Government support for businesses
Local Restrictions Support Grant for businesses that closed from 5 November 2020
Following the Prime Minister’s announcement on Saturday 31 October 2020 regarding a national lockdown from Thursday 5 November 2020 - Wednesday 2 December 2020 additional grant funding has been made available to those businesses that have been unable to trade and are forced to close during the additional restrictions.
During this period a single grant to cover the four-week period will be paid to each eligible business. The grant amounts will be fixed. Businesses with more than one qualifying property will receive more than one grant.
The rate of payment for eligible businesses will be:
- For properties with a rateable value of £15k or under, grants to be £1,334 per four weeks;
- For properties with a rateable value of over £15k and below £51k, grants to be £2,000 per four weeks;
- For properties with a rateable value of £51k or over, grants to be £3,000 per four weeks
If you have been able to continue to trade during the Lockdown period you will not be eligible to receive grant funding.
Local Restrictions Support Grant
NOTE: Grant payments will not be paid for 28 days. Please do not reapply in this time as duplicate applications will cause delays.
Furlough Scheme Extended and further economic support announced
In light of the increased restrictions the UK government is introducing additional economic and business support measures:
The Coronavirus Job Retention Scheme: The Coronavirus Job Retention Scheme, also known as the furlough scheme, has been extended to December 2020.
- Which employees you can put on furlough to use the Coronavirus Job Retention Scheme
- If you can claim for your employees’ wages using the Coronavirus Job Retention Scheme
- What steps you need to take before calculating your claim
- Find out how much you can claim.
- For information on claiming for wages through the scheme you can visit the gov.uk website.
The Job Support Scheme will not be introduced until after Coronavirus Job Retention Scheme ends.
Self-Employment Income Support Scheme Grant Extension: The grant is being extended from 1 November 2020. The grant will be increased from the previously announced level of 40% of trading profits to 80% for November 2020. Find out if you are eligible and how much you can get on the gov.uk website.
Business grant policy is fully devolved. Devolved Administrations will receive Barnett consequentials which they could use to establish similar schemes.
Loan schemes: application deadlines extended to January 31 2021: The application deadlines for the Coronavirus Bounce Back Loan, Coronavirus Business Interruption Loan, Coronavirus Large Business Interruption Loan Scheme and Coronavirus Future Fund have been extended until 31 January 2021.
Repay Eat Out to Help Out Scheme payments to avoid a penalty. Find out how to pay back all or some of the payments your business claimed if you have overclaimed when taking part in the Eat Out to Help Out Scheme.
Self-employment income support scheme
The Government is continuing its support for millions of self-employed individuals by extending the Self Employment Income Support Scheme Grant (SEISS).
An initial taxable grant will be provided to those who are currently eligible for SEISS and are continuing to actively trade but face reduced demand due to coronavirus.
The initial lump sum will cover three months’ worth of profits for the period from November to the end of January next year.
This is worth 20% of average monthly profits, up to a total of £1,875. An additional second grant, which may be adjusted to respond to changing circumstances, will be available for self-employed individuals to cover the period from February 2021 to the end of April.
Tax cuts and deferrals
The temporary 15% VAT cut for the tourism and hospitality sectors will be extended to the end of March next year. In addition, business who deferred their VAT bills will be given more breathing space through the New Payment Scheme, which gives them the option to pay back in smaller instalments. Self-assessment taxpayers will be able to benefit from a separate additional 12-month extension from HMRC on the “Time to Pay” self-service facility, meaning payments deferred from July 2020, and those due in January 2021, will now not need to be paid until January 2022.
Giving businesses flexibility to pay back loans
- Businesses who took out a Bounce Back Loan will be given the option to repay their loan over a period of up to ten years through a new Pay as You Grow flexible repayment system. Interest-only periods of up to six months and payment holidays will also be available to businesses.
- Coronavirus Business Interruption Loan Scheme lenders will be given the ability to extend the length of loans from a maximum of six years to ten years if it will help businesses to repay the loan.
- The government is extending four temporary loan schemes to 30 November 2020 for new applications: As a result, more businesses will now be able to benefit from the Coronavirus Business Interruption Loan Scheme, the Coronavirus Large Business Interruption Loan Scheme, the Bounce Back Loan Scheme and the Future Fund.
On 16 September, the government extends support to stop business evictions this year: Commercial tenants will be protected from the risk of eviction until the end of 2020 helping businesses to protect jobs. Find out more on the gov.uk website.
Royal Dock’s Internship Programme
In support of the Mayor of Newham’s community wealth building (CWB) agenda, the Royal Docks Enterprise Zone (RDEZ) is partnering with local organisations to create high-quality internship opportunities for local young people. As part of its flagship internship programme, the Enterprise Zone will be subsidising the salary of interns by up to 50% and is currently looking for host employers to join the programme.
We would like businesses from a range of industries to get involved by creating placements within their organisations, helping give young people critical and creative insight into their business and providing them with the skills and experience they need to progress their career.
The programme will:
- Support the culture of enterprise for residents in the Royal Docks area.
- Raise the aspirations of local residents, particularly the under- and unemployed.
- Increase young people’s (18-30) access to and awareness of the various sectors that exist within the Royal Docks.
- Improve representation of young people within the target sectors and industries.
- Equip local young people with the skills, experience and knowledge they need to secure sustainable employment within these sectors.
- Create more youth employment opportunities in response to the economic impact of Covid-19.
- Talented intern(s) placed in your organisation for 12 months.
- Up to 50% of Intern(s) salaries subsidised by RDEZ (interns will be paid the London Living Wage at £10.75).
- One-to-one support from the RDEZ at every stage.
- Involvement in the recruitment and selection process to ensure the Intern(s) are a good match to your organisation.
- The opportunity to be part of a network of likeminded CWB Partners.
- Professional development for staff within your organisation.
- Interns will also benefit from training, mentoring and careers coaching to supplement the work experience they gain whilst working in your organisation.
Interested in finding out more?
Email us at [email protected]
The government has introduced a new Kickstart Scheme in Great Britain, a £2 billion fund to create hundreds of thousands of high quality six month work placements aimed at those aged 16 to 24 who are on Universal Credit and are deemed to be at risk of long term unemployment.
Funding available for each job will cover 100% of the relevant National Minimum Wage for 25 hours a week, plus the associated employer National Insurance contributions and employer minimum automatic enrolment contributions.
- If you are an employer looking to create job placements for young people, check if you can apply for funding as part of the Kickstart Scheme.
- If you are considering becoming a representative for a group of employers, check what information you need to provide to apply for a grant through the Kickstart Scheme.
You can find more information here: