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What is the Local Restrictions Support Grant?

What is the Local Restrictions Support Grant?

Monday, 26 October 2020

The coronavirus Local Restrictions Support Grant supports businesses that were open as usual, providing services in person to customers from their business premises, but which have to close due to local lockdown restrictions imposed by government. The grant will provide businesses with up to £3,000 per month.

Originally, businesses needed to have been closed for three weeks to receive the grant, however, following the Chancellor’s announcement on 12 October, businesses will now receive the grant after two weeks of closure.

Who’s eligible for the grant?

Your business may be eligible for the Local Restrictions Support Grant if it:

  • occupies property on which it pays business rates

  • is in a local lockdown area and has been required to close because of the formal publication of local restrictions guidance that resulted in a first full day of closure on or after 9 September

  • has been required to close for at least two weeks because of the lockdown

  • has been unable to provide its usual in-person customer service from its premises

For example, this could include non-essential retail, personal services or cafés and restaurants that operate primarily as an in-person venue, but which have been forced to close those services and provide a takeaway-only service instead.

Eligible businesses will get one grant for each property liable for business rates within the lockdown zone.

Businesses that are required to close but do not pay business rates may be eligible for funding at the discretion of the local council.

How much will you get?

If your business is eligible for the Local Restrictions Support Grant and has a property with a rateable value of less than £51,000, you will receive a cash grant of £1,000 for each two-week period your business is closed.

If your business is eligible and has a property with a rateable value of £51,000 or above, you will receive a cash grant of £1,500 for each two-week period your business is closed.

Grants will be based on the rateable value of the property on the first full day of local lockdown restrictions.

Discretionary funding

The Chancellor has now provided a further update regarding the discretionary funding available from your Local Authority, specifically for businesses in hospitality. You may receive a grant of up to £2,100 at the discretion of your local council if:

  • your business is required to close but you do not pay business rates
  • if your business is not required to close but has been severely impacted by the restrictions on socialising.

What you will get

For properties with a rateable value of £15,000 or less, grants of £934 per month are available

For properties with a rateable value over £15,000 and below £51,000, grants of £1,400 per month are available.

For properties with a rateable value of exactly £51,000 and over, grants of £2,100 per month are available.

Local Authorities will also receive a 5% top up amount to these implied grant amounts to cover other businesses that might be affected by the local restrictions, but which do not precisely fall into these categories.

Who’s not eligible for the grant?

The following are excluded from the Local Restrictions Support Grant:

  • businesses which can continue to operate during the lockdown because they don’t depend on providing direct in-person services from their premises

  • businesses that have chosen to close, but have not been required to close as part of a local lockdown

  • businesses that are still subject to national closures such as nightclubs

  • businesses that have reached the state aid limit (€200,000 over a three-year period)

if you have any questions on the Local Restrictions Support Grant, please get in touch with your usual Larking Gowen contact. You can find contact details on the Our People section of the Larking Gowen website.

Alternatively, call 0330 024 0888 or email enquiry@larking-gowen.co.uk.

Julia Dickens

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