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 click here to see an overview of grants available and the dates these are available.
Additional Restriction Grant (ARG)
Scheme is now live for applications.
We want to continue helping businesses impacted by COVID-19 restrictions. We are pleased to announce that our Phase 1 £1m Additional Restrictions Grant scheme is now live and open to businesses to apply online. The closing date is 2 February 2021. It will be for non-essential Newham businesses who do not directly pay business rates and were affected by Tier 2 early closing restrictions of 17 October-4 November and/or the second lockdown of 5 November-2 December.
Click here for more information on the Additional Restrictions Grant .
£4.6 billion in new lockdown grants to support businesses
The Chancellor of the Exchequer announced on 5 January that businesses in the retail, hospitality, and leisure sectors are to receive a one-off grant worth up to £9,000. This follows the Prime Minister’s announcement on 4 January that these businesses will be closed until at least February half-term in order to help control the virus, and, together with the wide range of existing support, provides them with certainty through the spring period.
- one-off top up grants for retail, hospitality, and leisure businesses worth up to £9,000 per property, to help businesses through to the spring
- £594 million discretionary fund also made available, to support other impacted businesses
- this comes in addition to the £1.1 billion further discretionary grant funding for local authorities, Local Restriction Support Grants worth up to £3,000 a month and extension of furlough scheme.
The cash is provided on a per property basis to support businesses through the latest restrictions; it’s expected to benefit over 600,000 business properties worth £4 billion in total across all nations of the UK.
For further information on the Chancellor’s announcement, vist the GOV.UK site .
More updates will provided here in due course.
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.
Furlough Scheme extended and 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 to 30 April 2021.
Claims for furlough days in December 2020 must be made by 14 January 2021.
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 Job Support Scheme will not be introduced until after Coronavirus Job Retention Scheme ends.
Self-Employment Income Support Scheme Grant Extension
The extension will last until April 2021. Grants will be paid in two lump sum instalments each covering a three month period.
The third grant will cover a three month period from 1 November 2020 until 31 January 2021. The Government will provide a taxable grant calculated at 80% of 3 months average monthly trading profits, paid out in a single instalment and capped at £7,500 in total. This is an increase from the previously announced amount of 55%.
The government is providing the same level of support for the self-employed as is being provided for employees through the Coronavirus Job Retention Scheme, which has also been extended until March 2021.
The government has already announced that there will be a fourth grant covering February 2021 to April 2021. The Government will set out further details, including the level, of the fourth grant in due course.
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.
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
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
- 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 30 November 2020 for new applications: 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 and the Future Fund.
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.