Kwarteng wants quicker delivery of Covid grants

KWASI KWARTENG ordered councils to hurry up and distribute £253m of emergency Covid grants as the high street suffered its worst ever drop in festive sales.

The Business Secretary issued a call to arms after local authorities were criticised for the “glacial” rollout of Covid aid.

He has written dozen worst-offending council leaders to admonish them for their slow progress and warned that “jobs, livelihoods and communities” depend on the cash.

It came as official data showed that retailers suffered a record Christmas sales slump during the omicron surge. Retail sales plunged 3.7pc month-onmonth in the worst December decline ever.

In a letter to councils, Mr Kwarteng says: “Businesses need you and your staff to help them through this period. The funding we have allocated needs to get to businesses to protect jobs, livelihoods and communities. The sooner applications are processed and funds are distributed, the sooner we will be able to provide businesses with the confidence and security they need.”

By the end of November, councils had received more than £2bn for additional restrictions support grants – mostly allocated by July – but were still sitting on £253m of it, indicating delays in reaching businesses in need.

Omicron grants totalling £635m are available as part of the new scheme for hospitality, leisure and accommodation businesses across England, with £100m for companies that fall between the cracks of the support schemes, and equivalent cash for distribution by the devolved administrations.

Mike Cherry, national chairman of the Federation of Small Businesses, welcomed the call as firms suffered a tough Christmas.