The Government has imposed a third national lockdown in England, which is a severe hit for many businesses in what has proved to be an extremely difficult period. Under the restrictions outlined at Prime Minister Boris Johnson’s announcement all non-essential retail, hospitality and personal care services must close—or remain closed—until at least the middle of February 2021.
However, to assist businesses in the months ahead, Chancellor Rishi Sunak has unveiled a £4.6 billion aid package to help UK businesses survive the latest lockdown. Chancellor Sunak quoted that this financial support is hoped to “… 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.”
As part of this financial aid package, Chancellor Sunak has implemented a one-off top up grant for retail, hospitality and leisure sector businesses. The grants are worth up to £9,000 per property (dependent on corresponding rateable value) to help businesses sustain themselves until spring.
The one-off top ups will be granted to closed businesses based on rateable values. The brackets are as follows:
- There is £4,000 available for businesses with a rateable value of £15,000 or under;
- £6,000 for businesses with a rateable value of between £15,000 and £51,000;
- and £9,000 for businesses with a rateable value of over £51,000.
Alongside these grants for the retail, hospitality and leisure sector businesses, there is an additional £594 million discretionary fund available to support other negatively affected businesses. This support comes in addition to £1.1 billion of further discretionary grant funding for Local Authorities, enabling them to offer financial aid packages on a local level, such as the Local Restrictions Support Grants (LRSG) worth up to £3,000 per month.
Thankfully, the extension of the furlough scheme will also serve to support businesses and the employees that relay on their income.
More details will be available as to when the grants will be processed. In the meantime, please feel free to ask a member of the WHA team if you have any questions.