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Flooding could cost £700 million

Thousands of businesses across Scotland have been affected by the flooding.
Thousands of businesses across Scotland have been affected by the flooding.

Hundreds of uninsured small businesses face a bleak future after the financial cost of the flooding in Scotland was put as high as £700 million.

Analysis by accountants PwC put the economic losses from the last month’s major flooding events at between £350m and £700m north of the border.

PwC Scotland private business leader Martin Cowie said the impact could drive companies to the wall.

Scottish Government minsters have been accused of stalling over the distribution of cash to flood-ravaged communities.

Ruth Davidson, the Scottish Conservatives leader, said Scots whose homes and businesses were wrecked by Storm Frank were seeing areas over the English border rebuilt while they waited for cash to filter through.

Scotland is expected to get an allocation of about £5 million under the UK Government’s £50 million relief fund announced at the end of last month.

She accused the SNP administration of being too slow in distributing those funds to those in need and called on the First Minister to explain why it was not “matching the action” seen down south.

Nicola Sturgeon said that was “unfair” given the £4 million already handed to areas including Alyth following Storm Desmond in early December.