John Bownas, manager of the Hastings Business Improvement District, said Hastings was one of the worst hit towns in the UK during last month’s floods.
But he added that the town’s heavy rainfall came too late for businesses and residents to benefit from the fund after government ministers restricted eligibility to just the three days of Storm Babet.
The Flood Recovery Framework from the Department for Levelling Up, Housing and Communities (DLUHC) gives ministers power to activate grants and business rate relief to help residents and shop owners who are impacted by flooding relating to severe weather.
Under the scheme flooded households in affected areas can apply for up to £500 to give cash quickly to help with immediate costs and households and businesses significantly affected by recent flooding are eligible for 100 per cent council tax and business rates relief for at least three months.
Small-to-medium sized businesses in affected areas are also eligible for up to £2,500 from the Business Recovery Grant and eligible flood-hit property owners are able to apply for up to £5,000 to help make their homes and businesses more resilient to future flooding via the Property Flood Resilience Repair Grant Scheme.
However, Mr Bownas said Michael Gove, Secretary of State for Levelling Up, Housing and Communities, made the decision to only open access to the framework to areas that were hit directly by Storm Babet over the weekend of October 18 to 21.
Hastings town centre suffered major flooding on October 28, just days later, leaving shops and businesses, as well as homes submerged under several feet of water.
Mr Bownas said: “Just 10 months after we were last hit like this, the aftermath of Storm Babet brought tens of thousands of litres of floodwater rushing through the town. Businesses and homes have once again been ruined and left facing huge bills for damage that many simply can’t get insurance for any more.
“It’s frankly incredible that the Government is failing to recognise the scale of this impact and is cutting us out of the eligibility window for financial assistance.
“I just hope that this is down to a simple oversight and I've written directly to Michael Gove and hope he will agree to extend the dates covered by the framework so that our businesses can recoup a small percentage of what they lost during October’s floods.”
A DLUHC spokesperson said: “We understand how devastating flooding is for the communities, households and businesses affected and continue to work with partners in Hastings to fully understand the scale of impact from the recent severe weather.
“As soon as we receive further details from Hastings, we will be able to assess how best to support them.”