The Government has announced £1.1bn of funding for two grant schemes to support those affected by the new national restrictions that have now come into force.
The Local Restrictions Support Grant is a mandatory grant for businesses that have a rateable value and that have been forced to close or stop the majority of their business activities. For the four-week period of the national measures eligible businesses will receive one payment per property. The rate of payment for eligible businesses will be:
- For properties with a rateable value of £15k or under, grants to be £1,334 per four weeks;
- For properties with a rateable value of over £15k and below £51k, grants to be £2,000 per four weeks;
- For properties with a rateable value of £51k or over, grants to be £3,000 per four weeks.
The Additional Restrictions Grant is a discretionary scheme for those businesses who have been severely impacted by the new national lockdown but do not have a rateable value or have not been forced to close The payments available for eligible businesses will be:
- For businesses that work from a shared workspace or do not own or rent their own business premises, grants to be £1,334 per four weeks;
- For businesses that own or rent their own business premises, grants to be £2,000 per four weeks;
- For businesses that own or rent their own business premises and are larger in size (based on headcount, revenue or total fixed cost base), grants to be £3,000 per four weeks. Size thresholds for this tier will be detailed in the application form.
As part of the application form, businesses will be required to explain the detrimental impact that the new national lockdown has had on their operations.
The Government has also been announced that the furlough scheme is to be extended, with employees receiving 80% of their current salary for hours not worked, at least, up to the end of March.
Full details of the scheme, eligibility and how to apply, will soon be announced and we will communicate this as soon as possible.
