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Covid-19, Government announce continued financial support for jobs and businesses.

JANUARY 2021 BUSINESS SUPPORT, 5 January 2021

Throughout this crisis, our economic priority remains the same: to protect jobs.

We have already set out our economic package of support for businesses over the Winter, including monthly grants for closed businesses worth up to £3,000 per month, extending the furlough scheme to April and providing further SEISS grants to support the self-employed to April.

But given further national restrictions announced by the Prime Minister yesterday that will prevent further spread of the virus, today we provide additional support to the most affected businesses, worth £4.6 billion across the United Kingdom.

  • A one-off grant for closed businesses in England of up to £9,000
  • £500m discretionary funding provided to English local authorities to support local businesses
  • Barnett funding of £729 million

This support will help businesses get through this difficult period through to the Spring. We will take further decisions about our economic response to coronavirus and how best to support the economy, businesses and jobs at the Budget on the 3rd March.

New one-off grant to support retail, hospitality and leisure businesses forced to closed

Retail, hospitality and leisure business premises forced to close can claim a one-off grant of up to £9,000. The one-off additional grant each business premises will receive depends on their rateable value:

  • Businesses with a rateable value of £51,000 or above: £9,000
  • Businesses with a rateable value between £15,000 and £51,000: £6,000
  • Businesses with a rateable value of £15,000 or below: £4,000

This one-off grant is in addition to the existing monthly closed grants of up to £3,000 per month that businesses continue to be eligible for. These grants are worth over a £1 billion in total per month.

We expect over 600,000 Retail, Hospitality and Leisure business premises in England to benefit from these grants.

Businesses can receive multiple grants, as they are eligible on a per premises basis.

Local authorities will receive the funding for these one-off grants next week, and we encourage them to make payments to businesses as soon as possible.

Additional discretionary funding for local authorities to support their local businesses

Local Authorities (in England) will also be given an additional £500 million of discretionary funding to support their local businesses.

This builds on (and will be allocated in the same way as) the £1.1 billion discretionary funding (worth £20 per head of population) which local authorities in England have already received to support their local economies and help businesses impacted.

Barnett funding of £729m for Scotland, Wales and Northern Ireland

Scotland will receive £375 million, Wales £227 million and Northern Ireland £127 million to support their local businesses.

SUMMARY OF EXISTING SUPPORT

Support for jobs…
We have extended the furlough scheme until the end of April 2021. The government will cover the cost of 80 per cent of the wages of furloughed employees for hours not worked – employers will only be asked to cover NICs and pension contributions. It is available across all tiers, and we have added flexibility so it can be used to cover reduced hours.

We have extended the self-employed scheme until April 2021. Building on the two grants we have already provided since the start of the pandemic, the government is now providing a third grant, covering 80 per cent of average trading profits between November and January 2021, capped at £7,500 in total. We will also introduce a fourth grant, to cover February to April, in due course.

Support for businesses…

Businesses forced to close can claim grants of up to £3,000 per month (worth over £1 billion per month). Any business in England forced to close due to national or local restrictions can claim grants, via their local authority, of up to £3,000 per month, per business premises, depending on rateable value:

  • Businesses with a rateable value of £51,000 or above: £3,000 per month
  • Businesses with a rateable value between £15,000 and £51,000: £2,000 per month
  • Businesses with a rateable value of £15,000 or below: £1,334 per month

In addition, on 5th January, the Government announced an extra £4.6 billion to protect jobs and support affected businesses as restrictions get tougher. This includes:

(1) Retail, hospitality and leisure businesses forced to close can claim a one-off grant of up to £9,000. This is in addition to the monthly closed grant amounts above. The one-off additional grant each business premises will receive depends on their rateable value:

  • Businesses with a rateable value of £51,000 or above: £9,000
  • Businesses with a rateable value between £15,000 and £51,000: £6,000
  • Businesses with a rateable value of £15,000 or below: £4,000

(2) Local authorities (in England) will also be given an additional £500 million discretionary funding to support their local businesses. This builds on the £1.1 billion discretionary funding (worth £20 per head of population) which local authorities in England have already received to support their local economies and help businesses impacted.

Support for local authorities…

The Government is providing further funding for local authorities in order to support the ongoing public health and outbreak management costs of tackling coronavirus. The Contain Outbreak Management Fund has been increased such that it can provide monthly payments to local authorities under higher restrictions. Areas at Tier 3 and 4 will receive £4 per head of population per 28 days, and those at Tier 2 will receive £2 per head per 28 days. This funding, potentially worth over £200 million per month, can be used to fund local public health activities such additional contact tracing, testing for hard-to-reach groups, and public health communications. It will be in addition to the more than £975 million that has been committed to date.

In addition, local authorities are expected to receive over £3 billion of support next year. This new funding will help local authorities assist more than 4 million households least able to pay council tax, compensate for 75 per cent of the irrecoverable loss of council tax and business rates revenue in 2020-21, and other additional expenditure pressures arising from coronavirus. This £3 billion next year builds on the £6.7 billion provided for local authorities this year – taking the total support for local authorities to over £10 billion.

In addition, all wet-led pubs in areas that were in Tiers 2, 3, or 4 for any part of December will receive £1,000 as a Christmas Support Payment. This will be administered by local authorities. A ‘wet-led’ pub is defined as one which makes less than 50 per cent of its turnover from food sales (based on pre-Covid sales data).

 

£280 BILLION PACKAGE, through our PLAN FOR JOBS:

Business rates relief…
CBILS, CLBILS, BBLS and Future Fund…
VAT deferrals and Time To Pay…
£1,000 increase to Universal Credit and Hardship Fund for council tax…
£500 self-isolation compliance payments…
Kickstart scheme…
Mortgage holidays…
Eat Out To Help Out in August…
Temporary VAT cut to 5%…
£1.57 billion Culture Recovery Fund…
Money for charities…
Stamp duty cut…
Restart scheme…