£4.6 billion in new lockdown grants to help businesses and protect jobs.
Retail, hospitality and leisure business sectors will be receiving a grant up to £9,000, the Chancellor has announced.
- Chancellor has announced one-off top up grants for businesses in retail, hospitality and leisure worth up to £9,000 per property to help them through to the Spring
- £594 million discretionary fund also made available to help other affected businesses
- Comes in addition to £1.1 billion further discretion grant funding for Local Authorities, Local Restriction Support Grants worth up to £3,000 every month and extension of furlough scheme
This follows the Prime Minister’s announcement the previous night that these businesses will be shut until February middle to help control the virus and along with the wide range of existing support, provides them with assurance through the Spring.
The cash will be provided on a per property basis to help businesses through the recent restrictions and is expected to benefit more than 600,000 businesses, worth £4 billion altogether across all countries of the UK.
Chancellor Rishi Sunak stated:
“The new strain of the corona virus is a huge challenge and whilst the vaccine is being rolled out, we have to tighten restrictions further.”
“Throughout the pandemic we’ve taken swift action in safeguarding the 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 also help sustain jobs, so workers can be ready to return back once they are able to reopen.”
A further £594 million is also being made available for Local Authorities and the Devolved Administrations to help various businesses not eligible for the grants that may be affected by the restrictions. Businesses should apply to their Local Authorities.
The latest one-off grants support businesses worth up to £3,000 for closed organizations and up to £2,100 every month for affected businesses once they reopen.
The government has also given 100% business rates relief to retail, hospitality and leisure businesses, £1.1 billion existing discretion financing for Local Authorities, the leave scheme now extended till April and 100% government banked loans, extended until March.
- One off top-ups will be granted to shut businesses as follows:
- £4,000 for businesses with a rateable estimation of £15,000 or under
- £6,000 for businesses with a rateable incentive between £15,000 and £51,000
- £9,000 for organizations with a rateable estimation of over £51,000
- Any business which is legally needed to close, and which can’t operate successfully remotely, is eligible for a grant
- Business support is a devolved strategy and therefore the responsibility of the devolved administrations, which will get extra funding because of these announcements in the usual manner:
- Scottish Government will get £375 million
- Welsh Government will get £227 million
- Northern Ireland Executive will get £127 million
- This will add to the funding which has just been ensured by the UK Government, to keep on providing the devolved administrations the certainty they need to plan their COVID-19 response in the months ahead
- Small businesses in the devolved business should also have the option to benefit by other UK-wide measures in the government’s unprecedented package of support for business, including the different business lending schemes and the extension of the Self Employment Income Support Scheme.