Flood-hit firms could be eligible for £100k support

Flood-hit firms could be eligible for £100k support

24 January 2024

DOWNPATRICK businesses impacted by November’s devastating town centre flood, which could be eligible for up to £100,000 in financial support, will see the money provided in two instalments, it has been revealed.

It has also emerged this week that some businesses which missed out on initial financial support in the wake of the catastrophic flood could now get help. 

A specialist independent loss assessor is to be appointed to verify all compensation claims and will crucially examine stock losses and not solely damage to the premises or equipment.

Shortly before Christmas, local politicians met with a senior civil servant at the Department for Economy to discuss ongoing support for businesses impacted by the flood which engulfed the town centre.

They have now been provided with a progress report, with the government department planning to publish an update of the financial scheme before the end of this week.

The delay in providing an earlier update is being blamed on widening the compensation criteria to allow more businesses to be included. 

South Down MLA Patrick Brown and Downpatrick councillors Cadogan Enright, Oonagh Hanlon and Philip Campbell have welcomed the government department’s update.

Mr Brown hopes that widening the scope of what businesses can claim for which will include stock lost due to floodwater.

“The Department for Economy has received assurances from the Treasury that it can run the compensation scheme into the next financial year,” he explained.

“Whilst this suggests claims will take some time to process, it also means the process won’t be rushed and they will be able to tailor the criteria to ensure fairness and inclusion of as many businesses as possible.” 

Mr Brown said there will be a two-tranche model for the next round of financial compensation, with £10,000 available relatively quickly to aid cashflow and the remainder of the cash up to a maximum of £100,000 paid at a later date subject to departmental loss assessment.

In addition, he said there will be a parallel claims process for businesses previously excluded from the £7,500 grant that was paid in the immediate aftermath of the flood, but no detailed information on the mechanics of this process is available.

Mr Brown said it is his understanding that claims will be examined on a case by case basis, with the remainder of the £15m pot made available late last year to support flood hit traders used to fund new claims.

“This is a welcome step in the right direction to supporting businesses in recovering from the flooding and the £10,000 initial grant will be vital to aiding cashflow whilst businesses await the higher level grant,” he said.

“I’m pleased the government department has taken on board the requests made by myself and businesses to include stock losses and to find a way to include those previously excluded from funding.”

Mr Brown said that while questions remain, hopefully everything will be clearer when the scheme goes live next week.

He is also encouraging businesses to gather receipts and invoices to facilitate a smooth and swift process.

Cllr Hanlon said it was important that businesses are provided with the financial support they are entitled to as soon as possible.

It was confirmed last month that in addition to the financial support for the Downpatrick business community, the Department for Communities is making £180,000 available to help finance what is being described as an intensive marketing campaign.

The money comes at an extremely difficult time for town centre traders which still face significant challenges in the wake of November’s devastation.

The planned marketing campaign is designed to help inject life into the town as it continues to recover from the once in a generation flooding event, with politicians keen for the business community to be given a key input.

Currently, the Department for Communities is working closely with the Downpatrick Regeneration Group supporting innovative proposals in a new blueprint designed to put the county town back on its feet. 

Cllr Enright said while the £100,000 grant scheme for businesses is vitally important to help traders  recover, the town centre also needs to attract residents and visitors, especially in the commercial low season of January and February. 

He said the £180,000 regeneration fund from the Department for Communities is very much welcomed, confirming that he will continue to press the local council to clarify how the money will be spent.