Osborne’s £50m to help homes blighted by floods

CHANCELLOR George Osborne has moved to ease the trauma of the Storm Desmond floods in the North West with announcement of a £50m fund for businesses and families affected in Cumbria and Lancashire.

Under his plan announced yesterday, each family will be eligible to claim up to £5,000 to protect their homes from future damage with the funding administered by local authorities to avoid delays.

However, just hours later more misery was heaped on the Cumbria as heavy rain wreaked more havoc and misery in the village of Glenridding with police and fire crews drafted in after the nearby river burst its banks.

Meanwhile the Institute of Directors in Cumbria has called for a business rates holiday to help flooded businesses, while also welcoming Mr Osborne’s announcement over the £50m fund.

Chris Ward of IoD Cumbria said: “With each day the destruction wrought by Storm Desmond becomes clearer, and more and more households and businesses are coming to terms with how they can deal with the damage.
 
“For some small and medium-sized businesses, the flood damage is a serious threat to their very existence.
 
“Many will be closed for months, and will face hefty bills to replace equipment, buy new stock and repair their premises. At this time, it is imperative that insurance companies move as quickly as possible to help small firms in particular.
 
“Central government, too, has rightly recognised that it has a role to play. The £50m fund and grants announced by the Chancellor will help, but getting back to business as usual in the affected areas merits more intervention.

“Politicians should consider whether moves like a business rates holiday for SMEs would be appropriate.

“If local authorities were to forego one month of business rates, small businesses would receive an immediate cash boost to help get themselves back to health and let them continue to play the vital role they do as a vibrant part of the North West economy.”