Local government ministerJohn Healey has defended his £14m package of funding for flood-hit councils despite claims the sum is inadequate to cover the capital costs of rebuilding. The minister, who was also given responsibility for flood recovery and this week saw the chief executives of councils in the flood areas, told The MJ that the prime minister had already announced two new initiatives to alleviate damage costs. But the LGA has urged central government to dig deeper for flood- hit councils in areas including Hull, Doncaster and Sheffield. Some 31,200 homes and 7,000 businesses have been affected. Councils will receive £10m to support their ongoing recovery work, £3m will go to repairing roads and bridges and £1m will replace essential household items for the most vulnerable individuals. Whilst welcoming the speedy response of the Government, Sir Simon Milton, chair of the LGA, warned it was inevitable more money would be needed at a later date. ‘It is too early to have a clear estimate of the final costs. We will need to go back to the Government in due course to ensure local people get the help they need. ‘We are also mindful of the impact on local businesses in these areas and must ensure they are not forgotten.' This week the Chartered Institute of Loss Adjusters estimated claims from businesses would reach £680m, whilst domestic claims could reach £825m. And despite changes to the Bellwin funding scheme, available to councils hit by emergencies, councils have urged the government go further. An LGA spokesman pointed out that Bellwin did not cover damage to capital such as roads and buildings, a fact Hull City Council chief executive Kim Ryley also highlighted. ‘The £14m government funding is a helpful initiative to help tackle immediate hardship but the real debate will be about the longer term capital investment including damage to infrastructure and buildings,' he told The MJ. ‘We are having ongoing dialogue with the government to make Bellwin less bureaucratic and more flexible.' Local government minister John Healey told The MJ the PM had already relaxed the time councils were allowed to claim from the scheme from two months to six months. He had also increased the proportion of costs they can receive in support grants from 85% to 100%. Mr Healey admitted there was a challenge over paying for infrastructure but said full costings had to be received from the affected councils before final decision on funding was taken. Secretary of state Hazel Blears said the £14m funding package would be with councils ‘as soon as possible,' before pointing out the extra resources are ‘a first step, not the last'.
