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Victims of last summer's floods in Oxfordshire are reeling after learning they are to get much less compensation from the European Union than originally thought.

Councils across the UK had expected to receive £110m from the EU's solidarity fund - a pot of money set aside for member states hit by natural disasters - after MEPs voted by a massive majority for the payout.

But it emerged this week that the recovery fund was only £31m - less than a third of the sum hoped for.

The Department of Communities and Local Government said the £110m figure agreed in March did not take into consideration the UK's special financial arrangement with the European Union.

In a deal struck in 1984, the EU pays money back to the UK to take account of the fact the country gives more to Europe than other member states.

However, one of the downsides of the agreement is that the UK is entitled to less from funds such as the solidarity one.

Last summer's floods cost Oxfordshire County Council alone more than £3m, while of the £88m the Government has already made available to flood-hit areas, the council has received just £111,000.

Charles Shouler, cabinet member for finance, said: "We were sceptical from the very beginning about how this money would be apportioned.

"This news just makes us all the more sceptical. We will fight Oxfordshire's corner and wait to see what method the Government comes up with for giving out what remains of the cash.

"At the moment I have little confidence we will receive much at all and it doesn't feel like the Government has fought our corner very well.

"I'd very much like to know where the missing £79m of European money has gone. We need answers from the Government."

Dr Caroline Lucas, who represents the city on the European Parliament, added: "It's disappointing the amount has been drastically reduced.

"I urge the EU to look again at the amount of money needed to compensate flood victims in the UK and to prevent more disastrous flooding."

Flood victim Colin Howes, of Botley Road, Oxford, said the UK had a raw deal.

The 69-year-old said: "I am very disappointed. Other countries seem to do all right out of the EU, but we seem to be the one chipping in all the time."

A Department of Communities and Local Government spokesman said the consultation as to how the money would be divided up had begun and that local councils would be able to spend their share of the £31m as they saw fit.

She said: "We understand people will be disappointed the total available is not more, but it is still a significant contribution to the costs of last summer's floods."

5:58pm Friday 9th May 2008

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