Local Restrictions Grant Funding (05-01-2021)
An additional £594m discretionary fund will be made available through local authorities and devolved administrations to support businesses affected by the restrictions.
This funding comes in addition to the £1.1bn Local Restriction Support Grants for closed businesses worth up to £3,000 a month.
Further guidance on the Local Restrictions Support Grant (for closed businesses) is available here.
These grants will be administered through your local authority so you should visit their coronavirus support pages for further details on how to apply.
Hull City Council Announcement
Hull City Council have announced that they will distribute thousands of pounds in extra grant provision for pubs, cafes and restaurants after the announcement that the city will remain under Tier 3 Covid-19 restrictions.
They have warned that they have limited funds to distribute to support businesses but they have committed to an additional £3,000 from Government funded Additional Restrictions Grant.
This will be an additional grant on top of the £1,000 already announced by the Government for ‘wet pubs’.
Businesses required to remain closed under the Tier 3 restrictions, and some leisure businesses which can re-open will also receive further payments under the Local Restriction Support Scheme.
You do not need to re-apply if you have already claimed a payment for the lockdown period from 5 November to 2 December 2020. All existing claims will be reassessed to determine eligibility for a Tier 3 payment.
The council is aiming to complete this process before Christmas.
Local Restrictions Grant Funding (19-11-2020)
Government has launched the Local Restriction Support Grant (LRSG) and the Additional Restrictions Grant (ARG). These grants are to support businesses that have been required to close and are registered for business rates.
Local Restriction Support Grant (Closed Businesses) LRSG
Businesses that were open as usual and were then required to close due to local restrictions (local COVID alert level: Very High) may be eligible for LRSG (Closed).
Who can get this grant?
The following businesses who are liable to pay business rates are able to apply:
- Non-essential retail, such as clothing and homeware stores, vehicle showrooms (other than for rental), betting shops, tailors, tobacco and vape shops, electronic goods and mobile phone shops, and market stalls selling non-essential goods. These venues can continue to be able to operate click-and-collect (where goods are pre-ordered and collected off the premises) and delivery services
- Hospitality venues, such as cafes, restaurants, pubs, bars and social clubs
- Leisure and sports facilities, such as leisure centres and gyms, swimming pools, tennis and basketball courts, golf courses, fitness and dance studios, climbing walls, archery, driving, and shooting ranges
- Accommodation, such as hotels, hostels, guest houses and campsites
- Entertainment venues, such as theatres, concert halls, cinemas, museums and galleries, casinos, amusement arcades, bingo halls, bowling alleys, skating rinks, go-karting venues, soft play centres and areas, circuses, funfairs, zoos and other animal attractions, water parks, theme parks
- Personal care facilities, such as hair, beauty, tanning and nail salons, tattoo parlours, spas, massage parlours, body and skin piercing services
- Community centres and halls.
What exclusions are there for this grant?
There are a number of exclusions in relation to this grant, where you would not be eligible for a grant payment:
- Businesses that are able to continue to trade because they do not depend on providing direct in-person services from premises and can operate their services effectively remotely (e.g. accountants, solicitors)
- Businesses subject to local restrictions that are implemented for less than 14 days and businesses that are closed for less than 14 days
- Businesses in areas outside the scope of the localised restrictions, as defined by Government, are also excluded
- Businesses that have chosen to close but not been required to
- Businesses which have already received grant payments that equal the maximum levels of State aid permitted under the de minimis and the COVID-19 Temporary State Aid Framework
- For the avoidance of doubt, businesses that were in administration, are insolvent or where a striking-off notice has been made
- Specific businesses subject to national closures since 23 March 2020. They will be provided support through the strand of the LRSG (Sector) for nationally mandated business closures
In the event of renewed widespread national ‘lockdown’ restrictions being imposed from 5th November, the Local Restrictions Support Grant (Closed) will cease to apply, as relevant businesses will receive funding from the LRSG (Closed) Addendum.
Local Restriction Support Grant (Closed Businesses) Addendum LRSG
The Local Restrictions Support Grant (LRSG (Closed) Addendum) supports businesses that have been required to close due to the national restrictions between 5 November and 2 December 2020.
Who can get this grant?
- Businesses occupying a property on which it pays business rates (and is the ratepayer)
- The business has been required to close because of the national restrictions from 5 November to 2 December 2020
- The business has been unable to provide its usual in-person customer service from its premises
For example, this could include non-essential retail, leisure, personal care, sports facilities and hospitality businesses. It could also include businesses that operate primarily as an in-person venue, but which have been forced to close those services and provide a takeaway-only service instead.
Eligible businesses can get one grant for each non-domestic property.
Businesses excluded from the fund
What exclusions are there for this grant?
- If your business can continue to operate during the period of restrictions because you do not depend on providing direct in-person services from your premises (for example accountants)
- If you have chosen to close your business, but have not been required to close as part of national restrictions
- If your businesses has exceeded the permitted state aid limit
What grant is my business eligible for?
The grant will be based on the rateable value of the property on the first full day of restrictions and you should consult your local council to begin the application process (details below).
If your business has a property with a rateable value of £15,000 or less, you may be eligible for a cash grant of £1,334 for each 28-day qualifying restrictions period.
If your business has a property with a rateable value over £15,000 and less than £51,000, you may be eligible for a cash grant of £2,000 for each 28-day qualifying restrictions period.
If your business has a property with a rateable value of £51,000 or above, you may be eligible for a cash grant of £3,000 for each 28-day qualifying restrictions period.
Local Restrictions Support Grants (Open) Tier 2 and Tier 3
As businesses open again after the proposed lockdown end on 2 December 2020, Local Authorities have been provided with funding to support businesses which are open but severely impacted by Local COVID Alert Level ‘High’ and ‘Very high’. Grants are payable from the date your local authority enters into the Tier system and are awarded at the discretion of the local council.
For any local authority areas who entered into Tier 2 before the lockdown, local restriction grants (open businesses) will be available for that period up to and including 4 November 2020.
Please note: From 5 November 2020 when national restrictions were imposed, this scheme will cease to apply for those businesses that have had to close, eligible businesses should review their eligibility for the Local Restrictions Grant (Closed) Addendum scheme.
Additional Restrictions Grants (ARG) scheme
Local Authorities have been provided with funding to support businesses that have been severely affected by the lockdown restrictions, including those who are not on the business rates list.
The ARG will support businesses supplying or reliant on the leisure, hospitality, non-essential retail and events sector, including those that are directly linked to these sectors.
For further details of these schemes and how to apply for them, please visit your local authority coronavirus support pages. We have included links to some of our local authorities below for your reference.
Local Restrictions Support Grants
In addition to the JSS, government has also boosted cash grants to support businesses forced to close. The local restrictions support grants (LRSG) were announced in early September as part of the governments Winter Economy Plan. Initially the grants were designed to assist businesses forced to lockdown locally, however this has now been extended to businesses who have closed on a national level including nightclubs, bowling alleys, pubs and restaurants.
These grants, aimed to assist with fixed costs, will be linked to a business’s rateable value and will be up to a maximum of £3,000 per month, payable every two weeks
These grants will be available to those businesses who have been forced to close for at least three weeks due to local lockdown. Local authorities may, at their discretion, also provide this funding to businesses who ‘do not’ pay business rates.
To be eligible a business must:
- Occupy the property on which it pays the business rates
- Be in a local lockdown area and required to close because of formal publication of local restrictions that led to a first full day of close on or after 9 September 2020 (funding is not retrospective)
- Has been required to close for at least 3 weeks because of the lockdown
- Has been unable to provide its usual in-person customer service from its premises
This could include non-essential retail, personal services or cafes/restaurants that operate primarily as an in-person venue but which have been forced to close those services and provide a takeaway-only service instead.
Check for funding sources
The Local Authorities and Local Enterprise Partnerships have issued details of the local and regional support available. Please do keep an eye on these to ensure you are aware of other help available. We will continue to share this and update with you when we become aware of any changes.
To help you keep your business operating, we’ve made it easy to access the correct and most up-to-date information. Below, you’ll find information on government support for businesses and individuals and practical advice to help you to manage your business through this unusual period.