New Government Grants to Support Businesses and Protect Jobs
In response to the latest National Lockdown, the Chancellor has announced one-off top up grants for retail, hospitality and leisure businesses worth up to £9,000 per property that are intended to help businesses through to the Spring. A £594 million discretionary fund will also be made available to support other affected businesses.
This, together with the wide range of existing support, provides them with some certainty until the lockdown is lifted.
The cash will be provided on a per-property basis to support businesses in the retail, hospitality and leisure sector through the latest restrictions and is expected to benefit over 600,000 busines properties.
The one-off top-ups will be granted to closed businesses as follows:
£4,000 for businesses with a rateable value of £15,000 or under
£6,000 for businesses with a rateable value between £15,000 and £51,000
£9,000 for businesses with a rateable value of over £51,000
The Devolved Administrations
Business support is a devolved policy and therefore the responsibility of the devolved administrations, which will receive additional funding as a result of these announcements, as follows:
the Scottish Government will receive £375 million
the Welsh Government will receive £227 million
the Northern Ireland Executive will receive £127 million
What other grants are available if a business is not eligible for the one-off top up grants?
A further £594 million is also being made available for Local Authorities and the Devolved Administrations to support other businesses not eligible for the grants but who might be affected by the new restrictions.
The new one-off grants and the additional Local Authority grants will be available in addition to the existing business support previously announced by the Chancellor in November 2020, which included grants worth up to £3,000 for closed businesses, and up to £2,100 per month for affected businesses once they reopen.
Businesses should apply to their Local Authorities and visit their website for more information.
rradar tax adviser Caroline Lamyman says
“It is hoped that these new Government grants will help those businesses survive the current lockdown restrictions. The Chancellor has stated he will consider whether or how to extend support packages in the Budget on 3rd March. This will give him the opportunity to take stock of the range of support they have put in place and set out the next stage of the Government’s economic response.”
Caroline Lamyman, Tax Advisor at rradar