Midlands victims of riots waiting for £3m compensation

More than £3million in compensation claims involving businesses hit by riots in the West Midlands is still to be paid – 10 months after firms were targeted.

Thugs ran amok and caused millions of pounds worth of damage when they looted stock and smashed up shops in Wolverhampton, West Bromwich and Birmingham. But 124 claims worth £3.3m on behalf of businesses from across the region are still to be cleared.

So far, West Midlands Police Authority has paid out 169 claims for damaged stock and property totalling £570,000 as a result of applications through the Riot Damages Act.

All claims from uninsured firms have been settled, meaning businesses that did not have cover received payment as quickly as possible.

But claims settled are far outweighed by those still being processed through loss adjusters.

Councillor Bob Jones, the authority's finance chief, said it had a duty to look after public money, adding: "There are some claims that need more supporting evidence. We need to be satisfied losses claimed are valid.

"Our priority is to get people's businesses back up and running as quickly as possible but we need to have the correct evidence or we would be in breach of our duty to look after public money."

The Government said it would cover the costs of claims made through the Riot Damages Act, Victorian legislation that allows businesses and individuals affected to claim directly from the police, rather than their own insurer.

Among firms that have made a claim is the Sunitek.com computer shop on Broad Street, Wolverhampton. The riots cost owner Sham Sharma in the region of £50,000.

The overall policing of the riots, including claims for compensation to the authority, cost in excess of £12m, although most of the cost has been covered by the Government.

By Crime Correspondent Shaun Jepson