The Government has issued an unprecedented amount of financial support for businesses to mitigate any loss of income resulting from the coronavirus pandemic. MPs have a vital role relaying the circumstances of local businesses in their constituency to the Government so that support can be accessed by all who require it.
£12.3 billion has been allocated by the Government for the Small Business Grants Fund (SGBF) and the Retail, Hospitality and Leisure Grants Fund (RHLGF), providing a lifeline for small businesses and their employees. Lucy Allan MP has been lobbying the Chancellor to ensure that business that are ineligible for these grants but require financial support can access it.
On Saturday 2nd May, the Business Secretary Alok Sharma MP announced a new discretionary fund, totalling £617 million, would be made available for local authorities to issue to businesses that fell outside the scope of the SBGF and the RHLGF.
This discretionary fund is aimed at small businesses with ongoing fixed property-related costs. The Government has asked local authorities to prioritise businesses in shared spaces, regular market traders, small charity properties that would meet the criteria for Small Business Rates Relief, and bed and breakfasts that pay council tax rather than business rates.
The allocation of funding is at the discretion of the local authority, which has been given the flexibility to support business as required. To qualify, businesses must:
- have less than 50 employees
- demonstrate they have seen a significant loss of income due to coronavirus.
There will be three levels of grant payments – £25,000, £10,000 or under £10,000. Local authorities will have discretion to make payments of any amount under £10,000 to support businesses based on need. It will be for councils to adapt this approach to local circumstances.
Guidance for local authorities on the administration of discretionary grants will be published in the coming days, with the Government announcing the exact allocation for each local authority this week.
Lucy Allan MP said:
“I am pleased that the Government has listened to MPs who have been lobbying for further support for business. I am aware of a number of businesses in Telford that are currently ineligible for Government grant funding, but are struggling financially. This new fund will allow local authorities to be flexible when issuing grant funding and ensure that companies can receive grants as soon as possible.
Along with the ‘Bounce Back’ loan scheme announced by the Chancellor, I am confident that this new grant will ensure that all businesses in Telford who require financial support can access it. I will continue to closely monitor the local authority’s administration of these grants to ensure that businesses are not unreasonably declined for funding.”
