Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of providing grants for businesses that have accrued excess stock as a result of Government policy changes on covid-19 restrictions.

The Government recognises that this continues to be a challenging time for businesses in a wide variety of sectors, and that the restrictions which are necessary to save lives and protect the NHS cause disruption for businesses.

The Government has made available an unprecedented package of economic support, including several grant schemes. Businesses that are legally required to close due to Covid restrictions are eligible for cash grants from the Local Restrictions Support Grant of up to £3,000 per month. In addition, these businesses will benefit from one-off grants of up to £9,000 as announced on 5 January.

Businesses which are not eligible for grants for closed businesses may be able to benefit from the Additional Restrictions Grant (ARG). We recently increased the funding available under this scheme to £1.6 billion across England. It is up to each local authority to determine eligibility for this scheme based on their assessment of local economic need; however, we encourage local authorities to support businesses which have been impacted by COVID-19 restrictions, but which are ineligible for the other grant schemes.

In addition to the grant schemes, businesses can benefit from an extension of the furlough scheme until April; an extension of the COVID-19 loan schemes until March; support for the self-employed via the SEISS; a business rates holiday for all retail, hospitality and leisure business properties; mortgage holidays; enhanced Time to Pay for taxes; and VAT cuts and deferrals.