Government must protect all employers from terror attacks
3 min read
Labour MP Neil Coyle writes about a change in legislation concerning businesses affected by terror attacks, such as those in London Bridge and Borough Market in his own constituency, that lost over £2 million collectively, after the 2017 terror attack.
Last week, the Treasury has announced it will update legislation to ensure businesses are better protected from terror attacks.
Under current laws, ‘physical damage’ to property from terror attacks is covered as the system was built after 1990s Provisional-IRA incidents targeting economic infrastructure. Businesses affected by more recent marauding knife attacks or who lose access to premises during police investigations following such attacks are not protected.
It has been suggested that the Treasury was alerted to flaws in the current framework two and a half years ago. The problems with the existing system were sadly brought clearly to light when three murderous cowards attacked London Bridge and Borough Market in my constituency last June. The attack was brutal but short. The police cordon lasted a further ten days, costing 150 local businesses over £2 million collectively.
The losses arose from being unable to access premises, produce and vehicles. Contracts to supply a hotel chain were lost by one trader due to the inability to access stock. Bookings were also lost by multiple restaurants and the London Bridge Experience.
Insurers were initially slow to help. Some insurers tried to avoid compensating firms affected. Most have now settled claims. AVIVA have sadly failed to live up to public expectations and have badly let down businesses affected by the attack.
Thankfully, the local community, general public and other businesses have been far more supportive. Public donations, business-to-business support and local help has kept some traders afloat, including covering mortgage payments for one micro-business. The Borough Market Trust has administered over £100,000 of business and public donations via the brilliant local charity, United St Saviour’s. Some firms have also offered voucher systems to boost trade at the market after the attack, including over £25,000 in help from News UK who are based locally.
Ministers have repeatedly claimed that ‘terrorists will not win’ but offered nothing in direct help to ensure their words were meaningful. The Government has not provided a penny to date. In stark contrast, Labour-run Southwark council has provided over £100,000 in rates relief and Sadiq Khan has also provided £300,000 from City Hall.
I hope that last week’s news will mean businesses get more help. The Government can still help those affected in my constituency and across the UK in any future attack. The British Insurance Brokers’ Association claim that just 130,000 of the UK’s 5 million businesses are covered by the current system. This needs addressing urgently.
The Government has said it will bring forward legislation to update the 1993 Act. This is essential and overdue. The Government has a very limited legislative programme currently and there is ample space to ensure this small but crucial Bill now comes forward with Labour support.
Neil Coyle is the Labour MP for Bermondsey and Old Southwark
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