In response to the start of the third national lockdown, the Chancellor has announced that closed businesses in the retail, hospitality and leisure sectors will receive an additional one-off grant worth up to £9,000 per property. The grant will be based on the rateable value of a business premises:
£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
A further £594 million is also being made available for local councils to support businesses not eligible for these grants. Businesses will need to apply to their local authorities to access this funding.
These grants come on top of existing business support measures for companies most affected by the pandemic, including grants of up to £3,000 for closed businesses, and up to £2,100 a month for businesses once they reopen.
This latest announcement is undoubtedly good news for businesses in these sectors that have been forced to shut. However, it remains to be seen whether it will be enough to help cash-strapped organisations to survive what is expected to be a very challenging next few months. We expect a more comprehensive package of support measures to be unveiled in the Spring Budget in March…if not before.