Lockdown Grant for 2021

What is it?

A one-off top-up grant for retail, hospitality and leisure businesses worth up to £9,000, per property, to help businesses through to Spring 2021.

This grant is in addition to the £1.1 billion further discretionary grant funding for Local Authorities, Local Restriction Support Grants worth up to £3,000 a month and an extension of the furlough scheme.

Who is it for?

A business may be eligible if it:

• is based in England
• occupies property on which it pays business rates (and is the ratepayer)
• has been required to close because of the national lockdown from 5 January 2021 onwards, or between 5 November and 2 December 2020
• has been unable to provide its usual in-person customer service from its premises

How does it work?

Grants for the period 5 January to 31 March 2021 will be based on the rateable value of the property on 5 January 2021.

First payment cycle: 5 January to 15 February 2021

The first payment cycle covers 5 January to 15 February 2021:

• if your business has a property with a rateable value of £15,000 or less, you may be eligible for a cash grant of £2,001 for this 42-day qualifying restrictions period
• if your business has a property with a rateable value over £15,000 and less than £51,000, you may be eligible for a cash grant of £3,000 for this 42-day qualifying restrictions period
• if your business has a property with a rateable value of £51,000 or above, you may be eligible for a cash grant of £4,500 for this 42-day qualifying restrictions period

You will also be eligible for the one-off Closed Businesses Lockdown Payment, which your local council should pay together with the grant from the first payment cycle of this scheme.

Second payment cycle: 16 February to 31 March 2021

The second payment cycle covers 16 February to 31 March 2021:

• if your business has a property with a rateable value of £15,000 or less, you may be eligible for a cash grant of £2,096 for this 44-day qualifying restrictions period
• if your business has a property with a rateable value over £15,000 and less than £51,000, you may be eligible for a cash grant of £3,143 for this 44-day qualifying restrictions period
• if your business has a property with a rateable value of £51,000 or above, you may be eligible for a cash grant of £4,714 for this 44-day qualifying restrictions period

Grants for the period 5 November to 2 December 2020 will be based on the property's rateable value on 5 November 2020.

• If your business has a property with a rateable value of £15,000 or less, you may be eligible for a cash grant of £1,334 for the 28-day qualifying restrictions period.
• If your business has a property with a rateable value over £15,000 and less than £51,000, you may be eligible for a cash grant of £2,000 for the 28-day qualifying restrictions period.
• If your business has a property with a rateable value of £51,000 or above, you may be eligible for a cash grant of £3,000 for the 28-day qualifying restrictions period.

In England, 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 new domestic subsidy allowance for the COVID-19 business support grants took effect on 4 March 2021. Applications made before that date are subject to the previous rules. Three subsidy allowances cover this scheme. Grants under these three allowances can be combined for a potential total allowance of up to £10,935,000 (subject to exchange rates):

• Small Amounts of Financial Assistance Allowance – you are allowed up to £335,000 (subject to exchange rates) over any period of 3 years
• COVID-19 Business Grant Allowance – you are allowed up to £1,600,000
• COVID-19 Business Grant Special Allowance - if you have reached your limits under the Small Amounts of Financial Assistance Allowance and COVID-19 Business Grant Allowance, you may be able to access a further allowance of funding under these scheme rules of up to £9,000,000, provided certain conditions are met

The grant will be based on the rateable value of the property on the first full day of lockdown.

Information on the support businesses in Scotland, Wales and Northern Ireland can receive via this grant can be found on the gov website. 

What should I do next?

Visit your local council’s website to find out how to apply. You can find the website for your local council here.

The deadlines to apply for the national lockdown LRSG (Closed) Addendum schemes are:

You must notify your local council if your situation changes and you no longer meet the eligibility criteria.

Critchleys Clients: If you have specific questions, please contact your Critchleys Accountant directly.

First published 6 January 2021
Last Updated 16 March 2021

16 March 2021
The deadlines to apply for the national lockdown LRSG (Closed) Addendum schemes are:

6 January 2021
First published. 

Find out more about Jen Sewell