Small firms have just two weeks to claim £1.5bn

SMALL businesses are missing out on millions of pounds of unclaimed grants from local authorities, according to the British Independent Retailers Association (Bira).

Firms were able to claim emergency funding from their local councils to cover disruption caused by the coronavirus pandemic.

According to official data, £1.5 billion of the £12billion allocated for this purpose is still sitting in local authority bank accounts. If it is not claimed by the end of the month it will be returned to the Treasury.

Andrew Goodacre, Bira’s chief executive, said: ‘We’ve been made aware that some local authorities are holding on to millions of pounds of unallocated grant money.

‘This money has been made available to support affected business. Those that, for whatever reason, haven’t yet claimed should step forward or risk losing out.’

Some businesses might not be aware that they are eligible for this support, he added, or they might not have been contacted by their local council, who could be in possession of outdated information.

Goodacre suggested that rather than have councils return any surplus funding, the money should be directed towards businesses still in need of support. He said: ‘Having allocated the money to support businesses, it makes sense to allow local authorities to further support independent retailers who continue to experience severe problems in the current crisis.

‘The money has been allocated once and should be used, rather than returned to the Treasury.’ The Government said it was working with local councils to make sure that funding reaches all those entitled to it.

Support packages include £10,000 from the Small Business Grant Fund, £15,000 or £10,000 under the Retail, Hospitality and Leisure Grant Fund, and £25,000, £10,000 or less via the Local Authority Discretionary Grants Fund.