Government ministers have announced (9 September 2020) new grants of up to £1,500 to help businesses shut down by local lockdowns or targeted restrictions.
Businesses in England required to close due to localised COVID-19 interventions will now be able to claim up to £1,500 per property every three weeks. This will be of particular interest for businesses in the North West hit by new local restriction rules.
To qualify for the grant, a business must have been required to close due to local COVID-19 restrictions. Announcements made by government indicate the eligible business will receive cash grants based on their rateable value as set out below:
– If a business occupies premises with a rateable value less than £51,000 or occupy a property or part of a property subject to an annual rent or mortgage payment of less than £51,000, it will receive £1,000 for every three weeks it is required to close.
– If a business has a rateable value more than £51,000 or part of a property subject to an annual rent or mortgage payment of more than £51,000, it will receive £1,500.
Payments are triggered by a national decision to close businesses in high-risk areas and it has been reported that there is are currently an ongoing trial scheme available in Blackburn with Darwen, Pendle, and Oldham.
Local authorities will be responsible for allocating the grants to businesses in circumstances where they are closed due to local interventions with the ability for them to add further eligibility criteria.
For those businesses not on the business rates list, local authorities will also receive supplementary government monetary support. Payments made to businesses from this discretionary fund can be any amount up to £1,500 and could be less than £1,000 in some cases.
The Government have stated that these local grants for closed businesses will be treated as taxable income. Businesses still closed at a national level (for example nightclubs) will not be eligible.
Full details of this latest announcement can be found here.
If your business has been affected by the local lockdown or you require any advice related to the ongoing challenges facing your business due to coronavirus, please contact us on 01254 679131 and ask to speak with one of our specialist advisers.
This information is correct as of 11 September 2020. This blog is for general guidance only. Recipients should not act upon any of the information provided without seeking specific professional advice tailored to your circumstances, requirements or needs. Please contact PM+M before making any decisions based on any matters relating to this blog.