Local Authority Grant Funding

Last updated Monday 8 March 2021 - 10:04

Restart Grants

In his budget speech on 3rd March 2021, the Chancellor announced that a Restart Grant would be provided in April 2021.

  • Non-essential retail businesses will receive grants of up to £6,000 per premises.
  • Hospitality and leisure businesses, including personal care and gyms, will receive up to £18,000 per premises.

Lockdown Grants

Following the introduction of a new national lockdown from 5th January 2021, the Chancellor has announced that businesses in the retail, hospitality and leisure sectors are to receive an additional one-off grant.

The one-off ‘top-ups’ will be granted to closed businesses as follows:

  • £4,000 for businesses with a rateable value of £15,000 or under
  • £6,000 for businesses with a rateable value between £15,000 and £51,000
  • £9,000 for businesses with a rateable value of over £51,000

A further £594 million is also being made available for Local Authorities and the Devolved Administrations to support other businesses not eligible for the grants, that might be affected by the restrictions. Businesses should apply to their Local Authorities.

Businesses required to close

As announced on 31 October 2020, businesses required to close in England due to local or national restrictions will be eligible for the following:

  • For properties with a rateable value of £15,000 or under, grants to be £1,334 per month, or £667 per two weeks;
  • For properties with a rateable value of between £15,000-£51,000 grants to be £2,000 per month, or £1,000 per two weeks;
  • For properties with a rateable value of £51,000 or over grants to be £3,000 per month, or £1,500 per two weeks.

Small Business Grant Fund and Retail, Hospitality and Leisure Grant Fund

Local authorities will contact eligible businesses to arrange payment of the grants.
Find your local authority.

  • Under the Small Business Grant Fund (SBGF) all eligible businesses in England in
    receipt of either Small Business Rates Relief (SBRR) or Rural Rates Relief (RRR) in the
    business rates system will be eligible for a payment of £10,000.
  • Under the Retail, Hospitality and Leisure Grant (RHLG) eligible businesses in England
    in receipt of the Expanded Retail Discount (which covers retail, hospitality and leisure)
    with a rateable value of less than £51,000 will be eligible for a cash grants of £10,000 or
    £25,000 per property.
  • Eligible businesses in these sectors with a property that has a rateable value of up to and including £15,000 will receive a grant of £10,000.
  • Eligible businesses in these sectors with a property that has a rateable value of over £15,000 and less than £51,000 will receive a grant of £25,000.

Businesses with a rateable value of £51,000 or over are not eligible for this scheme.

Properties that will benefit from the relief will be those that are wholly or mainly being used:

  • as shops, restaurants, cafes, drinking establishments, cinemas and live music venues
  • for assembly and leisure
  • as hotels, guest and boarding premises and self-catering accommodation

Grant income received by a business is taxable therefore the Small Business Grants, and Retail, Hospitality and Leisure Grants will be subject to tax.

Discretionary Grants Fund

Additional funds will be made available to local authorities.

These additional funds are aimed at small businesses with ongoing fixed property-related costs.

The Government are asking local authorities to prioritise businesses in shared spaces, regular market traders, small charity properties that would meet the criteria for Small Business Rates Relief, and bed and breakfasts that pay council tax rather than business rates. But local authorities may choose to make payments to other businesses based on local economic need. The allocation of funding will be at the discretion of local authorities.

Businesses must be small, under 50 employees, and they must also be able to demonstrate that they have seen a significant drop of income due to Coronavirus restriction measures.

There will be three levels of grant payments. The maximum will be £25,000. There will also be grants of £10,000 and local authorities will have discretion to make payments of any amount under £10,000. It will be for councils to adapt this approach to local circumstances.

Further guidance for local authorities will be set out shortly.