New lockdown support available
Jan 13, 2021
The Chancellor has announced that due to the UK’s third lockdown, businesses in the retail, hospitality and leisure sectors are to receive a one-off grant worth up to £9,000 per property as part of a new £4.6bn coronavirus support package. In addition, a £594 million discretionary fund has also made available to support other impacted businesses.
These one-off top up grants are aimed at helping help businesses to survive through to the spring. As a result of the new lockdown announced on 4 January 2021, hospitality, leisure and non-essential retail businesses all have to remain shut until February half term (w/c 15 February 2021) at the earliest.
The grants are based on the rateable value of the business property. Any business which is legally required to close, and which cannot operate effectively remotely, is eligible for a grant 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
- £9,000 for businesses with a rateable value of over £51,000
In addition to the one-off grants, the Chancellor announced that a further £594million discretionary fund is being made available. This cash will be distributed through local authorities and devolved administrations, and it is aimed at those businesses which are not eligible for the grants but which may still be affected by the restrictions. These businesses should apply directly to their relevant local authority.
Furlough and loan extension
The £4.6bn lockdown grant funding comes after Rishi Sunak’s announcement before Christmas that the Coronavirus Job Retention Scheme (CJRS) would be extended. It was due to end on 31 March 2021, but will now last until the end of April.
Meanwhile the government-backed business loan schemes have been extended until 31 March 2021. This includes the CBILS (Coronavirus Business Interruption Loan Scheme) and the BBLS (Bounce Back Loan Scheme).
SEISS – 3rd grant deadline
Support for the self-employed continues to be via the Self Employed Income Support Scheme (SEISS). The deadline to apply for the third SEISS grant is midnight on Friday 29 January 2021. Remember that this is not a grant which your accountant can apply for on your behalf – you must make the claim yourself. The grant will be based on your average annual profits for the tax years 2016/17 through to 2018/19.
Rishi Sunak has promised a fourth SEISS grant to cover the three months from February to April 2021, but no further details of this have been released yet.
We will keep you up to date with further details as and when the Government releases information, but if you have any questions in the meantime please get in touch.