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

To ask the Secretary of State for Business, Energy and Industrial Strategy, with reference to the additional funding announced by the Government on 2 May 2020 for local authorities to provide discretionary business grants, how the amount of funding available to each local authority has been calculated; and what guidance has been issued to local authorities on how that additional funding should be spent.

My Rt. Hon. Friend the Secretary of State for Business, Energy and Industrial Strategy announced that up to £617 million is being made available to Local Authorities in England under the Local Authority Discretionary Grants Fund (LADGF). This is in addition 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 data return from Local Authorities of Monday 4th May 2020, which includes each Local Authority’s assessment of eligible hereditaments for the Small Business Grants Fund (SMGF) and Retail Hospitality and Leisure Grants Fund (RHLGF), is used as the baseline for calculating the allocation of Discretionary Grant Funds for each Local Authority. The allocation for each local authority is 5% on top of their estimated spend of the Small Business Grants Fund (SMGF) and Retail Hospitality and Leisure Grants Fund (RHLGF). All 314 Local Authorities administering the scheme will receive a letter this week setting out their guaranteed minimum allocation, giving them confidence to set up their local schemes. If a Local Authority subsequently identifies and is able to fund more businesses from the Small Business Grants and/or Retail Hospitality and Leisure Grants Fund than they identified in their data return of the 4^th May, we will increase their 5% allocation.

Guidance, intended to support Local Authorities in administering the Discretionary Grants Fund, was published 13^th May.

Guidance here: https://www.gov.uk/government/publications/coronavirus-covid-19-guidance-on-business-support-grant-funding.

This will not replace existing guidance for the Small Business Grant Fund (SBGF) or the Retail Hospitality and Leisure Grant Fund (RHLGF).

Guidance here: https://www.gov.uk/government/publications/coronavirus-covid-19-business-support-grant-funding-guidance-for-businesses.