The Government is increasing business grants to support companies in high-alert level areas.
How are the grants changing?
- The Government will be supporting cash grants of up to £2,100 per month;
- This will primarily be for businesses in the hospitality, accommodation and leisure sectors who are adversely affected by the restrictions on high-alert level areas; and
- The grants will be available retrospectively for those areas that have already been negatively impacted by the restrictions.
How much funding will the Local Authorities receive?
- 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;
- This is equivalent to 70% of the grant amounts given to legally closed businesses (worth up to £3,000 per month); and
- 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 may not be in the business rates system.
What is the eligibility criteria?
- Local authorities have the freedom to determine the precise eligibility criteria for these grants in their local areas;
- The guiding principle for local authorities is to use the funding to support businesses which have not been legally required to close, but which are nonetheless severely impacted by reduced demand caused by Tier 2 restrictions on socialising.
How to apply
- Grants will be administered by Local Authorities, and businesses are likely to need to apply to their local authority for support; and
- It is up to local authorities to determine the payment schedule and timings for these grants.
This scheme will initially run until April, with a review point in January.