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