We may have entered a new year, but with the start of a third national lockdown, for many businesses, nothing has changed. Although not confirmed, the new lockdown is likely to last until spring, which is worrying many business owners. Fortunately, Chancellor Rishi Sunak has announced that the government will provide much-needed funding for those most affected by the new restrictions.
The new support scheme, worth $4.6 billion, is grant-based and only available for specific sectors, namely hospitality, leisure and retail. More specifically, businesses within this sector that have been forced to close due to lockdown. The maximum grant available is £9000, but the amount that is received will be calculated based on the rateable value of business premises.
The new scheme is welcome news for many companies that have already been hit hard by multiple lockdowns. The Chancellor hopes the grants will help to keep businesses open and allow workers to return to their positions once restrictions are lifted.
Eligibility
Before applying for this new grant, businesses need to check whether they’re eligible and meet the requirements. As already mentioned, this scheme is only available for those in the leisure, retail and hospitality industries- specifically those that have had to close due to the lockdown and cannot work remotely.
The grant is a one-off payment, and the amount will be dependent on the rateable value of your premises.
- Businesses with a rateable value of £15,000 and under will receive £4,000
- Businesses with a rateable value between £15,000 and £51,000 will receive £6000
- Businesses with a rateable value over £51,000 will receive £9,000
Application
Although the grant is coming from the government, it will be provided by your local council. Therefore, you need to visit your local council’s website, using this online tool. You can also visit your council website for more information the grant, who is eligible and what evidence will need to be submitted.
Further Help
Whilst this new grant will provide much-needed assistance for many business owners; not everyone is eligible, so what other help is available?
First and foremost, the furlough scheme has been extended until April- meaning that during this time, the government will continue to provide up to 80% of the cost of wages.
The Self Employment Income Support Scheme has also been extended to April. The scheme has been running since the start of the first lockdown, with three grants being provided so far and now a fourth is on the way.
Company owners are reminded that there are other existing grants available, for example, the business lending packages – CBILS and BBLS. Furthermore, the VAT relief measures for businesses in the hospitality sector will run until the end of March.
In terms of new funding, the Chancellor has also rolled out a £594 million discretionary fund to assist businesses who are struggling during the lockdown. This will be given to local authorities and devolved administrations, who will then decide which businesses receive the funding.
It’s a very difficult time for many businesses right now but there is help available. However, with so many different schemes available, it can be confusing to know what applies to you. If you need help, you can visit the official government website for information on all the different measures. Alternatively, you can talk to us to help help you to make sense of all the different schemes.
