Scotland flooding 'has cost economy £700m' with more 'awful' weather to come

The succession of powerful storms and severe flooding which has devastated parts of Scotland over Christmas and the New Year has already cost the economy up to £700 million, experts have said as the country faces another day of heavy rain on Friday.

The “awful” run of weather, which forecasters said would not improve until at least the weekend, has dealt a hammer blow to the Scottish economy and is also likely to result in insured losses of up to £350m, according to the business services provider PwC.

The dire prediction came on another day of weather-related disruption which saw dozens of schools closed, many roads rendered impassable and key train routes suspended. Two severe flood warnings have been issued in Aberdeenshire, with some residents in Inverurie and Kintore being advised to evacuate their homes.

The Met Office has already confirmed that December was Scotland’s wettest month since records began in 1910, and PwC said continued rainfall into January meant there was “little relief in sight” for many businesses.

Some would have to pay an average of between £35,000 and £100,000 to repair their properties, as well as replacing stock damaged by floodwater, the firm estimated. Others may have been forced to closed their doors early or were affected by power outages and road closures that could delay or halt deliveries.

“Storms Frank and Eva were particularly hard on Scotland in particular and it is still difficult to ascertain what the full financial impact of the storms and the rainfall from this will be,” said PwC’s general insurance leader Mohammad Khan.

More than two dozen schools were closed today in Aberdeenshire, while motorists were advised not to travel unless it was “essential” and trains running between Aberdeen and Dundee were suspended. In Perth and Kinross, a mother and her children had to be rescued from their BMW by firefighters after it got stuck in floods in Killiecrankie.

The Scottish Environment Protection Agency said further significant flooding may lie ahead, with “very high” rain totals of up to 80mm expected in the north east of the country over the next 24 hours. Falling temperatures may also lead to snow and ice in the Strathclyde, Dumfries and the Borders.

During a visit to view flood defences in East Renfrewshire, the Environment Minister Aileen McLeod said local councils would be provided with extra financial assistance to deal with the immediate and unforeseen costs of flood damage.

“The Scottish Government’s resilience committee remains in constant contact with the relevant agencies as we continue to support affected communities and businesses,” she added. “As many areas focus on recovery, we are continuing to monitor the current flood alerts and work with local partners in affected areas.”