Coinciding with the announcement that the UK has experienced the wettest winter since records began, Prime Minister David Cameron has announced that at least £40m will be allocated to small businesses, farmers and residents who have been victims of the recent devastating flooding.
Approximately £19m will be made available to small and medium-sized enterprises (SMEs), either through rate relief for up to three months, or from a hardship fund set up to help to cover water damage that might not be covered by insurance.
Meanwhile, businesses that have been flooded since December 2013 will qualify for 100 per cent business rate relief for three months, regardless of how long they were flooded.
In addition, affected businesses will get an extra three months to pay the business taxes they owe to HM Revenue & Customs as they struggle to get back on their feet.
However, businesses with a rateable value of more than £10m will not be eligible for rates relief, which will be implemented for smaller firms immediately.
Business Support Scheme funding is being provided on top of business rate relief, and allows local councils to help both flooded businesses and those who have been indirectly affected through loss of trade, for example by being cut off.
Furthermore, companies that have been affected by the floods will also be able to get grants of about £2,500 on average to compensate them for trade losses.
Meanwhile, from April 1, repair and renewal grants will provide financial support for households and businesses to pay for work that improves a property’s ability to withstand future flooding.
Grants of up to £5,000 will be paid to flooded homeowners and businesses, once a survey to identify appropriate resilience measures has been completed.