New Local Lockdown Grants
As part of their continued business support during the covid crisis, the government announced yesterday that they will provide a safety net for businesses in England that are required to close due to local lockdowns or targeted restrictions. Businesses that are forced to close will now be able to receive grants worth up to £1,500 every three weeks.
The payments will be made when there is a national decision to close businesses in a high incidence area. Each payment will be made for a 3 week lockdown period. Each new 3 week lockdown period triggers an additional payment.
As of 9 September 2020, these payments are available in Blackburn with Darwen, Pendle, and Oldham as part of an ongoing trial scheme.
The amount a business receives will be determined on the following basis:
- if a business occupies a premises with a rateable value less than £51,000 or occupies a property or part of a property subject to an annual rent or mortgage payment of less than £51,000, it will receive £1000
- if a business occupies a premises with a rateable value of exactly £51,000 or above or occupies a property or part of a property subject to an annual rent or mortgage payment of exactly £51,000 or above, it will receive £1500
For those that do not occupy a premises with a rateable value or rent then do not worry, local authorities will also receive an additional 5% top up amount of business support funding to enable them to help other businesses affected by closures which may not be on the business rates list. Payments made to businesses from this discretionary fund can be any amount up to £1500 and may be less than £1000 in some cases.
Local authorities will be responsible for distributing the grants to businesses in circumstances where they are closed due to local interventions. Further eligibility criteria may be determined by Local authorities.
Any businesses still closed at a national level (e.g. nightclubs), will not be eligible.
As with Covid business grants, local grants to closed businesses will be treated as taxable income.
Author: Susie Campion FCCA
Educated at Lancaster Girls' Grammar School, Susie joined Scott & Wilkinson in 1995 and qualifed as an accountant in 2002. As a Partner, Susie’s specialisms include managing the firm's large group audits and leading on staff...
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