Asked by: Matt Rodda (Labour - Reading East)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, whether he plans to increase funding allocations for local authorities which have distributed their allocated funds from the Local Restrictions Support Grant (LRSG) and Additional Restrictions Grant (ARG) but have an additional need for emergency support.
Answered by Paul Scully
The Government is committed to continuing to provide financial support via local authorities for business premises that are required to close due to restrictions that have been put in place to tackle Covid-19 and save lives.
BEIS will provide Local Authorities with the full costs of providing funding to eligible businesses that are required to close through Local Restrictions Support Grant (Closed). Where the initial allocation of this grant to Local Authorities is insufficient, it will be topped up.
Discretionary grants – Local Restrictions Support Grant (Open) and Additional Restrictions Grant - are formula based. With the announcement of a further period of national lockdown starting on 5th January a further £500m has been allocated to Local Authorities via the Additional Restrictions Grant to support businesses severely affected by the restrictions even though they are not required to close, including those falling outside the business rates system such as market traders. This comes on top of £1.1bn already allocated in November 2020. It is expected that local authorities use this additional resource quickly to support businesses in their area.
Asked by: Matt Rodda (Labour - Reading East)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, whether local authorities receive funding for the Local Restrictions Support Grant (LRSG) and Additional Restrictions Grant (ARG) up front or are reimbursed.
Answered by Paul Scully
The Government has put forward an unprecedented package of support for businesses in recognition of the disruption caused by Covid-19. This support includes extensive grant funding for businesses that have been required by law to close as a result of, or have been severely impacted by, localised and national restrictions.
As set out in the Government guidance, local authorities have received an initial allocation of 90% of the estimated grant funding amount for the Local Restrictions Support Grant (Closed) Addendum and Closed Business Lockdown Grant schemes. When this threshold of funding is reached, Government will pay local authorities the further agreed funding. The additional £500 million distributed through the Additional Restrictions Grant scheme was paid to local authorities in one lump sum payment, as with the previous ARG payment. We are working closely with local authorities to ensure that funding is delivered to businesses that are in scope of these schemes as quickly as possible.
Asked by: Matt Rodda (Labour - Reading East)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, how much of the funding available under the (a) Local Restrictions Support Grant and (b) Additional Restrictions Grant has been allocated to local authorities but not yet distributed to businesses.
Answered by Nadhim Zahawi
The Government is working closely with local authorities in England to distribute funding available under the Local Restrictions Support Grant and the Additional Restrictions Grant to businesses as quickly as possible. Local authority guidance was published on 3rd November and grant offer letters were sent to local authorities on 6th November. Payments to local authorities have been made since 13th November.
We are working closely with local authorities to monitor the ongoing implementation of the grant schemes.