Grant Applications Now Open for Omicron Affected Businesses

Date: 25/01/22

Grant Applications Now Open for Omicron Affected Businesses

As announced by The Chancellor, Rishi Sunak, in December 2021 funding for the two ‘Omicron grants’ has now been issued to local councils to distribute to eligible businesses. The two grants available are the Omicron Hospitality and Leisure Grant (OHLG) and the Additional Restrictions Grant (Omicron) scheme.

 

Due to these grants being administered by your local council you should seek further guidance from their website for details on how to apply. The below guidance is based on Lancaster City Councils (LCC) website. For other local councils we provide links to their websites further below.

 

Please note that Lancaster City Council have set a closing date for applications to both grants of 14 February 2022, so if you are eligible don’t delay applying.

 

Omicron Hospitality and Leisure Grant (OHLG)

This scheme provides support to hospitality, leisure and accommodation businesses, in recognition that the rise of the Omicron variant will have caused some businesses to struggle.

 

Eligibility

In order to qualify you must have been the ratepayer on 30 December 2021. Businesses must have been trading on 30 December 2021 to be eligible to receive funding under this scheme.

The primary principle of the Omicron Hospitality and Leisure Grant scheme is to support businesses that offer in-person services, where the main service and activity takes place in a fixed rate-paying premises, in the hospitality, leisure and accommodation sectors.

Businesses will only be eligible where their main service falls within hospitality, leisure or accommodation. If a business operates services that could be considered hospitality or leisure, and also fall into another category, the main service will be determined by assessing which category constitutes 50% or more of their overall income. The main service principle will determine whether a business receives funding.

 

Payment amount

  • Businesses occupying premises with a rateable value of exactly £15,000 or under on 30 December 2021 will receive a payment of £2,667
  • Businesses occupying premises with a rateable value over £15,000 and less than £51,000 on 30 December 2021 will receive a payment of £4,000
  • Businesses occupying premises with a rateable value of exactly £51,000 or over on 30 December 2021 will receive a payment of £6,000

 

Definitions of ‘Hospitality’ ‘Leisure’ and ‘Accommodation’ for the purposes of this grant

  • For the purposes of this scheme, a hospitality business can be defined as a business whose main function is to provide a venue for the consumption and sale of food and/or drink.
  • For the purposes of this scheme, a leisure business can be defined as a business that provides opportunities, experiences and facilities, in particular for culture, recreation, entertainment, celebratory events and days and nights out.
  • For the purposes of this scheme, an accommodation business can be defined as a business whose main lodging provision is used for holiday, travel or other purposes.

 

For LCC’s full guidance and to Apply for an Omicron, Hospitality and Leisure Grant from Lancaster City Council follow this link.

 

The Additional Restrictions Grant Omicron (ARG Omicron)

This is a discretionary grant for businesses both with and without a rateable value who have been severely financially impacted by the Omicron variant of Covid-19, and who are not eligible for the government Omicron Hospitality and Leisure Grant (see above).

Business owners who have more than one business may make an application for each business that has been impacted.

This grant is available to businesses who have received earlier grant support, as well as new applicants. Businesses who have previously received Local or Additional Restrictions Grants will need to submit a new application, and evidence provided in connection with a previous application cannot be considered for this grant

Businesses in receipt of the Winter Grant and/or Business Protection grant can also apply for the ARG (Omicron).

 

Eligibility

Your business may be eligible if it:

  • is not eligible for the Omicron Hospitality and Leisure Grant
  • has been severely financially impacted specifically by the Omicron variant.
  • can demonstrate and evidence that it was open for business on or before 21 December 2021
  • has a rateable value (businesses that are in receipt of Small Business Rates Relief do have a rateable value) Or:
  • does not have a rateable value but can demonstrate annual fixed, ongoing business-related costs of over £1,000 that have not reduced due to the restrictions imposed or any additional Covid impacts.
  • is a medium, small or micro business according to the Companies Act of 2006*
  • has a Covid Safety Risk Assessment in place. (N.B. If you are a very small business you may not need to produce a written risk assessment, but you will need to have Covid safety measures in place. See further guidance from GOV.UK)
  • is a fully constituted business not in liquidation, dissolved or subject to a striking off notice.
  • operates in one of the sectors below:
    • Travel / Tour Operators
    • Tourism
    • Accommodation including self-catering
    • Leisure including nightclubs, gyms
    • Culture & Events
    • Wedding industries
    • Personal Services e.g. health & beauty
    • Kennels & Catteries
    • Supply chains to the hospitality, accommodation, leisure and retail sectors

Examples of fixed business-related costs include rent paid by the business, business mortgage, business insurance, utilities, business phone contract, ongoing maintenance contracts, franchise payments, business vehicle costs, professional body memberships, subscription licences (including ICT software), equipment maintenance, business loan repayments, employer national insurance and pension contribution costs.

N.B. Domestic payments (e.g. mortgage, utilities, insurance, phone charges) where the home-based business pays a share of a domestic bill are not allowed.

 

Payment amount

  1. Businesses with a rateable value

  • Businesses with a Rateable value of exactly £15,000 or under will receive a one-off lump sum payment of £1,000
  • Businesses with a Rateable value between £15,000 to £50,999 will receive a one-off lump sum payment of £1,500
  • Businesses with a Rateable value of £51,000 + will receive a one-off lump sum payment of £2,500

  1. Businesses without a rateable value

  • Businesses with Fixed business costs (per annum) of between £1,000 - £3,000 will receive a one-off lump sum payment of £250
  • Businesses with Fixed business costs (per annum) of between £3,001 - £6,000 will receive a one-off lump sum payment of £500
  • Businesses with Fixed business costs (per annum) of between £6,001 - £15,000 will receive a one-off lump sum payment of £1,000
  • Businesses with Fixed business costs (per annum) of between £15,001 - £30,000 will receive a one-off lump sum payment of £1,500
  • Businesses with Fixed business costs (per annum) of between £30,001 - £50,999 will receive a one-off lump sum payment of £1,750
  • Businesses with Fixed business costs (per annum) of £51,000 + will receive a one-off lump sum payment of £2,500

 

For LCC’s full guidance and to Apply for an Additional Restrictions Grant (Omicron) from Lancaster City Council follow this link.

 

Other Local Councils

South Lakeland District Council

Craven District Council

Wyre Council

Fylde Council

Blackpool Council


James Cornthwaite FCA CTA

Author: James Cornthwaite FCA CTA

A former pupil at St Aidan’s C of E High School, James attended Blackpool Sixth Form College and Lancaster University, graduating in 2004, gaining BSc. first class honours. He joined Moore and Smalley, Preston in 2005 and qualified as a...

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