Government financial support for business
Following COVID-19 restrictions placed on London Borough of Newham from 17 October 2020 onwards, central Government has provided the council with funding for grant payments to support those businesses impacted by the restrictions. The two main grants are:
Local Restrictions Support Grant (LRSG)
There are a number of different grants available, which vary according to changes in tiered restrictions. Please visit our Local Restrictions Support Grant (LRSG) page to see an overview of grants available and the dates these are available.
Additional Restrictions Grant (ARG)
The government recognises that some businesses that were required to close because of COVID-19 do not directly pay business rates and therefore won’t be covered by the Local Restrictions Support Grant (LRSG) scheme and that others will not have been forced to close but will be significantly financially impacted.
Local authorities have therefore each been allocated an Additional Restrictions Grant (ARG), which will cover businesses not covered by LRSG. Funding can cover one or more of the following areas:
Direct grants to business
Business support e.g. advice and guidance for businesses, and skills training to support their ability to trade in changed circumstances.
A total of £10.1m of ARG has been given to the Council to cover the period up until March 2022. This is a single lump sum and the Council will receive no further amount.
For more on Additional Restriction Grant, please visit our Additional Restrictions Grant page.
Please see the following government guidance on support grants below:
- You can check if your business is eligible for a coronavirus grant due to national restrictions (for closed businesses) on the gov.uk website.
- You can check if you're eligible for the coronavirus Local Restrictions Support Grant (for open businesses) on the gov.uk website.
- You can check if you're eligible for the coronavirus Additional Restrictions Grant on the gov.uk website.
- You can check if your nightclub, dance hall or adult entertainment business is eligible for a coronavirus grant due to national restrictions on the gov.uk website.
Further economic support announced
In light of the increased restrictions, the government has introduced 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 until 30 September 2021. Find out more about how the scheme is changing.
You can no longer submit claims for claim periods ending on or before 31 October 2020.
You can visit gov.uk to find information on the following:
- 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.
To claim for wages through the scheme see gov.uk
The grants are taxable income and also subject to National Insurance contributions. Find out if you are eligible and how much you can get on gov.uk.
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 when taking part in the Eat Out to Help Out Scheme. If you’ve claimed money through this scheme, you can make a repayment if either:
- You’ve realised that you have been overpaid or were not eligible
- You do not need the money and want to voluntarily pay it back.
Tax cuts and deferrals
The temporary 15% VAT cut for the tourism and hospitality sectors will be extended to the end of March. 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
- Business 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 31 March 2021. As a result, more businesses will now be able to benefit from the Coronvirus Business Interruption Loan Scheme, the Coronavirus Large Business Interruption Loan Scheme, the Bounce Back Loan Scheme.
Apply for a government-backed Start Up Loan of £500 to £25,000 to start or grow your business.
(launches on 6 April 2021)
The Recovery Loan Scheme ensures businesses of any size can continue to access loans and other kinds of finance up to £10 million per business once the existing COVID-19 loan schemes close.
On 16 September the government extended support to stop business evictions. 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.
Recovery Loan Scheme
The Recovery Loan Scheme ensures businesses of any size can continue to access loans and other kinds of finance up to £10 million per business once the existing COVID-19 loan schemes close, providing support as businesses recover and grow following the disruption of the pandemic and the end of the transition period.
- The finance can be used for any legitimate business purpose, including growth and investment.
- The government guarantees 80% of the finance to the lender to ensure they continue to have the confidence to lend to businesses.
- The scheme launches on 6 April and is open until 31 December.
For more information on the scheme, visit the gov.uk website.
- An extension of the Coronavirus Job Retention Scheme to September 2021 across the UK. Employers will be expected to pay 10% towards the hours their staff do not work in July, increasing to 20% in August and September, as the economy reopens.
- An extension of the UK-wide Self Employment Income Support scheme to September 2021, with 600,000 more people who filed a tax return in 2019-20 now able to claim for the first time.
- £5 billion for new Restart Grants – a one off cash grant of up to £18,000 for hospitality, accommodation, leisure, personal care and gym businesses in England.
- A new UK-wide Recovery Loan Scheme to make available loans between £25,001 and £10 million, and asset and invoice finance between £1,000 and £10 million, to help businesses of all sizes through the next stage of recovery.
- Extension to the VAT cut to 5%, for hospitality, accommodation and attractions across the UK until the end of September, followed by a 12.5% rate for a further six months until 31 March 2022.
- 750,000 eligible businesses in the retail, hospitality and leisure sectors in England will benefit from business rates relief to continue for three months to the end of June. For the nine months after, the rate will be 66 per cent.
- An extension to the temporary cut in Stamp Duty Land Tax in England and Northern Ireland until September will support the housing market and protect and create jobs.
- A new mortgage guarantee scheme will enable all UK homebuyers secure a mortgage up to £600,000 with a 5% deposit.
- Extension of the apprenticeship hiring incentive in England to September 2021, and an increase of payment to £3,000.
- £7 million for a new “flexi-job” apprenticeship programme in England, that will enable apprentices to work with a number of employers in one sector.
- Additional £126 million for 40,000 more traineeships in England, funding high quality work placements and training for 16-24 year olds in 2021/22 academic year.
- Small and medium-sized employers in the UK will continue to be able to reclaim up to two weeks of eligible Statutory Sick Pay (SSP) costs per employee from the Government.
- To further support the cashflow of businesses, the government is extending the loss carry back rules worth up to £760,000 per company.
- The rate of Corporation Tax will increase to 25%, which will remain the lowest rate in the G7. In order to support the recovery, the increase will not take effect until 2023. Businesses with profits of £50,000 or less, around 70% of actively trading companies, will continue to be taxed at 19%, and a taper above £50,000 will be introduced, so that only businesses with profits greater than £250,000 will be taxed at the full 25% rate.
- Beginning April 2021, the new super-deduction capital allowance will cut companies’ tax bill by 25p for every pound they invest in new equipment.
- Fuel duty and alcohol duties will be frozen.
- Eight new English Freeports will be based in East Midlands Airport, Felixstowe & Harwich, Humber, Liverpool City Region, Plymouth, Solent, Thames and Teesside.
- The £375 million UK-wide ‘Future Fund: Breakthrough’ will invest in highly innovative companies, such as those working in life sciences, quantum computing, or clean tech, that are aiming to raise at least £20 million of funding.
- Reforms to the immigration system will help ambitious UK businesses attract the brightest and best international talent.
- A new Help to Grow scheme, to offer up to 130,000 companies across the UK, a digital and management boost.
- Build Back Better: our plan for growth sets out the Government’s plans to support growth through significant investment in infrastructure, skills and innovation, and to pursue growth that levels up every part of the UK, enables the transition to net zero, and supports our vision for Global Britain.
All Budget 2021 documents can be found on the gov.uk website.