Lockdown Grants Update

15th January 2021

The government has now published the guidance for Local Authorities on administering the Support Grants for closed businesses, and the top up cash grants for retail, leisure and hospitality businesses.  CLICK HERE to read the full guidance.

 

Some key points that might be helpful for you are:

Support grants for Closed businesses

• The payment amount for the Support Grants for closed businesses will cover 42 days (6 weeks) from 5 January 2021, rather than the 14-day payment cycle for tiered restrictions
• The payment cycle will then be reviewed after 42 days have elapsed.
• Businesses that are eligible are those that have been mandated to close by Government and include non-essential retail, leisure, personal care, sports facilities and hospitality businesses.
• The amount of grants for the 42 day period will be as follows:-
  • Businesses with a rateable value of exactly £15,000 or under – £2,001
  • Businesses with a rateable value over £15,000 and less than £51,000 – £3,000
  • Businesses with a rateable value of exactly £51,000 or above – £4,500

 

Lockdown grants (top up cash grants for retail, leisure and hospitality)

• The Lockdown Payment will be in addition to the Support Grants for Closed Businesses
• Local Authorities will be provided with funding to deliver a one-off payment for businesses that have been required to close from 5 January 2021 due to the introduction of national restrictions. This funding is not retrospective (for before 5 January).
• Businesses that are eligible are those within designated retail, hospitality and leisure sectors that have been mandated to close by Government.
• The following amounts will be paid to eligible (closed) businesses:
  • Businesses with a rateable value of exactly £15,000 or under – £4,000.
  • Businesses with a rateable value over £15,000 and less than £51,000 – £6,000
  • Businesses with a rateable value of exactly £51,000 or above – £9,000.

 

It is important to note that the above grants relate to businesses which have been required to close under the National Lockdown restrictions, not businesses which have taken the decision to close due to the impact of the restrictions.  Businesses that operate primarily as an in-person venue, but which have been forced to close those services and provide a takeaway, click and collect or delivery service instead will still be eligible.

 

If your business has not been required to close as a result of the National Lockdown restrictions, e.g. you are classed as essential retail or a service, but you have been impacted by the restrictions and the pandemic, OR if you have been required to close but you do not have a business rates account, you may instead be eligible for a discretionary grant – further details are available HERE.

 

Lancaster City Council has informed us they are currently assessing the guidance with a view to launching the grants very soon. The application process will be kept as straightforward as possible with the potential that businesses which have already made successful claims may receive automatic payments without a further application.

 

Lancaster BID will keep you fully updated as soon as further details of how the grants will be administered locally is confirmed.