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This item was published during the term of a previous administration that ended in April 2007

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Emergency funding scheme to be streamlined

19/07/2006

Improvements are to be made to the operation and scope of the Bellwin Scheme following a consultation exercise.

The Bellwin scheme was introduced in 1983 to provide financial help to local authorities in the aftermath of large-scale emergencies.

The consultation exercise asked Scotland's 32 local authorities to consider the views of their communities and community planning partners in making their responses.

Changes proposed to make the scheme more streamlined, accessible and transparent include:

  • Increasing the financial support provided by the Executive under the terms of the scheme from 85 per cent of eligible expenditure to 100 per cent, together with a five fold increase in the allowance included for insurance excesses
  • Cutting the bureaucracy associated with the scheme by simplifying the process councils use to make claims - with the aim of ensuring resources are released as quickly and efficiently as possible
  • Simplifying and clarifying the guidance issued to councils
  • Consulting councils on revised financial thresholds for grant assistance which would more accurately reflect their budgetary position

Finance and Public Service Reform Minister Tom McCabe said:

"As I made clear when I recently launched our public service reform discussion document 'Transforming Public Services', the reform process needs to apply right across the whole of the public sector - including the Scottish Executive. I am determined that the devolved government for Scotland looks at its own systems and processes to ensure we do all we can to streamline the bureaucracy which impacts on the wider public sector.

"The changes I am announcing on the operation of the Bellwin Scheme will reduce the bureaucracy we impose on local authorities and deliver financial assistance to authorities faster to help them deal with the immediate aftermath of major emergency incidents as quickly and efficiently as possible.

"Of course there is much more to do on wider public service reform - the dialogue process has just begun. The changes to the operation to the Bellwin Scheme may be small in that context but nevertheless are an important step in the right direction."

The Bellwin Scheme exists to give special financial assistance to councils faced with an undue financial burden as a result of providing relief and carrying out immediate work following large-scale incidents or emergencies. Among the changes being introduced is an uplift of the grant payable to authorities from 85 per cent of the eligible costs (incurred above a threshold set for each authority) to 100 per cent.

The Bellwin Scheme is not the only source of funding available to councils faced with dealing with an emergency. In addition to making provision within their own resources, councils can also draw on insurance claims, greater freedom to undertake borrowing to fund capital expenditure and other specific grant funding from the Executive.

Page updated: Wednesday, July 19, 2006