£240m to help small firms weather lockdown

THE South West is being given £240million to help small businesses through England’s national lockdown.

Companies that have been told to close or have been “severely impacted”, such as hospitality venues and non-essential retailers, will be able to access grants of up to £3,000 for the four-week period, the Department for Business, Energy and Industrial Strategy (BEIS) said.

Alongside that, the BEIS said there was also another discretionary scheme - the Additional Restrictions Grant - to help struggling companies support people’s jobs.

The money allocated to local authorities across the region has been calculated in proportion to local population size and estimates of the numbers of businesses required to close, according to BEIS.

Business Secretary Alok Sharma said: “We know that this is a really tough time for businesses across the country, which is why we are continuing to deliver a wide-ranging package of urgent support.

“This much-needed cash will help to sustain businesses, protect jobs and keep communities ticking as we continue to tackle the virus in the coming weeks.”

The funding available includes:

Local Restrictions Support Grants

The Local Restrictions Support Grants, for businesses which have had to close or have been severely impacted by local restrictions (hospitality, leisure and non-essential retail sectors).

Business owners will receive £1,334 per four weeks if they have a rateable value below £15,000.

They will receive £2,000 per four weeks if they have a rateable value between £15,000 and £51,000.

They will receive £3,000 per four weeks if they have a rateable value above £51,000.

Additional Restrictions Grants

The Additional Restrictions

Grant is provided by councils on a discretionary basis.

Local Authorities will receive a sum of money equivalent to £20 per head of their local population to distribute to businesses which have been severely impacted by restrictions.

For example, a council covering an area with a population of 100,000 would receive £2million for this purpose.

Those likely to be in receipt of these grants include large employers with significant fixed costs such as seaside attractions or local manufacturers, as well as sole traders, tour operators and market traders which do not have a rateable value.

This includes businesses like pubs not serving substantial meals, betting shops, arcades and soft play centres.

The BEIS is urging businesses to contact their local authority and make sure that council officials have contact and payment information for them.

Small Business Minister Paul Scully added: “We have stood by small businesses in the South West and across the country throughout this unprecedented period of uncertainty and difficulty.

“Times are still hard, which is why we are providing this emergency additional cash to help businesses cover their fixed costs and come back from the coronavirus pandemic fighting.”