Businesses in the retail, hospitality and leisure sectors will receive a one-off grant worth up to £9,000 the Chancellor has confirmed. The one-off top-up grants are worth up to £9,000 per property and aim to help businesses through to the Spring
The news follows the Prime Minister’s announcement this week that these businesses will be closed until at least February half-term to help control the virus.
The one-off top-ups will be available 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; and £9,000 for businesses with a rateable value of over £51,000.
Any business which is legally required to close and cannot operate effectively remotely is eligible for a grant.
The cash will be available on a per-property basis to support businesses through the latest restrictions. It is expected to benefit over 600,000 business properties, worth £4 billion in total across all nations of the UK.
The new one-off grants come in addition to existing business support. These include grants worth up to £3,000 for closed businesses. Plus, 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 will now extend to April, and 100% government-backed loans are being extended until March.
However, with no confirmed date for reopening, Bira fears the funding will not be enough to keep retailers afloat.
Commenting is Andrew Goodacre, Bira’s CEO. “The extra support cannot come soon enough. And while we certainly welcome the extra money being provided to closed businesses, on top of the existing grants, the problem is that we have no end date to this lockdown.
“Our fear is that this will not be enough to help businesses survive and protect those all-important jobs. The Government needs to keep an open mind and be prepared to offer more support if this lockdown looks like being longer than they envisage at the moment.
“We would also like to see the interest-free period for loans extended and the issue of longer-term business rates relief addressed so that businesses can plan ahead.”
