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New Business Grant Guidance and revised LRSG Scheme

The Government has just published the guidance on the new Closed Businesses Lockdown Payment announced last week and updated the eligibility for the LRSG (copy attached).

 

The key points on these two grants are

  • Local Restrictions Support Grant (Closed) Addendum: 5 January onwards
    • The payment period is initially extended to 42 days from 5 January 2021 rather than the 14-day payment cycle in tiers. Local Authorities have been asked to provide the funding as soon as the receive it rather than waiting to the end of the 42 day period (ie., it will not be paid in arrears). After the 42 day period, any future payment period will be reviewed.
    • Businesses that are eligible are those that have been mandated to close by Government and include non-essential retail, leisure, personal care, sports facilities and hospitality businesses. You can reference these in the legislation https://www.legislation.gov.uk/uksi/2020/1374/schedule/3A or the lockdown guidance https://www.gov.uk/guidance/national-lockdown-stay-at-home#businesses-and-venues
    • The Local Restrictions Support Grant (Closed) Addendum: Tier 4 (Open) and (Sector) and (Closed) now cease to apply, although applications can still be made for eligible periods before national restrictions.
    • Businesses supported through LRSG (Sector) will be eligible for funding under the LRSG (Closed) Addendum: 5 January onwards during national restrictions, for example nightclubs and sexual entertainment venues.
    • The following thresholds apply to LRSG (Closed) Addendum: 5 January onwards:
  1. Businesses occupying hereditaments appearing on the local rating list with a rateable value of exactly £15,000 or under on the date of the commencement of the widespread national restrictions will receive a payment of £2,001 per 42-day qualifying restriction period.
  2. Businesses occupying hereditaments appearing on the local rating list with a rateable value over £15,000 and less than £51,000 on the date of the commencement of the widespread national restrictions will receive a payment of £3,000 per 42-day qualifying restriction period.
  3. Businesses occupying hereditaments appearing on the local rating list with a rateable value of exactly £51,000 or above on the commencement date of the widespread national restrictions, will receive £4,500 per 42-day qualifying restriction period.

 

  • Closed Businesses Lockdown Payment
    • Businesses excluded from both these grants include:
      • Businesses that are able to conduct their main service because they do not depend on providing direct in-person services from premises and can operate their services effectively remotely (e.g. accountants, solicitors).
      • Businesses in areas outside the scope of the national restrictions, as defined by Government, are also excluded. 51. Businesses that have chosen to close but not been required to will not be eligible for this grant.
    • Eligibility for the CBLP is the same as the LRSG (Closed) Addendum: 5 January onwards scheme. Businesses that are eligible are those that have been mandated to close by Government and include non-essential retail, leisure, personal care, sports facilities and hospitality businesses.
    • The scheme will close for applications on 31 March 2021, but it is expected Local Authorities will identify and pay all relevant businesses as soon as possible once the funding is received.
    • The scheme will close on 30 April 2021, so final payments will need to be made by this date.
    • The following funding thresholds apply to the Closed Businesses Lockdown Payment:
  1. Businesses occupying hereditaments appearing on the local rating list with a rateable value of exactly £15,000 or under on the date of the commencement of the widespread national restrictions will receive a payment of £4,000.
  2. Businesses occupying hereditaments appearing on the local rating list with a rateable value over £15,000 and less than £51,000 on the date of the commencement of the widespread national restrictions will receive a payment of £6,000.
  3. Businesses occupying hereditaments appearing on the local rating list with a rateable value of exactly £51,000 or above on the

 

  • Also
    • There is need for Councils to run two separate application processes. For example, a business with a rateable value of exactly £15,000 will receive one payment of £6,001 (£2,001 LRSG (Closed) Addendum and £4,000 CBLP
    • Local Authorities will also receive a £500 million top up to the ARG and this can be used to support businesses that are adversely impacted but not eligible under the LRSG (Closed) Addendum: 5 January onwards or the Closed Businesses Lockdown Payment
business-support-package-january-2021-lockdown-la-guidance
agto@agto.co.uk
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