• Date

    08 Jan 2021
  • Category

    Advisory

Update on £4.6 billion Government support package for businesses in New Year lockdown

At the start of 2021, the Chancellor announced another round of support for businesses in the retail, hospitality and leisure sectors including one-off top up grants worth up to £9,000, to help businesses through to the Spring. 

Highlighted details of the support package and measures announced are:

  • Closed businesses in retail, hospitality and leisure sectors to receive one-off top up grants of up to £9,000.

  • £594 million discretionary fund also made available to support other impacted businesses.
  • These measures are in addition to £1.1 billion further discretionary grant funding for Local Authorities, Local Restriction Support Grants worth up to £3,000 a month and the extension of the furlough scheme to April 2021.

The support will be available to businesses closed during the current lockdown period and the cash is provided on a per-property basis to support businesses through the latest restrictions. It is expected that over 600,000 business properties will benefit from this support worth over £4 billion in total across all nations in the UK.

The Chancellor commented that “This will help businesses to get through the months ahead – and crucially it will help sustain jobs, so workers can be ready to return when they are able to reopen”.

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. Business should apply to their Local Authorities.

The new one-off grants come in addition to billions of 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.

The government has also provided 100% business rates relief for retail, hospitality and leisure businesses, £1.1 billion existing discretionary funding for Local Authorities, the furlough scheme now extended to April and 100% government backed loans, extended until March.

Further information

  • the one-off top-ups will be granted to closed businesses 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.
  • any business which is legally required to close, and which cannot operate effectively remotely, is eligible for a grant.
  • business support is a devolved policy and therefore the responsibility of the devolved administrations, which will receive additional funding as a result of these announcements in the usual manner:
  • the Scottish Government will receive £375 million.
  • the Welsh Government will receive £227 million.
  • the Northern Ireland Executive will receive £127 million.

The level of grants may vary across the four nations. More details on the support available to businesses can be found here, or by visiting the website of the relevant Local Authority:

If you require any further information on the latest support packages available and need guidance, please contact your usual Azets advisor.

You might also be interested in