Retail, hospitality and leisure businesses are in line for a one-off grant of up to £9,000 per property to help them weather the latest coronavirus lockdown, chancellor Rishi Sunak announced this morning.
The funding comes after prime minister Boris Johnson announced last night that all non-essential shops would be forced to remain closed until at least mid-February in a bid to contain the virus.
Sunak announced this morning that the grants are expected to help more than 600,000 business properties, and will be worth £4bn.
Closed businesses across hospitality, retail and leisure with a rateable value of £15,000 or less will be eligible for a £4,000 grant, while those with a rateable value of £15,000 to £51,000 can apply for a £6,000 grant.
Meanwhile, £9,000 will be available for properties with a rateable value of more than £51,000.
The support package is a devolved policy, therefore regional governments in Scotland, Wales and Northern Ireland will receive £375m, £227m and £127m respectively.
In addition, a £594m discretionary fund will also be made available to support other affected businesses.
Sunak said: “The new strain of the virus presents us all with a huge challenge – and whilst the vaccine is being rolled out, we have needed to tighten restrictions further.
“Throughout the pandemic we have taken swift action to protect lives and livelihoods and today we are announcing a further cash injection to support businesses and jobs until the spring.
“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.”
Yesterday’s announcement also outlined measures which would enable estate agents to continue carrying out property viewings through the lockdown period.
The plans come in addition to £1.1bn further discretionary grant funding for local authorities, Local Restriction Support Grants worth up to £3,000 a month and an extension of the furlough scheme until April.
Ion Fletcher, director of finance policy at the British Property Federation, said: “We welcome the latest package of support for the hospitality, leisure and retail businesses at the sharp end of the pandemic.
“However, as things stand, business rates relief for these sectors will expire at the end of March and it’s not clear what will happen after that. A return to full rates will be unaffordable for many and will lead to closures, so we would encourage the government to commit to further rates support for businesses that continue to be affected by Covid-19.”
