£4.6 billion in new lockdown grants to support businesses and protect jobs

January 07, 2021 |   | 
Simon Dadswell

Simon Dadswell

Hospitality businesses are to receive a one-off grant worth up to £9,000, the Chancellor has announced.

The cash is provided on a per-property basis to support businesses through the latest restrictions, and is expected to benefit more than 600,000 retail, hospitality and leisure venues, worth £4 billion in total across all nations of the UK.

This follows the Prime Minister’s announcement that these business will be closed until at least February half-term in order to help control the virus.

A further £594 million is also being made available for Local Authorities and the Devolved Administrations to support other businesses not eligible for the grants, that might be affected by the restrictions. Businesses should apply to their Local Authorities.

The new one-off grants come in addition to billions of existing business support, including grants worth up to £3,000 for closed businesses, and 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 now extended to April and 100% government backed loans, extended until March.Syrve_Speak with an Expert Banner

The one-off top-ups will be granted 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
  • £9,000 for businesses with a rateable value of over £51,000
  • Any business which is legally required to close, and which cannot operate effectively remotely, is eligible for a grant

Business support is a devolved policy and therefore the responsibility of the devolved administrations, which will receive additional funding as a result of these announcements in the usual manner:

  • the Scottish Government will receive £375 million
  • the Welsh Government will receive £227 million
  • the Northern Ireland Executive will receive £127 million

This is in addition to the increased funding already guaranteed by the UK Government to the devolved administrations to help them with their coronavirus responses in the months ahead.

Small businesses in the devolved administrations should also be able to benefit from other UK-wide measures in the government’s unprecedented package of support for business, including the various business lending schemes (where the repayment terms were made easier as part of the Winter Economy Plan), and the extension of the Self Employment Income Support Scheme.

Book A Demo Of The Syrve System To Experience The Future Of Operations

Our hospitality experts take the time to listen to your needs, learn about your business and will advise and guide you every step of the way to ensure Syrve is right for you, if it isn't we will tell you. Sound fair?