Government accused of making £400m flood 'profit'

1:34pm Sunday 11th May 2008

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COTSWOLD MP Geoffrey Clifton-Brown intends to take the Government to task over claims it made a profit' of £400million from the floods.

Mr Clifton-Brown told the Standard that the insurance industry reported that it paid out around £3billion in claims after the floods last summer.

These pay-outs would have resulted in £500million in VAT going straight to Government coffers.

"The Government has only paid out £100million for relief and I don't think they are going to pay more," Mr Clifton-Brown said.

"The exchequer has made a net gain of £400million. There is no reason that counties like Gloucestershire that were hard-up can't have some of this money.

"The Government said they don't answer how much is made on individual transactions so they are hiding behind a smoke screen."

Mr Clifton-Brown added that he intends to raise the matter in Parliament next week.