Small Businesses: Coronavirus

(asked on 28th April 2020) - View Source

Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, if his Department will publish guidance on the financial support available during the covid-19 outbreak for small businesses that (a) work with a licence as a business within another business rather than having a lease contract of a property and (b) are ineligible for Small Business Rates Relief or Rural Rates Relief.


Answered by
Paul Scully Portrait
Paul Scully
This question was answered on 12th May 2020

In England, the Small Business Grant Fund (SBGF) and the Retail, Hospitality and Leisure Grant Fund (RHLGF) have supported many thousands of small businesses with their ongoing business costs in recognition of the disruption caused by Covid-19. These grants only apply to businesses in England.

Local business support policy is devolved and the Barnett consequentials formula is being applied. Therefore, the Devolved Administrations will receive over £2.3bn additional funding as a result of these English grant schemes, enabling them to provide support to businesses in Scotland, Wales, and Northern Ireland.

On 1 May 2020, the Business Secretary announced that up to £617 million is being made available to Local Authorities in England to allow them to provide discretionary grants. This is an additional 5% uplift to the £12.33 billion funding previously announced for the Small Business Grants Fund (SBGF) and the Retail, Hospitality and Leisure Grants Fund (RHLGF).

The additional Local Authority Discretionary Grants Fund is aimed at small businesses in England with ongoing fixed property-related costs but not liable for business rates or rates reliefs. We are asking 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.

Local Authorities in England are responsible for defining precise eligibility for this fund and may choose to make payments to other businesses based on local economic need, subject to those businesses meeting the specific eligibility criteria. Businesses already in receipt of the Small Business grant, a Retail, Hospitality and Leisure grant or Self-employed Income Support Scheme payment are not eligible.

The Devolved Administrations will receive additional funding as a result of this announcement through the Barnett formula in the usual way, with up to £116m of additional Barnett consequentials.

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