SMALL businesses in Worcestershire are raining down criticism on the Government's proposal to exclude them from its new flood insurance programme.

Called Flood RE, the draft regulations included provisions for domestic properties, but ministers have decided to exclude small firms.

Judi Brazkiewicz, chairman for the Federation of Small Businesses in Worcestershire, said: “This is going to have serious consequences for county businesses, many of which has been victim to flooding over the past few year. I just don’t understand why Government has chosen this path. On one hand they tell us that small businesses are going to be the salvation of our economic recovery and on the other they exclude them from the Flood RE scheme.

"The big issue for business is that they are often unable to move, either because of cost, customer catchment areas or simply needing to be there. The Hampton Ferry Cafe at Evesham wouldn’t be much good if it relocated to the town centre and as for Severn Cruises at Upton on Severn, need I say more?

"Small businesses are always disproportionately affected by adverse trading conditions, whether that’s disasters such as a flood or cyber attack, or, more frequently by issues such as: late payment or shop lifting. Government needs to understand the small business profile; they say they do, but sometimes I really do wonder.”

John Allan, FSB national chairman, added: "The Flood RE draft regulations cause fresh uncertainty for the one in 10 small businesses at risk of flooding. Many small firms are already finding it difficult to find flooding insurance with as many as 50,000 businesses potentially affected. Three per cent of these small businesses currently say flood insurance is unaffordable. Without being included in Flood RE there is nothing in place to protect the smallest of businesses, which are the most vulnerable. With potentially no provision through the open market, firms will now have nowhere to turn and so will be at risk. Ministers should look again at the availability of affordable and comprehensive flood insurance for small businesses, potentially through a dedicated Flood Re style agreement. The financial cost to small businesses following the 2012 flooding was £200m. We cannot hope to create a buoyant economy if vulnerable small businesses are not sufficiently protected from unpredictable and severe weather that in the worst cases can close a business.”