New grants offered to small firms in England hamstrung by local lockdowns

The scheme, designed to offer an additional safety net to local retailers and protect jobs wherever possible, is available on a per-property basis. Businesses with multiple properties in an area affected by a local lockdown or targeted restrictions will be able to claim up to £1,500 per property. 

Any retailer occupying premises with a rateable value of £51,000 or greater, or a property subject to an annual rent or mortgage of £51,000 or greater, will receive the full £1,500 grant. 

Cash grants worth £1,000 will also be made available to smaller businesses occupying premises with rateable values, annual rent or mortgages of less than £51,000. 

The grants will be administered by local councils, with details of how to apply still to be announced. 

In addition, local authorities are to receive a further 5% top-up in their business support funds. This can be used to provide discretionary aid to other small firms affected by closures that the business rates list does not relate to. 

Any type of business operation still legally prohibited from opening at a national level, such as nightclubs, will not be eligible for the new cash grants during the coronavirus pandemic. 

Mike Cherry, National Chairman of the Federation of Small Businesses (FSB), labelled the grants as “critical” for local businesses and welcomed them bringing a “much needed additional financial lifeline to those most harmed”. 

“We look forward to working together with local government to make sure there is a straightforward [application] process for all firms affected,” added Cherry. 

Business Secretary, Alok Sharma, said that the grants were necessary because “no business should be punished for doing the right thing”. 

“Through our wider Plan for Jobs, we will continue to back our innovators and job creators across the country who are playing a critical role as we build back better from the pandemic,” added Mr Sharma. 

Last updated: 7th October 2020