Issue details

Additional Restrictions Grant - business recovery programme - amendments to mitigate impact of extended lockdown

Eligible businesses have received a “Restart Grant” from either the LRSG or the ARG funds. Available from 1st April 2021, this support was designed to mitigate the impact of the continuing restrictions and prepare businesses for reopening as restrictions gradually lifted.

On 14th June 2021 the government delayed the full relaxation of the existing COVID19 restrictions until at least the 19th July 2021. This has effectively extended the period of significant trading restrictions for a large number of businesses in specific sectors including, but not limited to: nightclubs, theatres, the travel and tourism sector, events industries, and wedding industries.

The government has promised to review the lifting of restrictions but there is the potential for a further extension of the restrictions impacting these businesses and, in the case of foreign travel, policy decisions regarding British citizen travel will be made by individual foreign governments.

The council have received queries from businesses, who continue to be impacted by the COVID19 restrictions, about the availability of additional financial support. Government has not allocated any additional funding to compensate businesses in this situation but has made it clear that local authorities have the ability and discretion to make payments using the ARG funds.

Officers have identified approximately 30 businesses, already in receipt of ARG restart funding, who could be impacted by the delay in lifting restrictions. These are primarily in the travel or tourism sector but also businesses such as events, mobile bars, and mobile performers. This figure could rise as more ARG applications are received.

It is more difficult to identify impacted businesses in receipt of LRSG funds as the information is primarily held on the premises and not the business, and there has been no application process. Officers have received queries from approximately 20 businesses, who consider themselves impacted by the delay in lifting restrictions, regarding additional financial support. Again this figure could rise depending on businesses coming forward.

To address the ongoing impact on these businesses, until the restrictions have been fully lifted, it is proposed that the council make an additional payment to impacted and eligible businesses from the remaining ARG funding. To be eligible businesses must:
• have received a verified LRSG or ARG grant;
• continue to have their reopening significantly impacted by the delay in lifting the COVID19 restrictions, and;
• be one of the following types of business: travel agent or tour operator, event or wedding venue, performer, mobile bar or catering serving events or weddings, theatre, or nightclub. Other businesses may be added to this list at the discretion of the Head of Economic Development or Head of Corporate Finance.

In exceptional cases the council will consider providing support to a business significantly impacted by the delay in lifting restrictions who is not one of the business types listed above or who has not previously received support. These cases will be approved by either the Head of Economic Development or the Economic Development Manager in consultation with the Head of Corporate Finance.

For businesses currently in receipt of ARG funds, it is proposed to pay an additional payment equal to the Discretionary Restart Grant (DRG) payment they received. Payments will be between £1,334 and £8,000 depending on the scale of loss and number of employees within the business.

For businesses currently in receipt of LRSG funds, it is proposed to make a payment equal to the Restart Grant payment they received. Payments will be between £2,667 and £18,000 depending on the rateable value of the hereditament.

In exceptional circumstances the Head of Economic Development in consultation with the Head of Corporate Finance has the authority to vary payments to businesses.

As a scheme targeted at existing applicants an application process will not be required however proof of trading checks will be required and, to comply with the government’s ARG criteria the Council will need to ensure it holds the following information for each business:
a) Name of business
b) Business Trading Address including postcode
c) Unique identifier
d) High level SIC Code
e) Nature of Business
f) Date business established
g) Number of employees
h) Business rate account number (if applicable)
i) Cumulative total of previous funding received under all COVID-19 grants schemes

Businesses not currently in receipt of either ARG or Restart funds will be signposted via the council COVID business support webpages to the business@ email address where they will be asked to outline how they have been impacted by the delay in lifting restrictions.


Decision type: Non-key

Decision status: Recommendations Approved

Notice of proposed decision first published: 01/07/2021

Decision due: 1 July 2021 by Director of Economy and Place (Historic)

Contact: Nick Webster, Economic development manager Email: nwebster@herefordshire.gov.uk Tel: 01432 260601.

Decisions