New lockdown grants to support businesses and protect jobs announced

New lockdown grants to support businesses and protect jobs announced, please read below for more information:

Following last nights announcement that many businesses will be closed until at least February half-term in order to help control the virus, the Chancellor has announced that businesses in the retail, hospitality and leisure sectors are to receive a one-off grant worth up to £9,000 per property to help through to the Spring.

The new one-off grants come in addition to existing business support, including grants worth up to £3,000 for closed businesses, and up to £2,100 per month for impacted businesses once they reopen. The government has also provided 100% business rates relief for retail, hospitality and leisure businesses, and as we have previously mentioned the furlough scheme is now extended to April and 100% government backed loans, extended until March.

Further funds are also being made available for Local Authorities and the Devolved Administrations to support other businesses not eligible for the grants, that might be affected by the restrictions. If this relates to our clients, you are advised to apply directly to your local Authority.

Further information

The one-off top-ups 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
  • 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: 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.

We understand that this is a challenging time for businesses, and if you have further questions please do not hesitate to contact us. For now, this is all the information we have, however, when we have updates which we feel will benefit clients we will be in touch. In the meantime, if you need further guidance, please follow the link here to the gov.uk website, which highlights all of the business support available during this time.

Regards, Paul and the team.

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