Some city firms fear closure over delays in £54m grant scheme

MORE than £30 million in business grants have been awarded in Coventry to aid firms through the coronavirus crisis - but some say long processing delays are putting them at risk of closure.

Eligible businesses in the retail, hospitality and leisure sectors can receive a cash grant of up to £25,000, while small businesses can pick up a £10,000 grant.

It’s part of a huge government financial package to help ease the pressure on businesses affected by the coronavirus, with Coventry City Council allocated a total of £53.9m from the government.

The city council, which administers the applications locally, said it has had more than 4,200 applications and paid out more than £30m.

But as of April 26, 2,092 SMES in Coventry were still waiting for the money to come through - to the tune of £24.5 million - according to figures from the Office for National Statistics, analysed by Reach PLC’S Data Unit.

Mike Cherry, national chair of the Federation of Small Businesses, has said it is “essential that councils get these funds issued as soon as possible and into the hands of small firms before it’s too late”.

“Every day that goes by for a small business without those cash grants is another day worrying about the future of their livelihoods,” he added.

Some business owners in Coventry even say they are waiting up to five weeks before their application is accepted.

Philippa Parlett, who owns Sacred Steel Tattoo in Earlsdon, said she feared her business could close due to delays accessing cash and has criticised the council for slow responses.

She told the Local Democracy Reporting Service: “Nobody I know has been receiving these grants.

“I own the business but my husband also works for me and we have been struggling to get universal credit so we have not had any income.

“We were relying on that grant but Coventry City Council seemed to be fobbing us off a little bit as I was rejected the first time despite being told I’m eligible and if I had not been on the phone to them every day I still wouldn’t have got it. They do not respond to emails and if you do ring them you are waiting for two hours. It just hasn’t been very good.”

The city council said acceptance of grants is usually between five to 10 days.

At its peak, the council received 2,489 applications in one week, but since then there has been “a gradual decline”, a spokesman said.

He said a team of 14 process applications “very quickly”, but added it “does differ on a case by case basis”.

Cabinet member for finance at the council Cllr John Mutton insisted cash is handed out “as quickly as possible”, adding the process has to be done right as incorrect payments come at a cost.

He said: “They [the government] have been clear in the small print that if we make any payments to companies that aren’t eligible then local taxpayers will have to pick up this cost.

“This is why we wanted to get the process right.”

Cllr Jim O’boyle, cabinet member for jobs and regeneration, said he believes the job has been “blindly” passed from government to councils.

He said: “Currently we, and therefore Coventry tax payers are responsible for any incorrect payments.

“With an allocation of over £53 million even a small error of 5% could see us needing to find £2.65 million.

“So far we have paid out to over 60% of eligible businesses and we urge others to contact us as soon as they can so we can get the cash to where it’s needed.” A spokesman from the Department for Business, Energy and Industrial Strategy said: “The government has announced a substantial package to support businesses of all sizes, including grants through local authorities, where so far over £7.5 billion has already been paid out to more than 614,000 business properties.

“This grant funding is being provided to businesses who are ratepayers. However, the government continually reviews its support for the economy and to businesses through the Covid-19 response.

“Businesses that are not eligible for local authority grant payments are able to benefit from the wide-ranging multi-billion pound package of support that the government has made available.”