Businesses who are forced to close under the second national lockdown, which comes into force on Thursday, will be entitled to a new grant up to £3,000 a month, the Government has announced.
Earlier this year, grants of £10,000 and £25,000 were distributed to Island businesses effected by the lockdown – including those who kept trading throughout the first few months of the pandemic. Now, as the country prepares to enter into a second lockdown of sorts, further financial support has been confirmed.
Those forced to closed their doors will receive grants worth up to £3,000 per month under the Local Restrictions Support Grant (LRSG).
Effected businesses will be eligible for the following:
- For properties with a rateable value of £15,000 or under, grants to be £1,334 per month – or £667 per 2 weeks
- For properties with a rateable value of between £15,000-£51,000 grants to be £2,000 per month, or £1,000 per 2 weeks
- For properties with a rateable value of £51,000 or over grants to be £3,000 per month, or £1,500 per 2 weeks
Chancellor Rishi Sunak said:
“Over the past eight months of this crisis we have helped millions of people to continue to provide for their families. But now – along with many other countries around the world – we face a tough winter ahead.
“I have always said that we will do whatever it takes as the situation evolves. Now, as restrictions get tougher, we are taking steps to provide further financial support to protect jobs and businesses. These changes will provide a vital safety net for people across the UK”.
Furlough Scheme
The Coronavirus Job Retention Scheme (CJRS) – also known as the furlough scheme – will also now remain open until December, with employees receiving 80% of their current salary for hours not worked, up to a maximum of £2,500.
Under the extended scheme, the cost for employers of retaining workers will be reduced compared to the current scheme, which ended on Saturday. This means the extended furlough scheme is more generous for employers than it was in October.
Businesses will have flexibility to bring furloughed employees back to work on a part time basis or furlough them full-time, and will only be asked to cover National Insurance and employer pension contributions which, for the average claim, accounts for just 5% of total employment costs.
The Job Support Scheme, which was scheduled to come in on Sunday 1st November, has been postponed until the furlough scheme ends.
Mortgage Holidays
To give homeowners peace of mind too, mortgage holidays will continue.
Borrowers who have been impacted by coronavirus and have not yet had a mortgage payment holiday will be entitled to a 6 month holiday, and those that have already started a mortgage payment holiday will be able to top up to 6 months without this being recorded on their credit file.
The FCA will announce further information later on today.
Will ‘business closures’ include Furnished Holiday Lets in the Leisure & Tourism sector as they did in the first grants paid out in March?
I’d love to know the answer to that too!
To those who regretfully obeyed the first time round, this is your chance to make it right and tell the Government we will not be locked away again.
Must be wonderful to have an infinite money-tree.
When and where can you apply for this new grant
Adrian
No doubt the council will get a heavy pay cheque, another pay rise on the cards
Why are the grants for businesses less than 1/3 of the £10000 awarded during the first lockdown. My business a gym comes under the 0 to 15000 rateable value £1340 per month. Does not even cover my rent. A total insult!
I’m in exactly the same position.Same business same problem We’re covid secure and contributing to the prevention of the virus, fitness health and wellbeing….But go and eat as many takeaways as you like. Thanks Boris!
Your not the only one I’m in the same boat and so are many others but what’s the answer
I feel like I’m on fire and someone just handed me a shot glass of water!
My shop rent is £3000 a month , it’s a joke won’t even cover my rent payment. Tramp
£1334 to close my business for a month? total and utter “kick in the Bo##ocks” thanks for F##k All Rishi, but im glad you look so pleased about it all,
AFFECTED*!!
such a joke..they need to issue grants same as in the first lockdown. As a restaurant not even enough for the money £3000 a month.
You will still have to pay it back so its totally not fit for purpose! The business rates need stopping to help these businesses out so councils stop the business rates for the period of shutdown its not the business owners doing!
A grant you dont pay back but a loan you do