In the Chancellor’s Winter Economy Plan that, rather than paying in full at the end of March 2021, businesses will be now able to choose to make 11 equal instalments over 2021-22.
A further fund of £4.6 billion in new lockdown grants has been announced. Businesses in the retail, hospitality and leisure sectors are to receive a one-off grant worth up to £9,000.
Chancellor, Rishi Sunak made this announcement yesterday following the Prime Minister’s announcement that these businesses will be closed due to the recent lockdown and until at least February half-term in order to help control the virus.
A further £594 million discretionary fund has also been made available to support other impacted businesses and comes in addition to £1.1 billion further discretionary grant funding for Local Authorities, Local Restriction Support Grants worth up to £3,000 a month, plus the extension of furlough scheme.
The one-off top-ups of lockdown grants 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
- any business which is legally required to close, and which cannot operate effectively remotely, is eligible for a grant
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 in the usual manner:
- the Scottish Government will receive £375 million
- the Welsh Government will receive £227 million
- the Northern Ireland Executive will receive £127 million
This will contribute to the funding which has already been guaranteed by the UK Government, to continue to provide the devolved administrations the certainty they need to plan for their COVID-19 response in the months ahead
Small businesses in the devolved administrations should also be able to benefit from other UK-wide measures in the government’s unprecedented package of support for business, including the various business lending schemes (where the repayment terms were made easier as part of the Winter Economy Plan), and the extension of the Self Employment Income Support Scheme.
To contact your local authority regarding local lockdown grant funding:
Cambridgeshire County Council
Suffolk County Council
Or for further information, contact your local Chamber of Commerce, Local Enterprise Partnership, or The Federation of Small Businesses