In a welcome announcement yesterday, Rishi Sunak revealed new changes to the Local Restriction Support Grants (LRSG). The changes will re-establish more practical support for businesses adversely affected by COVID-19.

Cash Grants for businesses severely disrupted by Tier Two restrictions in England

Additional government funding is being provided to local authorities to support businesses in Tier Two lockdown. These will be businesses that are not legally closed but which are severely impacted by restrictions on socialising. The changes will be welcomed by affected concerns in the hospitality sector, which will now receive 70% of the grants paid to businesses legally closed.

Benefits for Tier Two businesses 

Grants available will be based on the rateable value of business premises:

  • The rateable value of £15,000 or under, grant of £934 per month
  • The rateable value between £15,000 and £51,000, grant of £1,400 per month
  • The rateable value above £51,000, grant of £2,100 per month.

Claims can be back-dated to the point at which these restrictions began.

Affected businesses should contact their Local Authority to determine the amount and date that they should start to receive this additional support.

Possible support for businesses not in the business rates system

Local Authorities in England are also being funded – a 5% top-up – to help businesses affected by partial lockdown who may not be registered with rated business premises. Affected companies should contact their local authority to see if funding will be made available.

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