Magazine article Public Finance

Council Pledges Aid to Tornado Victims

Magazine article Public Finance

Council Pledges Aid to Tornado Victims

Article excerpt

Birmingham City Council has this week confirmed that it will offer emergency loans to uninsured residents whose properties were damaged by the tornado that tore through the city on July 28.

But the authority has rejected calls for it to foot the repairs bill for home owners and businesses that do not have insurance, saying it would not be fair on those who had taken out cover.

Instead, Birmingham will offer the loans, possibly interest-free, and is seeking emergency funds from the government to help cover the costs. Strategic resources director Stephen Hughes said that in the meantime the council would fund the loans from its own budget.

'Clearly the council can't take full responsibility where people are uninsured. If we did that no one would take out insurance and we would end up repairing every damaged house in the city,' he added. …

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