Government announcement

Government announcementChancellor, Rishi Sunak, today announced a package of £4.6 billion in new lockdown grants to businesses in the retail, hospitality and leisure sectors.

This follows the Prime Minister’s announcement last night that these businesses will be closed until at least February half-term in order to help control the spread of the coronavirus.

The grants will be awarded on a one-off basis, worth up to £9,000 per property in a bid to help businesses through the new national lockdown in England. A further £594 million is also being made available for Local Authorities and the Devolved Administrations to support other businesses not eligible for the grants, that might be affected by the restrictions. Businesses should apply for these via their Local Authorities.

The Chancellor said: “The new strain of the virus presents us all with a huge challenge – and whilst the vaccine is being rolled out, we have needed to tighten restrictions further. Throughout the pandemic we’ve taken swift action to protect lives and livelihoods and today we’re announcing a further cash injection to support businesses and jobs until the Spring. This will help businesses to get through the months ahead – and crucially it will help sustain jobs, so workers can be ready to return when they are able to reopen.”

The one-off top-ups will be granted to closed businesses as follows:

  • £4,000 for businesses with a rateable value of £15,000 or under
  • £6,000 for businesses with a rateable value between £15,000 and £51,000
  • £9,000 for businesses with a rateable value of over £51,000

The move follows the Chancellor’s announcement at the end of last year that the furlough scheme would be extended until the end of April 2021.

More detail on the government’s support measures for businesses throughout the coronavirus pandemic can be found here.

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Zee Hussain

Director, Corporate Law

Zee is an experienced and trusted solicitor providing commercially focused advice to businesses, directors and senior executives, throughout the UK, on all aspects of employment law.

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