§ Mr. OatenTo ask the Secretary of State for the Environment, Transport and the Regions if he will make it his policy to review the Bellwin rates to allow local authorities to claim for increased expenditure on flood emergency works. [160513]
§ Ms Beverley HughesFollowing the floods that were experienced between October and December 2000 my Department is reviewing the operation of the Bellwin scheme in co-operation with the Local Government Association.
A "Bellwin" scheme of emergency financial assistance may be activated to help a local authority with uninsurable clear-up costs following a disaster or emergency that involves destruction of, or danger to, life or property. Grant is normally paid at a rate of 85 per cent. of an authority's qualifying expenditure above a threshold. The threshold is the provision that a prudent authority might reasonably be expected to make for contingencies and emergencies (approximately 0.2 per cent. of its revenue budget).
186WFor the flooding Bellwin scheme grant was paid at a rate of 100 per cent. above the threshold to take into account the exceptional nature of the emergency. Bellwin grant is paid only in respect of current expenditure; capital expenditure is not eligible for grant.
Issues such as future funding will be considered as part of the review. There is also a separate review of flood defence funding.