The total cost of the floods which devastated Ludlow and Bridgnorth was today revealed as more than £4 million – as the Government announced the stricken areas would receive just £50,000 each.

Ludlow’s repair bill has risen to about £2 million with businesses, residents and councils sustaining major losses.

And an ariel survey of the Severn Valley Railway revealed extensive landslide damage, which will see its repair bill rising above the £2 million mark.

But the Government today announced the regions would get just £100,000 of the £8 million being given to flood-hit local councils.

The biggest tranche – £2.15 million – goes to Kingston upon Hull City Council, which had claimed it was the “forgotten city” of the floods.

The Malvern Hills Council, which covers Tenbury Wells, will also receive £50,000.

A further £1 million has been made available to help the West Midlands’ tourism economy recover.

But civic leaders in Ludlow today described the Government cash as “a joke”. The cost of the damage in the town is 40 times the amount the council will receive.

Mayor Councillor Mrs Marie Glaze said: “It’s a joke. How can they justify that when the floods have cost the town a huge amount.”

“It isn’t enough. When you look at how much the floods cost, you have to say we should have been given a fair settlement and got more money. The people of Ludlow deserve better than this. It’s laughable, a joke.”

In Ludlow, 41 families are in line for relief payments with some cheques being written tomorrow.

The news of the cash comes as engineers battle to stop the riverbanks of the Corve falling away after floodwater washed away the bed to a depth of three metres. Boulders are being put in place at the spot where the Burway Bridge collapsed in a bid to prevent further damage. The cost of replacing the bridge will be £750,000.

Severn Valley Railway bosses today said the news of further damage means the re-opening of the Bewdley to Arley section could be pushed back by three weeks.

Trains between Bridgnorth and Bewdley have been suspended since the flash floods hit on June 19. The line has been breached in about 45 different places.