New lockdown grants announced by Chancellor

The Chancellor yesterday announced new lockdown grants worth £4.6 billion, following confirmation of a third national lockdown in England.

Expected to endure until at least mid-February, the grants are intended to support the most severely impacted businesses and sectors.

Grants for retail, hospitality and leisure businesses

Businesses in retail, hospitality and leisure can access one-off top up grants, to aid them in the coming weeks.

Potentially worth up to £9,000, the grant will be based on the rateable value of the closed business premises:

  • £4,000 for businesses with a rateable value of £15,000 or under
  • £6,000 for businesses with a rateable value of £15,000-£51,000
  • £9,000 for businesses with a rateable value of £51,000+

The Chancellor said of the latest cash boost: “This will help businesses to get through the months ahead – and crucially it will help sustain jobs, so workers can be ready to return when they are able to reopen.”

Local Authority funding

A further £594 million is being made available via Local Authorities, to businesses not eligible for industry-specific grants but impacted nonetheless. Businesses must apply to their own Local Authority for this funding.

Impacted, but ineligible?

Still, there are impacted businesses who will be unfortunately excluded from accessing the latest lockdown grants; for example, those in retail, hospitality and leisure without a business property and the supply chains of those businesses.

We would advise these businesses to:

  1. Consider other COVID-19 support measures that are available and identify whether your business can be aided by any of these. If you are unsure about your eligibility for financial support, our advisers can look at your circumstances and determine what, if anything, you may be able to secure.
  2. Consider whether there are ways in which you could better manage your cash flow, in the coming weeks and beyond. It is a message we repeat often, but many business owners misunderstand the considerable difference that improved management can make to their financial outlook.

Lobbying continues, to encourage the Government to offer more adequate support to all who have been impacted by Coronavirus, including those who so far have been unable to access financial aid.

We will continue to monitor any further developments with interest.

You can find more information about COVID-19 support measures, and signposts to our Local Authorities by visiting our Coronavirus Hub. To speak to one of our professionals about your circumstances or concerns, given the latest announcement, contact us today.

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