BUSINESSES IN ENGLAND that are required to shut because of local interventions will now be able to claim up to £1,500 per property every three weeks.
Businesses impacted by Covid 19 local lockdowns or targeted restrictions will now be able to receive grants worth up to £1,500 every three weeks.
To be eligible for the grant, a business must have been required to close due to local Covid 19 restrictions. The largest businesses will receive £1,500 every three weeks they are required to close. Smaller businesses will receive £1,000.
Payments are triggered by a national decision to close businesses in a high incidence area. Each payment will be made for a 3 week lockdown period. Each new 3 week lockdown period triggers an additional payment.
Chief Secretary to the Treasury Steve Barclay said: “These grants provide businesses with a safety net as they temporarily close their doors to help save lives in their local areas.”
Currently these payments are available in Blackburn with Darwen, Pendle, and Oldham as part of an ongoing trial scheme.
Any businesses still closed at a national level (e.g. nightclubs), will not be eligible for the 3-week payments.
How will local grants be paid?
If a business occupies a 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 £1000.
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 £1500.
The local grants will be treated as taxable income.
Local authorities will also receive an additional 5% top up amount of business support funding to enable them to help other businesses affected by closures which may not be on the business rates list. Payments made to businesses from this discretionary fund can be any amount up to £1500, and may be less than £1000 in some cases.
Local authorities will be responsible for distributing the grants to businesses and further eligibility criteria may be determined by them.