Native authorities blame the federal government for the gradual launch of Covid-19 grants
Originally written by Timothy Adler about small business
Local authorities have blamed the government for the slow payment of Covid-19 grants during the lockdown, with companies still waiting for cash.
Despite the government claiming to have disbursed £ 4.6 billion in Covid-19 grants to be distributed by all 314 local authorities through the current national lockdown, it still needs the assistance first offered last year Free up £ 12 billion.
There were 10 different funding tranches to help small businesses through the local restrictions imposed in October and the one-month England lockdown starting November 5th.
> See also: £ 9000 Lockdown Grant for retail, hospitality and leisure businesses
The programs also cover support for various regional restrictions in December and the current lockdown in England, which is expected to run until at least February 22nd.
The Local Government Association states that the councils also struggled to distribute the money due to increasing problems with complying with state aid and screening applicants for fraud. They have been focused on getting larger amounts out for the January closings as opposed to the smaller grants last year.
However, companies pending grants say they may not be in business at the time the funds are finally released.
> See also: Where can you find your £ 1,000 Small Business Lockdown Grant?
The British Beer and Pub Association estimates that around three-quarters of so-called “wet pubs”, which focus on selling beverages, have failed to receive the £ 1,000 government subsidy promised in December.
Half of the pubs were still waiting for assistance with the November lockdown.
Craig Beaumont, chief of foreign affairs at the Federation of Small Businesses, criticized the "zip code lottery" for grants.
"Some councils have done well, others take weeks or months," he told the Financial Times. "The councils fear failure and want clarity in government, while the government insists they get the money."
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Local authorities blame the government for the slow release of Covid-19 grants