RSA comments on discretionary council tax discounts for those affected by the floods of summer 2007

"Floods Recovery Minister John Healey today announced that 25 councils helping over 1,500 flood-hit families pay their council tax bills will share over GBP1.2million Government funding.

Homes that were unoccupied and in need of major repair were exempt from council tax after the floods - but these exemptions are only allowed for a year.

That is why in June Mr Healey wrote to councils reminding them they also have the power to give discretionary discounts of up to 100% and urged them to do so.

Given the other burdens on these councils, he promised that Government would cover the cost for this so other local council taxpayers are not unfairly affected.

This new money brings total Government support for areas affected by last summer's floods to over GBP134million.

"(Source: Press Association 07.11.08) Alan Gairns, Head of Property for insurance expert RSA comments: "It is pleasing to see that Government has made funding available to help families with their council tax bills, and that Government's support to areas affected by last summer's floods is now some ?134m.

However, this must be set in context against the ?3bn cost to the insurance industry.

This demonstrates the important part insurance plays in providing protection for homeowners and businesses.

In the absence of insurers providing this protection it would most likely fall to Government to pick up the cost.

"The future availability of flood cover in property policies, both household and business, is dependent on Government reducing the flood risk for the 500,000 properties that are currently at flood risk.

We would urge the Government to ensure that their 25 years long term investment plan on flood protection, due to be published in the Spring 2009, provides the maximum funding that will help the Environment Agency protect as many of those properties as possible over the 25 years period.".

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