This lockdown’s announcement arrived with new support from the Chancellor for businesses in the hospitality, leisure and retail industries. Will you benefit from the new grants?
What support is widely available?
The furlough scheme is extended until April 2021. 100% government backed loans are also definitely available until the end of March. And there is already the opportunity to apply for grants worth up to £3,000.
The Self Employment Income Support Scheme (SEISS) is the government’s financial support for self employed businesses. The third round of grants are available until April this year and there is confirmation that there will be a fourth grant. But details of amounts and how long it will be available haven’t been announced yet.
What is the extra support for closed businesses in the retail, hospitality and leisure sectors?
Chancellor Sunak has announced an extra, one off grant for businesses in the leisure, hospitality and retail sectors. It’s for those who have to close their business during this lockdown because they can’t operate remotely. You don’t have to repay the amount you receive.
It is based on the rateable value of business premises.
- Properties worth up to £15,000 can get a grant of £4,000
- Properties worth between £15,000 and £51,000 can receive £6,000
- Properties worth over £51,000 can claim £9,000
It will benefit at least 600,000 business establishments and be a total investment of £4 billion. There is also 100% business rates relief for businesses in these sectors.
In a press release, Chancellor Rishi Sunak said: “The new strain of the virus presents us all with a huge challenge and whilst the vaccine is being rolled out, we have needed to tighten restrictions further. Throughout the pandemic we’ve taken swift action to protect lives and livelihoods and today we’re announcing a further cash injection to support businesses and jobs until the spring. This will help businesses to get through the months ahead and crucially it will help sustain jobs, so workers can be ready to return when they are able to reopen.”
What if my business isn’t eligible for this grant?
There is already £1.1 billion discretionary grant funding for Local Authorities in England. An extra £594 million fund has now been added to this. So you can apply for Local Restriction Support Grants of up to £3,000 per month and other local authority grants, if you don’t have business premises.
The devolved administrations of the other three UK countries are responsible for their own business support policy. And so the Chancellor has issued further funding to each of those governments:
- £375 million to the Scottish Government
- £227 million to the Welsh Government
- £127 to the Northern Ireland Executive
You need to follow the procedures of whichever country or local authority you live in, to receive the correct COVID 19 financial support.
The Chancellor is set to review the situation on 3rd March and set out the next set of short and long term financial planning for the country.
