Rishi Sunak confirms £594m fund to support business impacted by new lockdown rules
Chancellor Rishi Sunak has announced new multi-billion-pound funding for businesses affected by the national lockdown.
A £594 million discretionary fund has been made available by the Treasury to support businesses impacted by the nationwide lockdown. Announced on the 5th January by Rishi Sunak, this multi-million-pound fund comes alongside £4.6 billion in new lockdown grants to support businesses and protect jobs.
As part of the £4.6 billion funding, businesses in the retail, hospitality and leisure sectors are to receive a one-off grant worth up to £9,000. This follows Boris Johnson’s announcement that these businesses will be closed until at least mid-February in order to help control the virus. The Treasury says that these grants will provide them with certainty through the spring period.
However, these grants are only available for businesses that are being forced to close under the new lockdown rules, as the Treasury states: “Any business which is legally required to close, and which cannot operate effectively remotely, is eligible for a grant.”
Following clarification from the BHTA and the UK Government in November 2020, mobility stores are officially classed as ‘essential’ retailers, so are not forced to close during the lockdown. This means that mobility retailers will not have access to the £9,000 grants but might have access to the £594 million discretionary fund.
This discretionary fund is being made available for local authorities and the Devolved Administrations to support other businesses not eligible for the grants, that might be affected by the restrictions. Businesses are being advised to apply to their local authority for the fund.
Chancellor Rishi Sunak 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 new funding announced today comes in addition to billions of existing business support, including grants worth up to £3,000 for closed businesses and up to £2,100 per month for impacted businesses once they reopen.
The government has also provided £1.1 billion existing discretionary funding for local authorities, the furlough scheme now extended to Apri and 100 percent government backed loans, extended until March.https://thiis.co.uk/rishi-sunak-confirms-594m-fund-to-support-business-impacted-by-new-lockdown-rules/https://i2.wp.com/thiis.co.uk/wp-content/uploads/2020/09/Rishi-Sunak-unioon-leaders-wage-subsidary-scheme.jpg?fit=900%2C618&ssl=1https://i2.wp.com/thiis.co.uk/wp-content/uploads/2020/09/Rishi-Sunak-unioon-leaders-wage-subsidary-scheme.jpg?resize=150%2C150&ssl=1Government & Local AuthoritiesInvestments & FundingNewsroomRetailer NewsSector NewsTrade News£4.6 billion business fund,£594 million fund,business funding,mobility retailers,mobility shops,mobility stores,retailer funding,Rishi Sunak,treasuryChancellor Rishi Sunak has announced new multi-billion-pound funding for businesses affected by the national lockdown.A £594 million discretionary fund has been made available by the Treasury to support businesses impacted by the nationwide lockdown. Announced on the 5th January by Rishi Sunak, this multi-million-pound fund comes alongside £4.6 billion...Sarah SarsbySarah Sarsbysarah@thiis.co.ukAdministratorTHIIS Magazine