Small firms faced a total bill of £831 million due to the recent floods, according to new figures released by the Federation of Small Businesses (FSB).

The research showed that the average cost in flood-hit areas was £1,531 per business as the significant impact of the floods on commercial property continues to be felt.

Many areas in the South West of England are still dealing with severe flooding some three months after the first flood warnings were issued. Particularly hard-hit areas such as those in the Somerset Levels are still cut off by flood water and, even though water surrounding most villages is receding, the clean-up operation is expected to take at least another year.

Nine weeks of flood water have left homes there in a "ghastly" state - with rotting furniture, ruined appliances, mould and debris strewn over gardens.

More than 150 properties remain flooded on the Somerset Levels and Moors, while 11,000 hectares of agricultural land are still under water.

The FSB study revealed how it is not just the physical damage inflicted on commercial property that caused pain for small firms in affected areas.

Around one in three (32%) small firms in flood hit areas suffered from reduced demand for goods and services, according to the FSB's research.

Other flood-related problems included transport disruption that hindered the movement of goods and supplies (29%) and led to staff absences (16%).

The FSB has also expressed concern that small firms will find it difficult to obtain appropriate insurance following the floods.

David Canty, Strutt & Parker Associate Partner in St Albans explains: "Not all farms are insured for their full loss, and having faced two very difficult years some will see their business fold completely.

"For others, the flood waters are only the first hurdle, the next will be the challenge of feeding livestock for the next twelve months with little or no grass available even once the waters have receded."

More than one in three (37%) FSB members in flood-hit zones expect it to be more difficult to renew their insurance and more than half (59%) are anticipating their insurance will become more expensive as a result of being left out of the Flood Re support scheme.

FSB national chairman John Allan said: "In the past few weeks we have heard countless stories from our members who were left devastated by some of the worst flooding on record.

"Not only have they had to cope with a lack of demand for their services, many have had to close."

He said Government support has been welcome and needs to be kept under review to make sure small businesses that need help can get it.

But the evidence suggests that the exclusion of small firms from the Flood Re scheme has been "unhelpful", he warned.

"We want the Government and the insurance industry to look again at the support they have in place for small businesses in flood hit areas and see whether there is more help they can provide to ensure they have access to adequate and affordable insurance."

"It will be long haul for many farm businesses to get back to full production", comments Ian Bell, Director of the Addington Fund. "Experience from re-seeding after last year's floods tells us that grass yields can struggle to reach 25% of normal levels."