Business: Coronavirus

(asked on 30th December 2020) - View Source

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.


Answered by
Kemi Badenoch Portrait
Kemi Badenoch
President of the Board of Trade
This question was answered on 12th January 2021

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.

Reticulating Splines