'Slap in the face' for Chesterfield business owners denied flood recovery government grant after Storm Babet

Chesterfield MP Toby Perkins has been contacted by numerous businesses affected by Storm Babet, who had been expecting to receive the Business Flood Recovery Grant, only to learn that due to the restrictions applied by central government, they do not qualify.

The Government guidance sent to Chesterfield Borough Council states that an application must be rejected if the scheme eligibility criteria are not satisfied in full. A key consideration is that funding must not be used to reward ‘poor business practice’, for example if a business has made no efforts to seek appropriate flooding insurance.

Local authorities must determine that appropriate flooding insurance cover is in place or the business actively made attempts to insure the premises against flood damage on at least one occasion in the period since 1s January 2023.

Mr Perkins said: “This is a real slap in the face to the hardworking business owners affected and a truly heartless approach from the Conservative Government.”

In Chesterfield, many businesses are not covered by flood insurance as they are not eligible due to being in high flood-risk areas.

One of them, the Anchor Pub at the junction of Factory Street and Chatsworth Road in Brampton, lost all their equipment, stock and furniture in the floods with water damaging the cooling and refrigeration systems as well as the kitchen.

After an unsuccessful application for the government flood recovery grant, a pub spokesperson said they had been told by the council that they had filled in the application wrong and would not be eligible due to their policy stating they were excluded from flood damage insurance.

The pub added: “Surely if I had flood damage included in my policy I wouldn’t need the grant and wouldn’t be eligible?”

Mr Perkins has written to the Secretary of State for Levelling Up, Housing and Communities, asking for an urgent review of the scheme to ensure all affected businesses can access the grant.

He said: “Many of the businesses in Chesterfield had tried numerous times to secure flood insurance after the 2007 floods but found it either impossible to secure cover, or at a cost that was simply not sustainable for the business. After pursuing this for many years, many of these businesses did not put themselves to the time and inconvenience of re-applying again in the months from January to October 2023 - why would they when it has not been available for so long?

"In your guidance you suggest that businesses who do not have insurance are guilty of poor business practice. This seems a most heartless response to a business seeking a measly £2,500 grant when they have been flooded. Let me assure you that none of these businesses, having experienced weeks of upheaval, trauma and disruption, would consider £2,500 to be a 'reward'. Can you please look again at this as a matter of urgency and tell me if you would be willing to re-consider this restriction to allow the struggling businesses in my constituency, and across England, to access the recovery grant?”

Councillor Tricia Gilby, leader of Chesterfield Borough Council, said: “In administering the Flood Recovery Grants to flood-affected local businesses, we have to adhere to the guidance that has been issued by the Government. The guidance is clear that for a business to be eligible the owners must have attempted to seek appropriate flooding insurance in the last twelve months.“We have questioned this with the Government both directly and through Toby Perkins MP as it means that many flood-affected Chesterfield businesses will sadly not be eligible for the Flood Recovery Grant.

“We will nonetheless continue to work with the landlords at The Anchor Pub to see if a Flood Recovery Grant can be paid to them recognising the devastating effect that Storm Babet had on their business.”