0800 644 6080
Call FREE from Landline and Mobile
Est. 1989

New Grants Promised to Businesses Forced to Close During Local Lockdowns

Written by: Keith Tully

Red door signNew grants have been promised to businesses in England obliged to close during local lockdowns imposed to stop the spread of Covid-19.

Different parts of the country have been forced into stricter lockdowns in recent months and expectations are that more such measures will be made necessary throughout autumn and winter.

To counter some of the potential impacts, affected businesses in England are being promised grants worth up to £1,500 per property every three weeks, with smaller firms eligible to claim up to £1,000 on the same basis.

The scheme is designed specifically to support businesses impacted by local lockdowns and not those affected by nationwide restrictions.

Grants will be counted as taxable income and distributed on the basis of the rateable values associated with the commercial properties relied upon by the local businesses making their claims.  

Local authorities will be responsible for distributing the grants and they will have the power to decide whether a particular business meets the relevant criteria for eligibility.

The government announced its grants scheme as part of its broader ‘Plan for Jobs’, which is intended to protect employment and employers in England in part through localised support for businesses directly impacted by newly-imposed coronavirus lockdowns.

“These grants provide businesses with a safety net as they temporarily close their doors to help save lives in their local areas,” said Steve Barclay, chief secretary to the Treasury.

“As local economies eventually and carefully re-open after local interventions, our Plan for Jobs is there waiting to help businesses get back on their feet, protect jobs and thrive in the future,” he added.

Business lobby groups have welcomed the extra support but warned that grants of up to £1,500 every three weeks will not be enough to save significant numbers of businesses that are badly hit by localised lockdowns.

Indeed, the British Chambers of Commerce (BCC) has highlighted the fact that roughly one in three of its members currently have three months or less of cash in reserve.

“Ministers should increase the amount on offer to ensure businesses and jobs are protected, and extend coverage to more firms that are hard-hit but not forced to close,” said the BCC’s director general Adam Marshall in a statement.

Keith Tully

Author
Keith Tully
Partner

Join Keith Tully on Linked In Follow Keith Tully on Twitter

Keith has been involved in Business Rescue since 1992, during which time he’s worked for both independent and national firms. His specialties include company restructuring matters and negotiating with HMRC on his clients behalf.

Meet our Team of Experts
Director Support - Business suffering from Cash-Flow Problems?
If your company is financially distressed, we also offer the below services:
Business debt recovery

  • Recover Unpaid Invoices of £5k+
  • Expert Credit Control Services
  • Stop Late Payers & Bad Debts
Visit Site
Time to pay experts

  • Get Breathing Space with HMRC
  • Support with Business Tax Arrears
  • 35 Years HMRC Negotiation
Visit Site
UK Business Finance

  • Rejected for a CBILS Loan?
  • Get Emergency Business Funding
  • Supporting 1000+ UK Companies
Visit Site
Who we help
  • Company Directors
  • Finance Directors
  • Sole Traders
  • Accountants
  • Small Businesses
  • Large Businesses
  • Partnerships
Contact our team
Jonathan Munnery
Gillian Sayburn
Julie Palmer
Processing...
or Find your Nearest Office

Here at Real Business Rescue we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See PRIVACY POLICY

Business Rescue Advice for Directors
Free Guide for Limited Company Directors
Business Rescue Advice for Directors
  • How to manage company cash flow problems
  • Advice on dealing with HMRC
  • Understanding rescue and closure options
  • And much more...
Free Guide Download
Desling with your Insolvent Clients
Business Rescue Guide for Accountants
Dealing with your Insolvent Clients
  • Helping you advise insolvent clients
  • Spotting signs of client distress
  • Exploring business rescue options
  • And much more...
Free Guide Download
Our numbers speak for themselves
78
Number of UK Offices
30000
Directors Helped
70+
Licensed Insolvency Practitioners