The flooding which has affected large parts of southern England has caused devastation for hundreds of homeowners, with the military and Environment Agency still working in partnership to try to prevent further damage as the Thames water level continues to rise. However, in many towns it is not just homes that have been damaged – many small businesses are counting the cost as flood waters continue to wash into their commercial properties.
Although it is as yet too soon to begin the clean-up operation in the counties of Somerset, Berkshire and Surrey as the storms continue to rage, Prime Minister David Cameron has promised Governmental aid for flood hit business owners when a sense of normality returns. In part, this aid will come in the form of business rates relief, allowing businesses to channel funds into repairing and safeguarding their properties against future flooding.
Affected businesses will be eligible for 100 per cent business rates relief for a period of three months. Details of how affected businesses will be able to apply for the relief will be announced shortly. However, local authorities will not miss out on business rates as central Government will reimburse them for the losses.
Businesses will also be able to defer payment of other taxes over the same period. These include VAT, PAYE and corporation tax.
The Association of Convenience Stores welcomed the news from the Government, but claims that this will only help affected businesses in the short term. The industry body is currently focusing most of its energy upon campaigning for provisions in the Water Bill to help give local shops and other commercial property based businesses access to affordable insurance protection in cases such as this.
Chief executive James Lowman says; “This announcement is a welcome step from the Government to lessen the impact of flooding on our members in the short term.
“However, we must also focus on the long term and ensure that businesses have affordable flood insurance in the future.”
On top of the rates relief and tax deferral options offered by the government, the Prime Minister has also confirmed that a grant of £5,000 will be available to households and businesses to pay for repairs to improve their property’s flood protection.
Farmers will also be able to seek help to restore flooded land and waterlogged fields as quickly as possible. The help will come in the form of a £10m fund to be established by the government but it is not yet clear how this will operate.
The government has also announced that £750m will be available from the major banks to provide financial support to affected businesses and individuals. Again, there are no further details about this scheme at present.
With the government and EA facing high levels of criticism from home and business owners in affected areas, this news could be a step in the right direction for building the public’s trust once more.
However, the British Property Federation (BPF) has expressed concerns that many households and businesses will be excluded from the affordable flood insurance provided under the government’s proposals known as Flood Re.
Has your business been affected by the flooding? Do you think the government and EA have coped with the floods as best they could under the circumstances or could they have done more to prevent widespread damage earlier on?
