Businesses hit by local lockdowns to receive grants

Businesses in England that are required to shut due to local lockdowns will now be able to claim up to £1,500 per property every three weeks, the Government has announced.

Chief secretary to the Treasury, Steve Barclay, announced the new funding plan yesterday (10 September) as part of ongoing efforts to support businesses impacted by Covid-19.

To be eligible for the grant, a business must have been required to shut their doors due to local Covid-19 restrictions. 

The largest businesses will receive £1,500 every three weeks they are required to close, while smaller businesses will receive £1,000.

Payments will be triggered by a national decision to close businesses in any “high incidence” areas across England. 

Each payment will be made for a three week lockdown period, while each new three week lockdown period triggers an additional payment.

Barclay said: “These grants provide businesses with a safety net as they temporarily close their doors to help save lives in their local areas.

“As local economies eventually and carefully re-open after local interventions, our Plan for Jobs is there waiting to help businesses get back on their feet, protect jobs and thrive in the future.”

Business secretary Alok Sharma said: “No business should be punished for doing the right thing, which is why today’s package will offer additional breathing space for businesses that have had to temporarily close to control the virus.

“Through our wider Plan for Jobs, we will continue to back our innovators and job creators across the country who are playing a critical role as we build back better from the pandemic.”

The Federation of Small Businesses’ (FSB) national chairman Mike Cherry added: “Though a lot of firms have now been able to reopen, thousands are still impacted by local lockdowns.

“That’s why this intervention is so critical – throwing a much needed additional financial lifeline to those most harmed. We look forward to working together with local government to make sure there is a straightforward process for all firms affected.”