THE government is to review the Riot (Damages) Act 1886 following the 2001 disturbances in Burnley, Bradford and Oldham.

Under the system if a disturbance is declared a riot, the local police authority has to pay out for damage to businesses and properties.

So far Lancashire Police has refused to pay out on 16 claims in Burnley, claiming the disturbances were not a riot.

However, Greater Manchester Police have paid out £8,963.91 for the Oldham riots and West Yorkshire £450,000 for the Bradford disturbances.

The government is to examine whether to keep the 117-year-old Act as it is, repeal it entirely, or reform it to limit the amount of public cash paid out by police authorities.

The consultation paper issued by the Home Office says it is right that something should be done to stop the tax payer facing unlimited liability for riot damage when insurance is available and some compensation could be paid by the court.

But it accepts that there can be problems over insurance claims from businesses caused by riots.

The government is asking for people's views on the issue before considering what to do next year.