The government has released its guidance on the much-vaunted Restart Grants to support businesses in non-essential retail, hospitality, leisure, personal care and accommodation sectors.
The one-off grant was announced in March and is to assist in re-opening safely as Covid-19 restrictions are lifted over the coming weeks. Any eligible businesses will be paid a one-off grant based on their rateable value (RV) and which strand their business falls into:
Strand One – Non-essential retail with a qualifying business in the rating list on 1 April 2021
- £2,667 for businesses with a rateable value of £15,000 or under
- £4,000 for businesses with a rateable value of between £15,000 and £51,000
- £6,000 for businesses with a rateable value of over £51,000
Strand Two – Hospitality, Accommodation, Leisure, Personal Care and Gyms with a qualifying business in the rating list on 1 April 2021
- £8,000 for businesses with a rateable value of £15,000 or under
- £12,000 for businesses with a rateable value of between £15,000 and £51,000
- £18,000 for businesses with a rateable value of over £51,000
It will apply to those ratepayers based in England, trading on 1 April 2021, and in the non-essential retail, hospitality, accommodation, leisure, personal care or gym sectors. Excluded businesses are those that are already in administration, insolvent, struck off or have exceeded the subsidy allowance (state aid) limits.
Local authorities will be responsible for determining whether businesses meet the eligibility criteria for this scheme and which strand they fall within.
Any changes to the rating list after 1 April 2021 should be ignored for the purposes of eligibility. Subject to subsidy allowance (state aid) conditions, businesses will be entitled to receive a grant for each eligible hereditament.
The full guidance is here: Restart Grant: guidance for local authorities (publishing.service.gov.uk)
Local authorities will use the criteria to assist in decision-making as well as their local knowledge for determinations. If a business potentially falls into both funding strands, then the decision will be based on which category makes up 50% or more of their overall business. Businesses will have to declare their main service, with LA’s exercising discretion ovetr eligibility.
Be aware that applications close on 30 June 2021 and final payments will be made by 31 July 2021.