Borough Market payouts on hold until ministers classify London Bridge attack as terrorism

Aftermath: One of the first pictures of Borough Market after the terror attack on June 3
Jeremy Selwyn
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The Treasury has been accused of delaying insurance payouts to dozens of victims of the London Bridge attacks by failing to classify the atrocity as “terrorism”.

Financial lifelines for businesses near the bridge and small traders at Borough Market are on hold because the insurance industry cannot pay up until Chancellor Philip Hammond states officially that it was a terrorist incident.

The deadlock was condemned as “foot-dragging” by the area’s MP who called on the Government and insurers to speed up help for traders facing disastrous losses.

The attacks on June 3, in which three jihadis killed eight people after driving into passersby with a van and then stabbing victims, were condemned within hours as “a brutal terrorist attack” by Theresa May as she called for new action against the “extremists and enemies” responsible.

The police, City Hall, Home Secretary Amber Rudd and the Cobra emergency response committee all described it as terrorism at the time.

Borough Market reopens - In pictures

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But the Treasury confirmed that it has yet to officially draw the same conclusion on behalf of insurance claimants. Under the insurance industry’s rules it only makes payments under terrorism cover once an incident has been formally classified as terrorism by the Treasury.

The companies waiting for payouts include the London Bridge Experience visitor attraction plus several market traders.

Labour MP Neil Coyle urged the Government to speed up its formal decision and said: “If we want terrorists never to win, then we need to protect small businesses and jobs from the effects of incidents like this with rapid payouts of compensation.

“A lot of Borough Market traders are facing great hardship because they lost entire stocks as well as being unable to trade for a week. Those whose insurance did not cover terrorist attack should get help from the Government.”

Pince Harry visits Borough Market as it reopens after the June 4 terrorist attack (John Stillwell/PA )
John Stillwell/PA

Ttraders at the ancient market are estimated to have lost £1.4 million. They include Grovers, a fruit and veg wholesalers who lost £17,000 in stock alone, and Applebeesfish outlet which was damaged in the attacks and lost £40,000 plus stock and wages.

Darren Henaghan, the market’s managing director, said traders who were specifically covered for terrorism were still waiting for payments pending the Treasury verdict.

An Association of British Insurers spokesman said Terrorist attacks are reinsured through a Government-backed firm called Pool Re which legally needs a terrorist attack to be confirmed.

He added:”We understand this is imminent. A Treasury source said the process had to be carried out within 21 days.A Treasury spokesperson said: “Following an established legal process, we certified the Manchester and Westminster attacks as terrorist incidents for the purposes of insurance after discussions with the relevant police forces.

“We are currently in active discussions with the Metropolitan police regarding the London Bridge attack and are confident that we will be able to provide certainty to insurers shortly.”

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