MORE than 600,000 retail, hospitality and leisure sites across the UK will be able to claim a one-off grant of up to £9,000, the UK Government has announced in a £4.6 billion aid package aimed at helping British businesses get through the latest lockdowns.
Rishi Sunak also announced a further £594 million for local authorities and devolved administrations to support businesses not eligible for the grants.
The new money will mean the Scottish Government will receive £375m, the Welsh Government £227m and the Northern Ireland Executive £127m.
READ MORE: Coronavirus: Boris Johnson calls on nation to "pull together" following latest lockdown
The Chancellor said: “The new strain of the virus presents us all with a huge challenge and, whilst the vaccine is being rolled out, we have needed to tighten restrictions further.
“Throughout the pandemic we’ve taken swift action to protect lives and livelihoods and today we’re announcing a further cash injection to support businesses and jobs until the spring.
“This will help businesses to get through the months ahead and, crucially, it will help sustain jobs, so workers can be ready to return when they are able to reopen.”
The payments will be based on the size of each store, pub, cafe or hotel tied into the business rates typically paid by each business. The smallest sites will be able to claim up to £4,000 and medium-sized ones £6,000.
However, the Chancellor stopped short of extending the business rates holiday, which ends in April, despite calls from retail and hospitality leaders for such a move.
Other noticeable absences being called for by business groups and unions include a VAT cut and improvements to sick pay or support for working parents.
READ MORE: Nicola Sturgeon - 'No reason' for Scottish Parliament election to be delayed
On Monday night, Helen Dickinson, Chief Executive of the British Retail Consortium, said: “The biggest difference the Government can make is to extend business rates relief from April for those hardest hit by repeated lockdowns.”
According to real estate specialists Altus Group, 401,690 non-essential shops, 64,537 pubs/restaurants, 20,703 personal care facilities and 7,051 gyms and leisure centres are now closed.
The new one-off grants come in addition to grants worth up to £3,000 for closed businesses, and up to £2,100 per month for impacted businesses once they reopen.
The UK Government has already provided £1.1bn of discretionary funding for local authorities, extended the furlough scheme until April and taxpayer-backed business loans until March.
Roger Barker, Director of Policy at the Institute of Directors, said: “This new grant package is welcome and will go some way to reassuring the worst affected businesses.
“We are particularly pleased the Treasury has taken on board our recommendation to increase the discretionary local authority grant fund. This policy has helped to reach those who haven’t been able to access other support. The Government should be prepared to top up the fund if necessary.”
He added: “The Chancellor must remain wary of a Spring cliff-edge in business support as the furlough scheme and other support measures unwind.
“Businesses will also be keen for the Government to continue setting out its plans for the vaccine roll-out, to support their planning. The path of the virus is extremely uncertain, and Government must be agile in its response to prevent lasting economic damage.”
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules hereLast Updated:
Report this comment Cancel