New Lockdown Grants For Retail, Leisure and Hospitality Sectors

The Chancellor has announced grants for businesses in the retail, hospitality and leisure sectors.

The one-off top-up grants will be provided on a per property basis to businesses closed as a result of the latest restrictions as follows:

  • £4,000 for businesses with a rateable value of £15,000 or under
  • £6,000 for businesses with a rateable value between £15,000 and £51,000
  • £9,000 for businesses with a rateable value of over £51,000

A further £594 million is also being made available for local authorities and the devolved administrations to support other businesses not eligible for the grants, that might be affected by the restrictions. The new one-off grants are in addition to the existing business support, including grants worth up to £3,000 for closed businesses, and up to £2,100 per month for impacted businesses once they reopen. We will continue to keep you updated as this evolves.

Additional Restrictions Grant

If your business has been affected because of local or national lockdown restrictions, you can apply for financial support.

Hospitality, leisure and non-essential retail businesses are eligible to receive a one-off payment grant, based on their rateable or rental values, to help them whilst restrictions are in place. Businesses that have no rateable value and have been forced to close or been adversely affected will also be eligible. These grants will be based on rental value and are in addition to the Government support already announced.

Please get in touch with your local authority to check your eligibility on these grants and to apply.

Sheffield businesses.
Barnsley businesses.
Rotherham businesses.
Doncaster businesses.

 

 

Supply Chain Support Grant

A new round of grant support has been announced targeting businesses that have seen a loss of income because they largely rely on the hospitality, accommodation, leisure and entertainment sectors for their trade.  

For example, travel agents impacted by international restrictions, caterers unable to service events and celebrations, or companies providing and servicing gym equipment who have seen a drop in trade due to leisure centre closures should speak to their Local Authority to apply for support. 

To find out more about these funding schemes, businesses should check their Local Authority’s website. Updates will be provided when applications will start being accepted, and this may vary for each Local Authority. 

Job Retention Scheme

The Government’s Job Retention (Furlough) Scheme has been extended to end of April 2021. This enables employees to receive 80% of their current salary for hours not worked, up to a maximum of £2,500. 30 November 2020 is the last day employers can submit or change claims for periods ending on or before 31 October 2020.

Businesses will have the flexibility to bring furloughed employees back to work on a part time basis or furlough them full-time and will only be asked to cover National Insurance and employer pension contributions.

The Job Support Scheme announced in October and scheduled to come in on 1st November to work alongside local restrictions has been postponed until the furlough scheme ends. Find out more.

 

Insurance Pay Outs for Small Businesses

Thousands of small businesses with business interruption insurance policies will receive pay-outs from their insurance company to cover losses from the first national lockdown.

During the lockdown of last spring, many businesses had their claims refused by insurers on the basis that only specialist policies covered such unprecedented restrictions.

However, a selection of policy wordings has been tested in court, with the Supreme Court ruling largely in favour of small businesses.

If your business had business interruption insurance cover before the first national lockdown in March 2020, now would be the time to get in touch with your insurance provider to make a claim.

Self-Employment Income Support Scheme

The Self-Employment Income Support Scheme Grant has also been extended to cover November 2020 to April 2021, in two instalments.

In the first instalment, November to January, the Government has increased the grant to now cover 80% of average monthly trading profits up to a maximum of £7,500.

The online service for claiming the third grant is now available.

Guidance has also been updated to provide clarity on verifying your eligibility with HMRC after having a new child.

Bounce Back Loan Scheme (BBLS)

Small and medium-sized businesses can borrow up to 25% of their turnover, to a maximum of £50,000.

Underwritten by Government, the loan is interest fee and fee-free for the first 12 months, and after that period will have interest of 2.5% per year. The scheme cannot be used by businesses claiming the Coronavirus Business Interruption Loan Scheme (CBILS), however if the CBILS loan is under £50,000 the business can ask their lender to transfer it to a Bounce Bank Loan instead.

The deadline for applications has been extended until the end of March 2021. Find out more here.

Coronavirus Business Interruption Loan Scheme (CBILS)

The CBILS scheme helps small and medium-sized businesses access financial support interest free for the first 12 months, up to £5million underwritten by the Government across six years.

If you are claiming via the CBILS scheme, you cannot also claim on the Bounce Back Loan Scheme (BBLS), however you can ask your lender to transfer your CBILS to BBLS if is us under £50,000.

The deadline for applications has been extended until the end of March 2021. Find out more here.

Coronavirus Large Business Interruption Loan Scheme (CLBILS)

The scheme helps businesses with an annual turnover of over £45 million access loans and other kinds of finance up to £200 million. The Government provides lenders with an 80% guarantee on individual loans.

The deadline for applications has been extended until the end of March 2021. Find out more here.

Future Fund

The Future Fund issues convertible loans to innovative UK companies with good potential, that typically rely on equity investment and are currently affected by the Coronavirus. The scheme will help these companies through the current period of economic disruption and the recovery, so they are able to continue their growth trajectory and reach their full economic potential. The Scheme is designed by Government and delivered by the British Business Bank. The application deadline as been extended to 31st January 2021.

The Government has made £250 million available for the Future Fund and will keep this amount under review.

The Growth Hub have produced a guide to the Future Fund and is available to access here.

Christmas Support Payment for wet-led pubs

The Christmas Support Payment for wet-led pubs supports pubs that predominantly serve alcohol rather than provide food and have been severely impacted over the festive season due to temporary local restrictions.

Eligible businesses may be entitled to a one-off cash grant of £1,000 from their local council in areas under Tier 2 or Tier 3 local restrictions.

Local councils will use their discretion to identify the right businesses to receive this funding.

Job Retention Bonus

Due to the extension of the Coronavirus Job Retention Scheme the Job Retention Bonus will not be paid in February 2021. A retention incentive will be reviewed and deployed at the appropriate time. Find out more here.

COVID-19 Corporate Financing Facility (CCFF)

Under the COVID-19 Corporate Financing Facility (CCFF), the Bank of England will buy short-term debt from large companies.

Beginning in March 2020, the scheme is due to operate for at least 12 months, and for as long as steps are needed to relieve cash flow pressures on firms that make a material contribution to the UK economy.

Find out more here.

UK Export Finance (UKEF)

UK Export Finance provides financial support for businesses exporting goods and services.

The Export Working Capital Scheme provides partial guarantees up to 80% of a loan to help UK exporters access working capital finance for specific export-related contracts.

The Direct Lending Facility Scheme loans within an overall limit of £8 billion to overseas buyers, allowing them to finance the purchase of capital goods and/or services from UK exporters. The loans can be made in up to eight currencies, with a value limit of £200 million and a fixed rate of interest.

Enquiries for the two options can be sent by email to: customer.service@ukexportfinance.gov.uk

Taxation

If you did not make a Self-Assessment Tax payment in July 2020, the deadline to pay your Self-Assessment bill is 31st January 2021, or 31st March 2021 for hospitality and tourism businesses. You may be eligible to set up a payment plan online or may be able to set up a Time to Pay Arrangement with HMRC if you’re unable to pay any other taxes in full. This lets you spread the cost of your tax bill by paying what you owe in instalments.

Find more information on this here and contact HMRC if you cannot pay your tax bills because of coronavirus here.

Business Rates

There is a 100% relief on business rates for the full 2020/21 period if you have up to 250 employees in the retail, leisure and hospitality sectors.

Nurseries listed on Ofsted’s Early Years Register and who provide the Early Years Foundation Stage are also eligible for business rates relief in the 2020/21 tax year. Find out more here.

Your local council should apply the discount automatically so contact them if you’re not getting a relief you think you’re entitled to. Find out more here.