This scheme was initially introduced to support local businesses during the 5 November to 2 December 2020 national lockdown and during periods of local restrictions.
With another national lockdown from 5 January 2021, a new lockdown grant to support businesses has been announced.
Lockdown grant for businesses from 5 January 2021 (to 16 February 2021?)
From the morning of Tuesday 5 January 2020, the Prime Minister announced that the whole of England will be placed into a full stay-at-home lockdown. Affected business will be closed until at least February half-term in order to help control the virus. The lockdown rules in England are due to be reviewed on 15 February 2020.
Businesses in the retail, hospitality and leisure sectors will be eligible for a one-off grant worth up to £9,000. This is to help ‘non-essential’ businesses forced to close again to keep afloat until spring. The grants will be worth up to £9,000 per property. This money will be made available by local authorities.
Eligible businesses can get one grant for each non-domestic property within the restriction area.
The one-off grants will be available to businesses forced to close from 5 January 2021 and will be 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
The above grants are based on an initial 6-week business closure forecast. Grants are actually payable for each 14 day period a business property is closed. The above 14 day period grants, express another way, are payable as follows:
£667 for each 14 day period a business property is closed with a rateable value of £15,000 or under. £667 x 6 weeks = £4,000.
£1,000 for each 14 day period a business property is closed with a rateable value between £15,000 and £51,000. £1,000 x 6 weeks = £6,000.
£1,500 for each 14 day period a business property is closed with a rateable value of over £51,000. £1,500 x 6 weeks = £6,000.
The grant scheme will be extended to cover each additional 14-day period of closure. If a business property is closed for 28 days, or 2 payment cycles, it will receive £1,334, £2,000 or £3,000, depending on the rateable value of the property.
Many businesses, already deemed as ‘non-essential’, were already closed as they were in Tier 3 or 4 areas.
The Government has also made £594 million of discretionary funds available to support other impacted businesses.
It is likely that these new lockdown grants will need to be made to local councils, as they deal with this type of support and this was the case with similar grants made available for November 2020. Businesses should therefore check with their local authority over the next few days as more information becomes available.
The above support is in addition to business rates relief and the furlough scheme which now runs to 30 April 2020.
Businesses such as cafes, restaurants, leisure centres and shops that do not sell essentials have been particularly hard hit by coronavirus lockdown measures. Pubs and restaurants are allowed to stay open to offer takeaway food only.
Visit your local council’s website to find out how to apply
Lockdown grant for businesses from 5 November 2020 to 2 December 2020
The government will also give affected businesses up to £3,000 pm under the Local Restrictions Support Grant if their premises are forced to close.
Where a business in England is required by law to close it will be eligible for a grant based on the rateable value of its business premises.
The grant is payable to an eligible business for every complete three weeks period:
Rateable value up to £51,000 - £1,000
Rateable value over £51,000 - £1,500
The grant will be extended to cover each additional 3-week period, so if the business is closed for 6 weeks it will receive £2,000 or £3,000, depending on the rateable value of the property.
Eligibility
A business may be eligible if it:
occupies property on which it pays business rates
is in a local lockdown area and has been required to close because of the formal publication of local restrictions guidance that resulted in a first full day of closure on or after 9 September. This funding is not retrospective
has been required to close for at least 3 weeks because of the lockdown
has been unable to provide its usual in-person customer service from its premises
This could include non-essential retail, personal services or cafes/restaurants that operate primarily as an in-person venue, but which have been forced to close those services and provide a takeaway-only service instead.
Eligible businesses will get one grant for each property liable for business rates within the lockdown zone.
Exclusions
This includes a:
business which is able to continue to operate during the lockdown because it does not depend on providing direct in-person services from its premises
business that has chosen to close, but has not been required to close as part of a local lockdown
business that is still subject to national closures e.g. nightclubs
How to apply
Visit your local council’s website to find out how to apply.