Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if the Government will make an assessment of the potential merits of increasing the discretionary grant fund afforded to local authorities in order to support SMEs.

The business grant funds, including the Local Authority Discretionary Grant Fund, were primarily intended to support small businesses which faced high fixed property-related costs during the strict lockdown period, when consumer footfall was dramatically reduced. As most businesses in most areas are now able to reopen, it is right that we wind up the grant schemes, all of which closed to new applicants on 28 August. The Government continues to review the economic situation and consider what support businesses need. However, there are currently no plans to make further support available through the Local Authority Discretionary Grant Fund.

We do recognise that businesses which are forced to totally close for a substantial period in local lockdowns are likely to require additional support, which is why on 9 September the Government announced a new Local Lockdown Grant Fund, to enable Local Authorities to provide business properties which are required to shut due to nationally-imposed local lockdowns with grants of up to £1,500 for each three week closure period.

Businesses can still access a range of other support from the Government, including the furlough scheme which remains open, and Bounce Back Loans. In addition, all retail, hospitality and leisure businesses have had their business rates cancelled in full for the entire year.