This does not show the government in a good light.
I think it shows the newspaper in a worse light. It's just as well TPTB didn't go with the "zombie outbreak" option.
We do have earthqaukes here, but they are very minor, very rare, and the loss of even a single life in an earthqauke in the UK is rare.
True. Although the fact that we do have earthquakes shows that the area is geologically active, despite not being on the edge of a tectonic plate. I saw a documentary once which claimed Mt Everest was to blame. Apparently there are stress fractures that stretch from the Himalayas over much of Europe, and one goes under the UK. Although no-where near the top of my list of things to worry about, it's hard to say that there definitely won't be a substantial earthquake here.
(Tornadoes, on the other hand, are surprisingly common. They wouldn't provide such a good exercise as they only affect a small area.)