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

To ask the Secretary of State for Business, Energy and Industrial Strategy, whether businesses that are registered at a domestic residential address are eligible for the Local Authority Discretionary Grant; and what guidance has been issued to local authorities on the distribution of the Local Authority Discretionary Grant to businesses registered at a domestic residential address.

On?1 May,?the Government announced that up to £617 million has been made available to local authorities?in England to allow them to provide discretionary grants. The?Local Authority Discretionary Grants Fund (LADGF) is aimed at small businesses with ongoing fixed property-related costs that are not liable for business rates or rates reliefs.

We are asking local authorities to prioritise the following types of businesses for grants from within this funding pot:

• Small businesses in shared offices or other flexible workspaces. Examples could include units in industrial parks, science parks, and incubators which do not have their own business rates assessment.
• Regular market traders with fixed building costs, such as rent, who do not have their own business rates assessment.
• Bed & breakfasts which pay Council Tax instead of business rates.
• Charity properties in receipt of Charitable Rate Relief, which would otherwise have been eligible for Small Business Rates Relief or Rural Rate Relief.

Local authorities are responsible for defining the 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.?Guidance for Local Authorities was published 13 May: https://www.gov.uk/government/publications/coronavirus-covid-19-guidance-on-business-support-grant-funding.

We appreciate that there?is substantial demand for the LADGF. Local Authorities will need to manage?their?scheme to stay within?their?funding?allocation?and?will have?to make choices about which businesses?to?prioritise.

Where businesses are registered at a domestic residential address, tax and insurance details should identify the separate costs of a home-based business. Local Authorities should take steps to understand the specific costs of the business.

Officials are keeping in close contact with Local Authorities?to understand how the scheme is rolling out and advising ministers on any additional support?which could?be offered to help businesses and support local economies.

Any enquiries or appeals?regarding?the provision of, or eligibility for, grant funding should be directed?in the first instance to the relevant?local authority.

The?grant?funding?schemes are?part of?the Government’s?wider?package of support for business.?For further information on what support you might be eligible for, please?visit: https://www.gov.uk/business-coronavirus-support-finder.