Business Grants announced 22 October 2020

In addition to the extension to the Job Support Scheme for open businesses and the increased Self Employment Grants announced today, there were also some high level details of additional business grants announced.

Local Restrictions Support Grant (Tier 2) – to run until April with a review in January

  • This is additional funding to allow Local Authorities (LAs) to support businesses in high-alert level areas which are not legally closed, but which are severely impacted by the restrictions on socialising. The funding LAs will receive will be based on the number of hospitality, hotel, B&B, and leisure businesses in their area.
  • The funding will be backdated for areas that have had Tier 2 type restrictions from the point at which the restriction commenced.
  • It will be up to Local Authorities to determine what precise funding to allocated to each business, the guide amounts per the factsheet issued today suggests as an approximate guide:
  • For properties with a rateable value of £15,000 or under, grants of £934 per month.
  • For properties with a rateable value over £15,000 and below £51,000, grants of £1,400 per month.
  • For properties with a rateable value of exactly £51,000 and over, grants of £2,100 per month.
  • Business can choose to spend the grants as they wish.
  • This is equivalent to 70% of the grant amounts given to legally closed businesses (worth up to £3,000/month).
  • Local Authorities will also receive a 5% top up amount to these implied grant amounts to cover other businesses that might be affected by the local restrictions, but which do not neatly fit into these categories.
  • Grants will be administered by Local Authorities who will determine the payment schedule and timings for the grants, so how this will operate in practice is very unclear at present.

Businesses in Very High alert level areas will qualify for greater support whether closed (up to £3,000/month) or open. In the latter case support is being provided through business support packages provided to Local Authorities as they move into the alert level. This is still under discussion.