money cash pounds support

New analysis of government data relating to vital cash grants for small businesses has revealed that around one in four eligible SMEs have not received a COVID-19 cash grant and several local authorities have failed to distribute half of the money available to help businesses survive the crisis.

The new data shows a breakdown of Small Business Grants Fund (SBGF) scheme and the Retail, Hospitality and Leisure Business Grants Fund (RHLGF) payments made by local authorities across England as of the 3rd May 2020.

The grants were initially announced by chancellor Rishi Sunak as part of the 2020 Budget on the 11th March before the level of funding was increased on the 17th March, providing either cash grants of £25,000 or £10,000 to SMEs in specific sectors.

Advertisement | Continue story below

After more than a month of the cash grants having been announced, analysis of the latest data by Bankier Sloan Chartered Surveyors and Retail Express has disclosed that 73 per cent of the total £12.3 billion allocated to local authorities has been handed out to businesses.

According to the data, 956292 companies in the UK are expected to be eligible to receive a cash grant but only 697515 SMEs have received grants with £8.6 billion having been distributed by the 3rd May.

Out of the 314 councils listed, 30 local authorities have failed to allocate 60 per cent or more of the funding and three have not reached 50 per cent.

Ian Sloan of Bankier Sloan Chartered Surveyors had a simple message for SMEs: “Businesses should approach their local councils if they have not already made a claim or heard from their local Business Rates office.”

The five councils that have distributed the lowest percentage of their grant allocation

Local AuthorityInitial AllocationNumber of hereditaments that the local authority has identified may be in scope to receive a grant as at 3 MayNumber of grant payments made to hereditaments as at 3 MayValue of payments (£)Percentage allocated
Sandwell Metropolitan Borough Council£73,036,0005,8872,298£26,520,00039.04%
Slough Borough Council£17,988,0001,288556£8,260,00043.17%
London Borough of Haringey£56,312,0004,2661,906£31,765,00044.68%
Birmingham City Council£231,576,00018,4589,332£114,890,00050.56%
South Derbyshire District Council£15,240,0001,252652£7,690,00052.08%

Among the councils to have distributed the lowest percentages of their grant allocations is Birmingham City Council at just over 50 per cent – paying 9332 business out of a possible 18,458.

The West Midlands’ local authority also has the second-highest allocation grant funding available with £232 million and the second-highest number of SMEs potentially eligible for the vital support – Cornwall Council has the highest with £281 million and 23,828.

Cornwall Council has, in comparison, has allocated 75 per cent of its grants funding, paying 17,789 small, eligible businesses.

The five councils with the highest grant allocation to provide to businesses in England

Local AuthorityInitial AllocationNumber of hereditaments that the local authority has identified may be in scope to receive a grant as at 3 MayNumber of grant payments made to hereditaments as at 3 MayValue of payments (£)Percentage allocated
Cornwall Council£281,452,00023,82817,789£202,700,00074.66%
Birmingham City Council£231,576,00018,4589,332£114,890,00050.56%
Leeds City Council£162,244,00013,1129,869£122,105,00075.27%
City of Bradford Metropolitan District Council£135,934,00011,6628,232£92,850,00070.59%
Dorset Council£133,770,00010,3786,096£73,215,00058.74%

In an article published on the Birmingham City Council website, Birmingham City Council leader Cllr Ian Ward urged companies to take advantage of the grants.

“I won’t often write a blog where I’m desperate to hand over money, but that’s exactly what I’m doing today,” wrote Cllr Ward.

“That’s because around 5,000 Birmingham businesses could be set to miss out on grant payments designed to help them through the current challenging times.”

He continued: “5,000 businesses that are entitled to a lifeline that will hopefully ensure they are still trading after the COVID-19 lockdown.

“These businesses are missing out because they haven’t yet provided sufficient details for the Council to be able to verify and process payments.

“If you run one of these businesses, I’m urging you to please put that right.”

At the other end of the scale, 16 local authorities have given out more than 90 per cent of their COVID-19 cash grant allocation and three councils have distributed over 98 per cent.

The five councils that have distributed the highest percentage of their grant allocation

Local AuthorityInitial AllocationNumber of hereditaments that the local authority has identified may be in scope to receive a grant as at 3 MayNumber of grant payments made to hereditaments as at 3 MayValue of payments (£)Percentage allocated
Chichester District Council£37,086,0002,9732,960£35,735,00099.56%
London Borough of Ealing£68,212,0004,8704,822£66,055,00099.01%
Hyndburn Borough Council£24,558,0001,8211,791£19,485,00098.35%
Kettering Borough Council£17,922,0001,3841,337£16,250,00096.60%
Stockton On Tees Borough Council£33,456,0002,5452,368£27,610,00093.05%

The figures come as the government recently confirmed that an additional £617 million would be made available for councils to use as a discretionary fund.

Local authorities will have the power to award additional grants above and beyond its initial allocation, with a percentage of the extra funding aimed specifically at businesses in shared spaces, regular market traders and small charity properties.

https://i0.wp.com/thiis.co.uk/wp-content/uploads/2020/04/money-cash-pounds-support.jpg?fit=900%2C600&ssl=1https://i0.wp.com/thiis.co.uk/wp-content/uploads/2020/04/money-cash-pounds-support.jpg?resize=150%2C150&ssl=1Calvin BarnettCoronavirus NewsCOVID-19 Sector NewsCOVID-19 Trade NewsGovernment & Local AuthoritiesInvestments & FundingNewsroomReports & ResearchRetailer NewsTrade NewsBankier Sloan Chartered Surveyors,Birmingham City Council,cash grant,coronavirus,Councils,COVID-19,local authorities,pandemic,retail hospitality and leisure business grant fund,Rishi Sunak,small business grant fund schemeNew analysis of government data relating to vital cash grants for small businesses has revealed that around one in four eligible SMEs have not received a COVID-19 cash grant and several local authorities have failed to distribute half of the money available to help businesses survive the crisis.The new...News, views & products for mobility, access and independent living professionals