Authorities expands Job Help Scheme and assist for self-employed
What extra cash will businesses in ‘tier two’ areas get?
The Government’s also announced that grants likely to be worth up to £2,100/mth will be made available to firms in ‘tier two’ areas in England – for example, in London and Birmingham currently. Here are the need-to-knows:
- Firms in ‘tier two’ areas which aren’t legally required to close but have been adversely affected by local restrictions can apply, such as hotels and restaurants. The Government says about 150,000 businesses in total could benefit. The funds will be administered by local authorities, and it’s likely businesses will need to apply to their local authority to get one.
- Grants are likely to be worth up to £2,100/mth – though the exact amounts will be set by local authorities. The Government says it’s providing money to local authorities “to support cash grants of up to £2,100/mth”, but it will ultimately be up to local authorities to determine what businesses can get.
However, as a guide the Government says it’s giving local authorities funding equivalent to £934/mth for properties with a rateable value of up to £15,000; £1,400/mth for properties with a rateable value of between £15,001 and £51,000; and £2,100/mth for properties with a rateable value of over £51,000. Local authorities will also get an extra 5% to cover businesses that may not be in the rates system.
- The grants will initially run until April. However, there will be a “review point” in January.
- Businesses which have already been subject to restrictions can apply retrospectively. The Treasury says firms can apply “back to the point when the restrictions began”. However, Mr Sunak said that any area which has been under enhanced restrictions can backdate grants to August, so we’re checking the exact cut-off point.
These grants are in addition to higher levels of additional business support given to local authorities moving into tier three, and also the local lockdown grants worth up to £3,000/mth that are available to businesses which are forced to close. The grants are only available in England, as business support is fully devolved. For more on what’s available in Scotland, Wales and Northern Ireland, see our Coronavirus Self-Employed Help guide.