Floods Recovery Minister John Healey said yesterday that all the extra money the UK is receiving from the European Union (EU) to help with flood recovery will be passed on to communities affected by last summer's floods.

Mr Healey announced that the Government was able to set up a Restoration Fund of almost £31million for English local authorities affected by last summer's flood to support their continued efforts to rebuild their communities because of the success of the UK in bidding for the European Union Solidarity Fund. This money is the net receipt from Europe and is on top of up to £88 million already made available to flood-hit areas to help them get back on their feet - with more financial support to follow. Funding will also be allocated to the Northern Irish and Welsh devolved administrations in line with the damage they suffered.

Clearance was given for the funding on 7 April, when the European Commission approved the amended EU Budget, and today we will consult local authorities on how it will be distributed. The new fund will be made available to Local Authorities, Police Authorities, Fire and Rescue Authorities on the basis of costs incurred in dealing with the problems since the summer. Local authorities will be free to spend this money as they decide according to local priorities. They are best placed to take these decisions.

Government will account for the spending of the European Union Solidarity Fund directly to the EU which means local authorities can continue to get on with the job of leading recovery efforts in their communities without having to deal with additional bureaucracy and associated costs or strict rules the EUSF involves.

The European Commission approved payment to the UK of around £110 million from the European Union Solidarity Fund, as a contribution to the costs of recovery. However, due to the UK 'abatement mechanism', agreed between Government and the EU and in place since 1984, the net value to the UK of this allocation is an extra £31m. John Healey confirmed that all this extra funding received from the EU will be paid to flood-hit local areas.