HOUSEHOLDS and businesses hit by this winter's sever weather are to get a £1500 grant from the Scottish Government to help with repairs, First Minister Nicola Sturgeon announced during a visit the flood-hit north-east.

The area has been battered by heavy rain which caused homes to be evacuated in some parts of Aberdeenshire, severe disruption to travel, and triggered two severe flood warnings for Inverurie and Kintore in recent days.

The Scottish Government is making £12 million of new funding available to help with the clean-up of areas of the country affected by Storm Frank, including a £5 million fund for councils to replace damaged infrastructure.

The funding is in addition to the £4 million announced by the Deputy First Minister in his budget statement, bringing the total package of support for those affected by the adverse weather to more than £16 million. Scotland will also share in a £50 million pot announced by Westminster.

It comes after experts warned that the final bill for the damage to the economy caused by the winter rains may rise as high as £700 million, while those affected could see their insurance premiums doubled.

Sturgeon said: "In the face of devastation Scotland's communities have rallied together and shown real strength. I have met with some local business owners who have made a real difference by offering vital support and once again I am amazed by the determination and dedication of all of our emergency services who are working around the clock to save homes and livelihoods.

"We do not yet have confirmation of consequentials coming from UK Government flood funds - however, now that the picture of those who need support is clearer, the Scottish Government is acting now to make sure that the people who need help get it."

From the total support package of £16m, some £5.8 million will be made available to support households and business properties.

Councils which have suffered the most damage as a result of the flooding have been allocated a share of the total fund, but people in any part of Scotland who have suffered flood damage can apply for a grant.

In addition to flood relief support, businesses whose ability to trade has been severely affected by flooding will be able to apply for an extra grant of £3,000 funded by the Scottish Government and administered by their local authority.

Dozens of homes were evacuated in Inverurie, Port Elphinstone and Ellon in Aberdeenshire as the swollen River Don sent flood waters racing down the streets on Thursday night and Friday morning.

Water also poured from the River Ythan, prompting the emergency services to mount an operation to rescue residents.

The Donside area, Keith, Huntly, Turriff, Kintore and parts of Aberdeen were also affected by the flooding.

The Scottish Environment Protection Agency (Sepa) said it expects river levels to fall gradually, but a spokesman warned of the possibility of "residual impacts" in areas such as Kintore and Inverurie.

Sturgeon, who was joined by Alex Salmond at the Inverurie Academy rest centre yesterday, said the emotional impact of the flooding was impossible to quantify.

She said: "I have spoken to people here and in Newton Stewart who have had their homes and businesses flooded and the devastation is heartbreaking.

"We want to help as much as we can but there's nothing you can say to someone to take away the pain of losing their personal possessions or seeing their homes flooded.

"That's the bit of this that is always going to be impossible to quantify. On the other side, the community spirit that we have seen has been heartwarming and quite incredible."

The First Minister spoke to residents in Canal Crescent and Ritchie Row, where homes suffered when the River Don burst its banks on Thursday night.

Some people were pumping out water while others used shovels and brushes to try to get rid of the remaining flood water. Residents were throwing their damaged belongings in skips, and electrical engineers were out tending to a sub station.

Sturgeon entered several homes and told residents she was sorry to be meeting them under such circumstances, while wishing them the best as they tried to get their properties back to normal.

She said: "Our emergency services, police, fire, councils, utility companies, transport operators - everybody has pulled together.

"You can't exaggerate the devastation, but it has also brought out the best in communities as they respond."

Insurance experts warn that Scots will face a hefty bill for December and January's rains, with accountants PriceWaterhouseCoopers (PWC) saying that economic losses could be between £350m and £700m, with insured losses around £175m to £350m.

Mohammad Khan, general insurance leader at PWC in Scotland said: "Ongoing flooding in January continues to affect a large number of homes and businesses, many of whom were not prepared to be significantly affected by the storms.

"Unfortunately this may result in significantly higher premiums when they come to renew their policy next year...For some businesses this may result in insurance premiums increasing by over 100 per cent."

Meanwhile, Forecasters warn that the extreme wet weather of recent weeks will now give way to snow and ice as a blast of Arctic air arrives from the north.

Forecasters at the Met Office predict that temperatures will start to fall today, with the worst of the weather set to peak around Wednesday, with widespread ice and snow in many areas.

Their spokesman said: "We'll see temperatures down to single figures for much of next week as the weather turns colder and we get a real taste of winter.

"While this will bring an end to the wet and stormy spell we've had recently, it will bring its own problems in areas where there is still standing water left over from floods or where the ground is saturated.

"People should be aware of this and take sensible precautions when driving and out and about."