The second lockdown: LRSG grant support for businesses

Businesses in England that are forced to close or are severely impacted as part of the second lockdown, will be able to access the recently extended Local Restrictions Support Grant (LRSG) scheme.

What is the extended LRSG scheme?

We refer you back to our update sent last week here: http://www.richardsonswift.co.uk/news-and-comment/coronavirus-local-restrictions-support-grant-update. This included details of increased grant amounts for businesses forced to close as part of Tier 3/national lockdowns, and extended support to businesses in Tier 2/national lockdowns, which are not forced to close, but which are severely impacted by restrictions over socialising.

What’s new?

Following the government’s weekend announcement that England is to go into a “temporary” lockdown from 5 November 2020 until at least 2 December 2020, all rate paying businesses that are required to close for this period will be able to contact their Local Authority to apply for the grants below (which are based on the previous Tier 3 figures).

What you should get

  • If your business is eligible and has a property with a rateable value of less than £51,000, you will receive a cash grant of £1,000 for each 3-week period your business is closed.
  • If your business is eligible and has a property with a rateable value of £51,000 or above, you will receive a cash grant of £1,500 for each 3-week period your business is closed.
  • The grant will be extended to cover each additional 3-week period, so if your business is closed for 6 weeks it will receive £2,000 or £3,000, depending on the rateable value of the property.

It’s worth noting that the claim periods appear to have reverted back to the original 3-weeks, as per when the scheme was first launched. This is a change from the 2-week period that had been announced recently and which we mentioned in our last update.

Key points

  • Grants will be based on the rateable value of the property on the first full day of local lockdown restrictions.
  • Eligible businesses will get one grant for each property liable for business rates within the lockdown zone.
  • Businesses that are required to close, but do not pay business rates, may be eligible for funding at the discretion of the Local Authority, as may businesses not required to close, but which are severely impacted.

Further guidance

It is expected that more detailed guidance on the LRSG extensions will be published within the next week and we will update further when this is available. In the meantime, the latest scheme information can be found on the government website here: https://www.gov.uk/guidance/check-if-youre-eligible-for-the-coronavirus-local-restrictions-support-grant.

Please visit your Local Authority’s website for eligibility criteria and to find out how to apply.

For further information or advice on any of the issues raised, or for help with services like bookkeeping, cash flow management or payroll during the Coronavirus pandemic, please call us on 01225 325580, email info@richardsonswift.co.uk, or contact your usual client director.

Please note that this is only a summary of the main issues and should not be construed as advice. Every effort has been made to ensure factual accuracy at the time of publication (4 November 2020), however, the government response to the Coronavirus situation is changing 24-7, so it should not be relied upon completely.