COMMUNITIES AND LOCAL
GOVERNMENT News Release (095) issued by The Government News Network
on 6 May 2008
Floods Recovery
Minister John Healey today said that all the extra money the UK is
receiving from the European Union (EU) to help with flood recovery
will be passed on to communities affected by last summer's floods.
Mr Healey announced that the Government was able to set up a
Restoration Fund of almost £31million for English local
authorities affected by last summer's flood to support their
continued efforts to rebuild their communities because of the
success of the UK in bidding for the European Union Solidarity
Fund. This money is the net receipt from Europe and is on top of
up to £88 million already made available to flood-hit areas to
help them get back on their feet - with more financial support to
follow. Funding will also be allocated to the Northern Irish and
Welsh devolved administrations in line with the damage they suffered.
Clearance was given for the funding on 7 April, when the European
Commission approved the amended EU Budget, and today we will
consult local authorities on how it will be distributed. The new
fund will be made available to Local Authorities, Police
Authorities, Fire and Rescue Authorities on the basis of costs
incurred in dealing with the problems since the summer. Local
authorities will be free to spend this money as they decide
according to local priorities. They are best placed to take these decisions.
Government will account for the spending of the European Union
Solidarity Fund directly to the EU which means local authorities
can continue to get on with the job of leading recovery efforts in
their communities without having to deal with additional
bureaucracy and associated costs or strict rules the EUSF involves.
The European Commission approved payment to the UK of around £110
million from the European Union Solidarity Fund, as a contribution
to the costs of recovery. However, due to the UK 'abatement
mechanism', agreed between Government and the EU and in place
since 1984, the net value to the UK of this allocation is an extra
£31m. John Healey confirmed that all this extra funding received
from the EU will be paid to flood-hit local areas.
John Healey said:
"Last summer's exceptional floods caused widespread
damage and misery for thousands of people. But the response was
equally exceptional - from local authorities and other local
agencies, the fire and rescue service, the military and neighbours
helping each other. Government played its part and we have made up
to £88million available so far to help flood-hit communities get
back on their feet.
"Building on the immediate recovery work, the Government is
today announcing a further £31 million Restoration Fund for local
authorities to help affected communities. This extra money comes
from the application I submitted to the European Union Solidarity
Fund. This fund was set up specifically to help towards the costs
in countries who have experienced extensive damage from natural
disasters such as floods. We have worked closely with the
Commission on this application and I went to Brussels myself to
discuss and promote it. So I welcome the EU's decision to
clear the funding to the UK and, in particular, I would like to
thank Commissioner H?bner for the key role she played in securing it.
"The EU Solidarity Fund grant is set up to help with the
public costs incurred in the immediate recovery from the floods.
However it is right that communities themselves should benefit
from all of this additional money and so I am today confirming a
new Restoration Fund of almost £31million for local authorities.
This will be made available to local authorities, police
authorities and fire and rescue authorities on the basis of costs
incurred in dealing with the problems since the summer. Because
central Government will formally account for the EUSF grant, local
government can be free to use this money as they see fit to ensure
it makes a real difference."
Local authorities will be consulted on how to allocate this
money. Authorities will be asked about the costs they have
incurred to help us take decisions about payments to be made to
them in due course.
Notes to Editors
1. Following the floods the Government submitted an application
for funding from the European Union Solidarity Fund. The European
Commission recently approved payment of around £110 million as a
contribution to the costs of recovery.
2. Due to the UK abatement mechanism, agreed between Government
and the EU and in place since 1984, the net value to the UK of
this allocation is around £31m, of this a small amount will go to
Wales and Northern Ireland, which is in proportion to the level of
damage incurred between the three countries. The net value to the
UK is around one third of the EUSF payment. It is calculated as
the full benefit (around £110m) minus the UK contribution through
the EC Budget (around £19m) and the resultant reduction to the UK
abatement (around £60m).
3. The UK abatement is an important mechanism to promote fairness
with respect to the UK's contribution to the EC budget. It is
calculated by the Commission each year on the basis of a formula
contained in the Own Resources Decision and does not permit
individual exemptions. By the end of 2007-08 it is estimated that
the abatement has been worth around £55 billion to Britain since
its introduction in 1984 and is forecast to be worth an average of
around Euro 6bn per year in the current EC Budget period (2007-13).
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