Prime minister says any business damaged during rioting can seek compensation under Riot Damages Act, even if uninsured

£20m high street relief fund has been set up by the government to stop some of the shopkeepers whose stores were destroyed during the riots from going out of business.

The prime minister announced that any business damaged during the rioting would be able to seek compensation under the Riot Damages Act, even if uninsured, with the claims window extended to 42 days.

The Association of British Insurers estimates the industry will pay out in excess of £200m as a result of the four nights of rioting and looting around the country. The £20m high street support scheme, said David Cameron, would help "get businesses trading again".

The pot, which is being jointly funded by the departments for Communities and Local Government, and Business, Innovation and Skills, will be distributed by councils who can use it to reduce business rates bills, finance building repairs and encourage customers back to the affected areas. Cameron also promised to "weed out" unnecessary planning regulations including those that make it difficult for shops to put up protective shutters.

British Retail Consortium director general, Stephen Robertson, said the initiatives would help many shops "get back on their feet". He added: "Our biggest fear is that otherwise successful retailers are pushed into insolvency by the events of this week. The retail sector has been battling difficult trading conditions for much of this year and sadly for some shops these attacks will be the final straw. Even where shops do manage to stay in business it is likely not all jobs will survive."

Figures from the Local Data Company, which tracks high streets and retail parks across the UK, suggest that more than 48,000 of the 476,000 outlets it monitors were affected either through direct attacks on their premises, or indirectly through lost trade. LDC director Matthew Hopkinson said two-thirds of those hit were independents with fewer than five outlets.

"These figures are horrifying in terms of the damage that has been done to an already struggling sector," he said. "The retail sector is a major contributor to inner city regeneration projects as well as employing thousands of people."

In his speech to parliament, Cameron said "young people stealing flat screen televisions and burning shops was not about politics or protest, it was about theft," and Robertson welcomed the government's acknowledgment of the severe impact the riots had had on the retail sector. Peter Cowgill, the executive chairman of JD Sports, which was one of the worst hit companies during the looting, has said that up to 30 of its stores were damaged and the financial impact for the stock market listed chain could be in excess of £10m.

The Association of Convenience Stores also welcomed the extension for claims under the Riot Damages Act from 14 to 42 days, which it had called for in its discussions with the home secretary and business secretary this week. "We are grateful they have listened and have taken this practical step," said

ACS chief executive, James Lowman. "We welcome the fund to support high streets, and the further funding to help repair communities. Retailers have to be at the heart of rebuilding the communities they serve."