What is it?
The Local Restrictions Support Grant (LRSG) supports businesses in England that are required to close due to local or national restrictions.
Eligible businesses are entitled to a cash grant from their local council for each 14 day period they are closed.
Who is it for?
Your business may be eligible if it:
- is based in England
- occupies property on which it pays business rates (and is the ratepayer)
- is in an area of local Tier 2 or Tier 3 restrictions and has been required to close because of local restrictions that resulted in a first full day of closure on or after 9 September
- has been required to close for at least 14 days because of the restrictions
- has been unable to provide its usual in-person customer service from its premises
For example, this could include pubs and restaurants that operate primarily as an in-person venue, but which have been forced to close those services and provide a takeaway-only service instead.
Eligible businesses can get one grant for each non-domestic property within the restriction area.
Local councils may at their discretion also provide funding for businesses that don’t pay business rates.
Devolved Administrations will receive Barnett consequentials which they could use to establish similar schemes but are not eligible for this scheme.
You must notify your local council if your situation changes and you no longer meet the eligibility criteria. See the gov.uk website for more information on eligibility.
How does it work?
The grant will be based on the rateable value of the property on the first full day of local restrictions.
Business premises forced to close in England can apply to receive grants worth up to £3,000 per month under the Local Restrictions Support Grant. Additionally, £1.1bn is being given to Local Authorities, distributed on the basis of £20 per head, for one-off payments to enable them to support businesses more broadly.
The Businesses required to close will be eligible for the following:
- For properties with a rateable value of £15k or under, grants to be £1,334 per month, or £667 per two weeks;
- For properties with a rateable value of between £15k-£51k grants to be £2,000 per month, or £1,000 per two weeks;
- For properties with a rateable value of £51k or over grants to be £3,000 per month, or £1,500 per two weeks.
The grant will be extended to cover each additional 14-day period of closure. If your business is closed for 28 days, or 2 payment cycles, it will receive £1,334, £2,000 or £3,000, depending on the rateable value of the property.
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.
Critchleys Clients: If you have specific questions, please contact your Critchleys Accountant directly.
First published 2 November 2020
Last Updated 2 November 2020
2 November 2020
Find out more about Jen Sewell