Business support grants

Updated Tuesday 17 November 2020

Grant scheme for ratepayers mandated to close

The Government has announced that business rate payers forced to close due to national restrictions between 5 November to 2 December are to receive grants worth up to £3,000 for each four-week period.

  • For properties with a rateable value of £15K or under, grants to be £1,334 per four weeks during national restrictions, or £667 per two weeks;
  • For properties with a rateable value of between £15K - £51K, grants to be £2,000 per four weeks during national restrictions, or £1,000 per two weeks;
  • For properties with a rateable value of £51K or over, grants to be £3,000 per four weeks during national restrictions, or £1,500 per two weeks.

Apply for national restrictions grant online.

Eligible businesses

  • Rate payers trading on 4 November offering direct, in-person services but were then mandated to close by Government on 5 November. This could include, for example, non-essential retail, personal services or cafes/restaurants that operate primarily as an in-person venue but have been forced to close these services and instead provide takeaway-only or delivery services.
  • If a business rate payer is forced to close the part of its business that provides its main service then they will be eligible for a grant.
  • Gyms and leisure centres providing for disabled sport will receive grants whether they remain open or choose to close.

Guidance published on www.gov.uk/guidance/new-national-restrictions-from-5-november#businesses-and-venues clearly sets out which businesses and venues have been required by law to close.

Ineligible businesses

  • Ratepayers that are able to continue to trade because they do not depend on providing direct in-person services from premises and can operate their services effectively remotely (e.g. accountants, solicitors) are not eligible.
  • Businesses that were in administration,  insolvent or where a striking-off notice has been made on or after 4 November are not eligible for funding under this scheme.

Taxable income

Grant income received by a business is taxable, therefore the National Lockdown grant will be subject to tax. Only businesses that make an overall profit once grant income is included will be subject to tax.

State Aid

State aid applies  and all recipients are required to comply with the maximum permitted funding under the relevant State aid rules – EUR 200,000 over three years under the De Minimis Regulation, and EUR 800,000 under the COVID-19 Temporary Framework for UK Authorities.

Appeals

There is no appeals procedure under this scheme.

Discretionary grant scheme: Tier 2

Business rate payers in hospitality, accommodation, cinema, entertainment venues and tourist attraction sectors that have been suffering from reduced demand due to Tier 2 local restrictions introduced in Elmbridge from 17 October  can apply for backdated grants at 70% of the value of closed grants pro-rata for the period to 5 November (in Elmbridge this will be for 19 days).

  • For properties with an RV of £15k or under, grants of £934 per four weeks
  • For properties with an RV of between £15k-£51k, grants of £1,400 per four weeks
  • For properties with an RV of exactly £51k and over, grants of £2,100 per four weeks

The national and local restrictions application form also includes the tier 2 grant details. One form only needs to be completed when applying for national restrictions and tier 2 grant online

Find further information on the Council's local restrictions support grant (open) policy.


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