their homes, if at all," he said. "We've got to do a full condition assessment to look at whether some of these houses are safe to get people back into.

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In Hull civic leaders, who this week said theirs was a "forgotten city", said they were facing a bill that could top £200m. Around 17,000 properties in Hull have been affected by the floods and 10,500 homes evacuated.

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Speaking in Hull, the Archbishop of York, John Sentamu, said a "swift" response from the government was vital, emphasising that many of the victims were "really vulnerable people". Though perhaps His Grace was not thinking specifically of small businesses when he mentioned ''venerable people'' it is a group that is easerly forgotten in the aftermath of great disasters.

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The Prime Minister's spokesman said the government was looking at how it could provide additional assistance through the Bellwin scheme, under which local authorities are given funds to help clear up after disasters. This money could be used for setting up temporary offices, hiring additional vehicles, initial highway repairs, clearing the drainage systems, the provision of emergency food aid and so on.

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The spokesman said the government was also considering further help for individuals most at risk, through crisis loans, community grants and local authority support.

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The Federation of Small Businesses (FSB) has announced £500,000 of its own funds is available for short-term interest- free loans of up to £5,000 to any FSB member who is suffering severe trading hardship because of the recent floods.

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The FSB made the same arrangements for businesses who suffered in the wake of the Foot and Mouth debacle six years ago. The FSB, as the UK's largest business organisation, is determined to help their members get back on their feet as soon as possible following this disruption."

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The FSB will no doubt be in discussion with the insurance industry to ensure claims from small business people affected by the flooding were dealt with as quickly as possible, least the small business community is forgotten!

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