Update from Government on C-19 business funding over winter
Today, the Chancellor, Rishi Sunak, announced further new measures for businesses affected by the latest COVID-19 restrictions, with the new tiering system in England, a similar system to be rolled out in Scotland from 2nd November, and Wales and Ireland experiencing their own national and local lockdowns.
Here is a run down of the new measures and funding now in place for all businesses who have to close due to new restrictions or who are open for business but have limited trading hours:
Update to grant funding ( England only) - Local Restrictions Support Grant
Tier 2 businesses: open but restricted trading
This measure is targeted at businesses who while not forced to close, experience falls in trading volume as a result of restrictions.
Direct cash grants from local authorities, who have power to flex the level of funding, equivalent to £2,100 grant funding for each 1 month period to hospitality, hotel, B&B, and leisure businesses in their area.
There will also be additional funding for businesses that don’t fit neatly into a single category
These new Tier 2 grants will be retrospective, backdated to August
The grants will be up to £2,100 a month with the level of support varying based on the rateable value of the business’s premises, so:
For properties with an RV of £15k or under, grants of £934 per month
For properties with an RV of £15k or under, grants of £934 per month
For properties with an RV of between £15k-£51k, grants of £1,400 per month
Tier 3 means businesses that need to legally close are able to:
claim £3,000 a month. This is an improvement from up to £1,500 per three weeks.
They are also eligible to receive the payment sooner, after only two weeks of closure, rather than three
MORE DETAILS HERE
Update to business support grant funding (Scotland only)
5 Central belt board areas of Scotland are at highest level of restrictions, where hospitality is currently closed
Extension of the closure period to 2nd November, with a total of 3 weeks of closure without trading
For these businesses who are closed or who are affected directly by hospitality closures, such as supply chain businesses, will receive one off grants for the whole 3 week period, of up to £4,310 as part of the COVID-19 Restrictions Fund
For businesses that remain open but are directly impacted by the restrictions over this 3 week period can access the hardship fund grant up to £2,155
MORE DETAILS HERE
Changes to the Job Retention Scheme (national coverage)
For those businesses who have to close due to local or regional restrictions can apply for the Job Support Scheme, even if they did not make use of the furlough scheme and government will cover the full cost of 2/3 of employees’ salaries, who can’t work for a week or more
Businesses that can open but still hugely affected by current covid-19 environment, will see a change to their The Job Support Scheme claims to keep staff on rather than make them redundant
Originally the scheme required staff to work 33% of their usual hours to receive the grant funding, now they only need to work 20% of hours
Originally employers contribution to keep staff on part time and pay 33% of their salaries, now only pay 5% of the total 2/3 of wages received by an employee
Self Employed Income Support Scheme (SEISS) - changes
There are 2 new tranches of the SEISS scheme, the first scheme opening in November
Originally, these 2 tranches were the equivalent of 20% of usual salaries
The chancellor confirmed that this will now increase to 40% for both tranches
The maximum grant will increase from £1,875 to £3,750.
MORE DETAILS HERE
