To help the businesses in this tough phase of Coronavirus and support them at the time of national restrictions, the amount of £2.2 billion will be received by small businesses from the government in England. The local authorities like councils will distribute grants of £2.2 billion to businesses across England.
The businesses which had closed due to this pandemic situation and the businesses which need support to run further will get benefited from the grant schemes introduced by the government. It will help in supporting livelihoods, protecting communities and people’s jobs.
For further details, the businesses should check the council’s website and they can expect the money which they are going to get will cover the 4-week period of national restrictions. The money was already transferred to councils on 13th November 2020. The ultimate aim is to sustain the business and protect the jobs. The grant schemes introduced by the government to support the businesses are as follows:
Local Restrictions Support Grants will be provided to those people whose businesses were severely impacted by the restrictions or the businesses which have had to close.
a) If the business owners have a rateable value below £15,000, then they will receive £1,334 per 4 weeks.
b) If the business owners have a rateable value between £15,000 and £51,000, then they will receive £2,000 per 4 weeks.
c) If the business owners have rateable value above £51,000, then they will receive £3,000 per 4 weeks.
On a discretionary basis, the Additional Restrictions Grant will be provided by councils. The businesses have had their trade affected by the restrictions; Additional Restrictions Grant (ARG) will provide local authorities with additional funding to support them.
The local authorities will distribute the sum of money to businesses which have been severely impacted by restrictions and the amount received is equivalent to £20 per head of their local population.
The businesses have been requested to be in contact with their local authority or council so that officials have payment and contact information for them. Government has clearly told that the 2 grants designed by them are specifically to support jobs and livelihoods. However, in regards to grants, the government has also announced that:
Until the end of the year, it is extended support to prevent business evictions.
The amount of £1.57 billion for Culture Recovery fund.
Until the end of March 2021, there will be reduced VAT for hospitality, accommodation as well as attractions and business rates relief for hospitality, retail, leisure as well as nurseries.
This is an extension for existing government-backed loan schemes and mortgage payment holiday for homeowners.
Also, this grant is an extension to the furlough scheme with the government covering 80% of wages until March.
This is more generous support to the self-employed which is equivalent to the generosity of the furlough scheme.
It has to be noted down that total money allocated to local authorities in each region has been calculated in proportion to local population size and estimates of the numbers of businesses required to close. To allow funding to be paid to local authorities, each will get an allocation. Where this is insufficient to meet needs, top-up payments will be made so each local authority has the funding it needs.
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