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A guide to government grants for businesses during second England lockdown

A guide to government grants for businesses during second England lockdown
Dan Martin
Dan MartinDan Martin Content & Events

Posted: Tue 17th Nov 2020

_The government has released details of grants for businesses affected by the second lockdown in England running from 5 November until 2 December. The grants are being administered by local authorities. Find your local council's website here.

*** UPDATE 04/01/21: A third lockdown in England has been announced. The latest information on business grants is here ***_

Local Restrictions Support Grants (Closed)

This grant is for businesses with premises forced to close for a minimum 14 days due to the second lockdown and other coronavirus restrictions.

  • Businesses occupying premises with a rateable value over £15,000 and less than £51,000 on the date the local restrictions started will receive a payment of £2,000 per 28-day qualifying restriction period. Businesses will be paid £1,000 every 14 days.

  • Businesses occupying premises with a rateable value of exactly £51,000 or above on the date the local restrictions started will receive £3,000 per 28-day qualifying restriction period. Businesses will be paid £1,500 every 14 days.

This funding is available for businesses required to close due to restrictions that had their first full day of restrictions on or after the 9 September which means businesses required to close in tier 2 and 3 areas before the national lockdown began are eligible for the grants.

Full guidance is here.

Local Restrictions Support Grant (Open)

This grant is for businesses that are not legally required to close but which are severely impacted by the lockdown restrictions on socialising.

The government said local authorities should provide grant funding under the following tiers, unless there is a local economic need to deviate:

  • Grants of up to £934 per 28-day period for businesses occupying premises with a rateable value of exactly £15,000 or under on the date the local restrictions started.

  • Grants of up to £1,400 per 28-day period for businesses occupying premises with a rateable value over £15,000 and less than £51,000 on the date the local restrictions started.

  • Grants of up to £2,100 per 28-day period for businesses occupying premises with a rateable value of exactly £51,000 or above on the date the local restrictions started.

The government guidance says it "would expect the funding to be targeted at hospitality, hotel, bed & breakfast and leisure businesses" but "we want local authorities to exercise their local knowledge and discretion and we recognise that economic need will vary across the country. Therefore, while we are setting suggested criteria for the funding, we are allowing local authorities to determine exactly which businesses to support."

Full guidance is here.

Local Restrictions Support Grant (Sector)

This grant is for businesses that have been required to close nationally in England since 23 March 2020. Eligible businesses are:

  • Nightclubs, dance halls, and discotheques

  • Sexual entertainment venues and hostess bars

Grants are as follows:

  • Businesses occupying premises with a rateable value of exactly £15,000 or under on 5 November will receive a payment of £667 per 14-day qualifying restriction period.

  • Businesses occupying premises with a rateable value over £15,000 and less than £51,000 on 5 November will receive a payment of £1,000 per 14-day qualifying restriction period.

  • Businesses occupying premises with a rateable value of exactly £51,000 or above on 5 November will receive a payment of £1,500 per 14-day qualifying restriction period.

Subject to state aid limits, businesses will be entitled to receive a grant for each eligible hereditament per 14-day period of national restrictions that require them to close from 1 November 2020.

Full guidance is here.

Additional Restrictions Grant (ARG)

This additional funding is provided to local authorities in England for business support activities. If councils use this funding for direct business support grants, the same conditions of grant apply as for the Local Restrictions Support Grant (Closed), but they have discretion to alter the amount of funding offered to individual businesses and the frequency of payment.

Local authorities can determine how much funding to provide to businesses from the ARG funding and exactly which businesses to target. But the government is encouraging local authorities to develop discretionary grant schemes to help businesses which, while not legally forced to close, are severely impacted by the restrictions. This could businesses which supplying the retail, hospitality, and leisure sectors, businesses in the events sector and businesses outside the business rates system but are effectively forced to close such as market traders.

Local authorities can use ARG funding to provide additional support to larger local businesses which are important to the local economy, on top of the funding provided to those businesses via the LRSG (Closed) scheme.

Full guidance is here.

*** UPDATE 04/01/21: A third lockdown in England has been announced. The latest information on business grants is here ***

The latest coronavirus business support information

We are keeping you updated on the latest information on how to access the government's coronavirus business support here. You can also find advice and ask a question on Enterprise Nation's coronavirus business advice hub. Follow Enterprise Nation on Twitter too for updates.

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Dan Martin
Dan MartinDan Martin Content & Events
I'm a freelance content creator and event host who helps small businesses and the organisations that support them. I have 18 years of experience as a small business journalist having interviewed hundreds of entrepreneurs from billionaires like Sir Richard Branson to the founders behind brand new start-ups. I've worked for a range of leading small business publications and support groups, most recently as head of content at Enterprise Nation where I was responsible for the prolific output of content on the company's blog and social media. I'm based in Bristol where I run and host regular events with the local small business community and have strong connections to major business organisations in the south west region. In total, I've hosted over 50 events; from intimate meet-ups to conferences with an audience of hundreds including events for international brands like Facebook and Xero. I'm also a big fan of podcasts having hosted Enterprise Nation's Small Business Sessions as well as lots of online events including Facebook Live interviews, webinars and three live web chats from inside 10 Downing Street. With my partner, I co-run Lifestyle District, a lifestyle blog focused on culture, art, theatre and photography. I'm here to help. I'm volunteering free advice calls of up to an hour as part of the Recovery Advice for Business scheme, over the next 6 months. Please get in touch to see how I can help your business. 

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