Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will ensure that future covid-19 business support grant schemes distributed by local authorities are based on the number of businesses and employment in an area rather than a per capita population figure.
The Additional Restrictions Grant, which is allocated on a per capita basis, is only one part of the Government’s comprehensive support package for businesses and local authorities during this time. The Local Restrictions Support Grant (Closed) is allocated on a per-business basis and provides businesses in England which are legally required to close due to national or local restrictions with up to £3,000 per month of closures, depending on their rateable value. Businesses which are legally required to close are also eligible for one-off grants worth up to £9,000, depending on their rateable value.
In addition, through the Local Restrictions Support Grant (Open), local authorities which were subject to restrictions on socialising (in particular a ban on indoor household mixing) before the latest lockdown was announced received additional funding so that they could make grants of up to £2,100 per month to hospitality, leisure and accommodation businesses which were able to remain open, but which were experiencing a severe reduction in demand due to restrictions on socialising. This funding is also calculated on a per-business basis.
Given that both population and business densities create pressures on local authorities, by providing some funding per-head and some per-business we are achieving a fair balance.