What was done to help businesses get back on their feet following the 2011 riots?
This report focuses on the aftermath of the riots and how effectively financial support was provided to companies and individual traders whose businesses were damaged. In this instance businesses and properties were damaged by rioting, but much of the recovery process would be similar following other major incidents - for example flooding. For this reason, some of the lessons we have sought to identify in this report are specific to the riot recovery process while others are more general and could be applied to the recovery process following other incidents.
Many businesses have not been compensated fully for the damage they suffered as a result of the 2011 riots. Businesses that did not have sufficient insurance to cover the cost of the damage looked to the Government and the Riot (Damages) Act (1886) for help. Unfortunately this out-of-date piece of legislation often failed to cover the costs of damage leaving businesses out of pocket.
When businesses did qualify for compensation, it often took many months for them to be paid. Despite the Government, the Mayor and the insurance industry committing to do all they could to help businesses recover, the compensation claims process was slow for both claims made under the Riot (Damages) Act and to some insurers. This meant that some businesses only managed to stay afloat due to charitable donations. More should have been done by the Government, the Mayor and the insurance industry to speed up the compensation payment process.
Download this paper for the full report.