New grants announced in light of 2021 lockdown

Speaking on January 5, 2021, Chancellor Rishi Sunak explained that the grant is to be provided on a per-property basis to support businesses through the latest restrictions, and is expected to benefit over 600,000 properties across all nations of the UK. ( Watch his speech here.)

This follows the Prime Minister’s announcement that these business will be closed until at least February half-term in order to help control the COVID-19 virus.

In addition:

• The furlough scheme is now extended to April
• 100% business rates relief for hospitality, leisure and retail businesses
• £1.1 billion existing discretionary funding for Local Authorities
• 100% government backed loans, extended until March.

Rishi Sunak said:

The new strain of the virus presents us all with a huge challenge - and whilst the vaccine is being rolled out, we have needed to tighten restrictions further.

Throughout the pandemic we’ve taken swift action to protect lives and livelihoods and today we’re announcing a further cash injection to support businesses and jobs until the Spring.

This will help businesses to get through the months ahead – and crucially it will help sustain jobs, so workers can be ready to return when they are able to reopen.

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.

The new one-off grants come in addition to billions of existing business support, including grants worth up to £3,000 for closed businesses, and up to £2,100 per month for impacted businesses once they reopen.

The government has also provided 100% business rates relief for retail, hospitality and leisure businesses, £1.1 billion existing discretionary funding for Local Authorities, the furlough scheme now extended to April and 100% government backed loans, extended until March.

Further information

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

Devolved administrations

• The Scottish Government will receive £375 million
• The Welsh Government will receive £227 million
• The Northern Ireland Executive will receive £127 million

This is designed to contribute to the funding which has already been guaranteed by the UK Government, and small businesses in the devolved administrations should also be able to benefit from other UK-wide measures in the government’s package of support for business, including the various business lending schemes.

Further details can be found at www.gov.uk