ES News email The latest headlines in your inbox twice a day Monday - Friday plus breaking news updates Enter your email address Continue Please enter an email address Email address is invalid Fill out this field Email address is invalid You already have an account. Please log in Register with your social account or click here to log in I would like to receive lunchtime headlines Monday - Friday plus breaking news alerts, by email Update newsletter preferences

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 21 show all Borough Market reopens - In pictures 1/21 Traders and visitors pause for a minute's silence to remember the victims of the London Bridge terror attack before the market bell is rung to mark the opening of Borough Market PA 2/21 London Mayor Sadiq Khan applauds in Borough Market, which officially re-opened today Reuters 3/21 Market trader Paul Wheeler rings the bell to open Borough Market for the first time since the London Bridge terrorist attack PA 4/21 Police officers stand inside Borough Market, which officially re-opens today following the recent attac Reuters 5/21 Traders and visitors pause for a minute's silence to remember the victims of the London Bridge terror attack before the market bell is rung to mark the opening of Borough Market PA 6/21 People walk through Borough Market in central London following its re-opening after the June 3 terror attack AFP/Getty Images 7/21 Stall holders prepare to open their stall in Borough Market Reuters 8/21 Pedestrians walk past Borough Market, which officially re-opens today Reuters 9/21 A stall holder speaks to a woman in Borough Market, which officially re-opens today Reuters 10/21 Cheesemongers work in Borough Market, Reuters 11/21 A police officer stands in front of an entrance to Borough Market Reuters 12/21 A woman sticks a sign onto a window in Borough Marke Reuters 13/21 Two women embrace in Borough Market, which officially re-opens today Reuters 14/21 Mayor of London Sadiq Khan joins traders and visitors for a minute's silence to remember the victims of the London Bridge terror attack before the market bell is rung to mark the opening of Borough Market PA 15/21 The Shard is seen behind Borough Market, which officially re-opens today following the recent attack Reuters 16/21 Customers queing up to buy paella from a stall in Borough Market whic has opened for the first time since the London Bridge terrorist attack PA 17/21 Customers at Borough Market which has opened for the first time since the London Bridge terrorist attac PA 18/21 Crowds gather a Borough Market as it re-opens Getty Images 19/21 People buy produce from a market stall in Borough Market, which has officially re-opened Reuters 20/21 People buy produce from a market stall in Borough Market Reuters 21/21 The market bell and plaque at Borough Market which has opened for the first time since the London Bridge terrorist attack PA 1/21 Traders and visitors pause for a minute's silence to remember the victims of the London Bridge terror attack before the market bell is rung to mark the opening of Borough Market PA 2/21 London Mayor Sadiq Khan applauds in Borough Market, which officially re-opened today Reuters 3/21 Market trader Paul Wheeler rings the bell to open Borough Market for the first time since the London Bridge terrorist attack PA 4/21 Police officers stand inside Borough Market, which officially re-opens today following the recent attac Reuters 5/21 Traders and visitors pause for a minute's silence to remember the victims of the London Bridge terror attack before the market bell is rung to mark the opening of Borough Market PA 6/21 People walk through Borough Market in central London following its re-opening after the June 3 terror attack AFP/Getty Images 7/21 Stall holders prepare to open their stall in Borough Market Reuters 8/21 Pedestrians walk past Borough Market, which officially re-opens today Reuters 9/21 A stall holder speaks to a woman in Borough Market, which officially re-opens today Reuters 10/21 Cheesemongers work in Borough Market, Reuters 11/21 A police officer stands in front of an entrance to Borough Market Reuters 12/21 A woman sticks a sign onto a window in Borough Marke Reuters 13/21 Two women embrace in Borough Market, which officially re-opens today Reuters 14/21 Mayor of London Sadiq Khan joins traders and visitors for a minute's silence to remember the victims of the London Bridge terror attack before the market bell is rung to mark the opening of Borough Market PA 15/21 The Shard is seen behind Borough Market, which officially re-opens today following the recent attack Reuters 16/21 Customers queing up to buy paella from a stall in Borough Market whic has opened for the first time since the London Bridge terrorist attack PA 17/21 Customers at Borough Market which has opened for the first time since the London Bridge terrorist attac PA 18/21 Crowds gather a Borough Market as it re-opens Getty Images 19/21 People buy produce from a market stall in Borough Market, which has officially re-opened Reuters 20/21 People buy produce from a market stall in Borough Market Reuters 21/21 The market bell and plaque at Borough Market which has opened for the first time since the London Bridge terrorist attack PA

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.”

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.”