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Covid-19 Local Restrictions Support Grants for businesses

Contents

Christmas Support Payment for wet-led pubs
Support for businesses forced to close
Support for businesses affected by Tier 2 and Tier 3 restrictions on socialising
Eligibility
State aid
Grant awards
How to apply


The Government has provided further funding to support businesses forced to close and hospitality, accommodation and leisure businesses impacted by local restrictions on socialising. We have allocated Additional Restrictions Grant funding to also support events businesses and businesses directly supplying these sectors that have also been severely impacted.

Christmas Support Payment for wet-led pubs

On 1 December 2020 the government announced the introduction of additional support over the festive period for wet-led pubs in areas under Tier 2 or 3 restrictions. The scheme is called the Christmas Support Payment (CSP). Find out more and apply.

Local restrictions support grants 

If your business was forced to close by national restrictions, is mandated to close under the Tier 3 restrictions, or your business has been severely impacted by the local restrictions on socialising introduced on the 18 September 2020, you may be eligible to apply for the following grants.

If you don't pay business rates, for example if you trade from a shared space, you can still apply for these grants if you meet the eligibility criteria.

Unlike the previous national lockdown grant scheme, businesses that occupy properties with a rateable value of more than £51,000 may apply.

Support for businesses forced to close

You may be eligible to claim a Local Restrictions Support Grant (Closed) if your business was mandated to close, or if you've had to change the nature of your business* due to:

  • The national lockdown between 5 November and 2 December, and/or
  • Tier three restrictions applicable to the North East from 2 - 29 December 2020 

Details of businesses required to close under Tier 3 restrictions can be found on our advice for businesses, self-employed and employers page.

*If you are a restaurant, pub or non-essential retail business and your business has continued to operate using take-away, click and collect or online with delivery services, you will still be entitled to a grant as the main (substantive) purpose of your business has had to close.

Payment amount

If your business is eligible you'll receive the following grant payments for each relevant period

 Total payment for period from 4 November - 2 December 2020Payment for each 14 day period:
2 - 15 December 2020
16 - 29 December 2020
£15,000 or less and businesses without a rates account£1,334£667
More than £15,000 to less than £51,000£2,000£1,000
From £51,000 and above£3,000£1,500

Further information on which businesses must close can be found on the Gov.uk website.

Support for businesses affected by Tier 2 and Tier 3 restrictions on socialising

Qualifying businesses that have remained open but suffered from reduced demand and have been severely impacted by the Tier 2 restrictions on socialising between 18 September and 4 November, or the Tier 3 restriction introduction on 2 December may be entitled to apply for a Local Restrictions Support Grant (Open).

Businesses not required to close and that continued to trade but suffered from a reduced demand period and were severely impacted by the national lockdown restrictions may also be eligible to apply for a grant for the period from 5 November to 2 December.

Businesses covered by this scheme

Businesses in hospitality, accommodation and leisure and events, and businesses directly supplying these sectors that that were trading on the 17 September are covered by this scheme.

This includes hotels, restaurants, cafés, bars, social clubs, sports and leisure venues and local community venues, and those businesses that directly supply to these businesses such as food suppliers to restaurants, hotels, cafes or leisure venues.

Payment amount

If your business is eligible and not required to close during the relevant period you'll receive a grant payment(s) as follows:  

Rateable value of your propertyTotal payment for the 7 week period from 18 September to 4 November 2020Total payment for the 4 week period from 5 November to 2 December 2020Payment for each 14 day period:
2 - 15 December 2020
16 - 29 December 2020
£15,000 or less and businesses without a rates account£1,634.50 £934 £467
More than £15,000 and less than £51,000 £2,450 £1,400 £700
From £51,000 and above£3,675 £2,100 £1,050


Eligibility

To be eligible to apply for a Local Restriction Support Grant, your business must:

  • occupy commercial property located in the borough of Gateshead
  • have been active at the time the relevant restrictions were introduced
  • have been required to close or change the nature of the business (for example move to a collection and delivery service) due to the national lockdown between 5 November and 2 December and/or the Tier three restrictions introduced on 2 December, or
  • be a hospitality, accommodation, leisure or events business, or a business directly supplying these businesses that has suffered from reduced demand and has been severely impacted by the local restrictions on socialising between 18 September and 4 November, and the Tier 3 restriction introduced on 2 December, or
  • be a hospitality, accommodation, leisure or events business, or a business directly supplying these businesses that was not required to close and continued to trade but suffered from reduced demand and was severely impacted by the national lockdown restrictions between 5 November to 2 December.

Applicants must be able to:

  • demonstrate they were trading at the time the relevant restrictions were introduced
  • confirm they have ongoing fixed property-related costs if they do not currently pay business rates - eligible costs include, rent, mortgage payments, insurance, and utilities
  • confirm, and provide evidence upon requested, that they suffered from reduced demand and were severely impacted by the restrictions

Business not required to close and that can continue to trade because they do not depend on providing direct in person services from premises (for example accountants) are not eligible for a Local Restrictions support Grant (Closed) payment.

Business that were already closed, or have chosen to close but are not legally required to, are not eligible for a Local Restrictions support Grant (Closed) payment.

Ineligible businesses include:

  • businesses without ongoing fixed commercial property costs including home based businesses operating from domestic properties, excluding B&Bs
  • self catering and accommodation providers not for business rates or in the rating list, or registered with the council's Licensing Team
  • businesses that are insolvent, in administration, or where a striking-off notice has been made
  • business that have already received the maximum level of state aid permissible 

We reserve the right to vary the terms of the scheme at any time, and without notice, should it be necessary to do so.

We will not approve or make payment of a further grant to a business that has already received a Local Restrictions Support Grant or partial grant for the same property, passed on by a landlord. 

State aid 

The United Kingdom left the EU on 31 January 2020, nonetheless under the Withdrawal Agreement the State aid rules continue to apply during a transition period, subject to regulation by the EU Commission.

Grant awards must not exceed state aid limits as permitted under the de Minimis and Covid-19 Temporary State Aid Framework. The rules are fully explained in the government state aid guidance. Applicants will be required to declare any other de minimis aid received in the last three years. 

Applicants will be required to declare they were not an undertaking in difficulty on 31 December 2019.

Grant awards 

We have been awarded limited funds from Government for this scheme and it is expected that there will be a high level of demand from businesses.

Grant awards will be made at the levels set out above for the Local Restrictions Support Grant (Open) and Local Restriction Support Grant (Closed) schemes.

A grant may be paid for each qualifying property from which an applicant business operates eligible activity.

Payments will be made directly to approved recipients' bank accounts by electronic transfer. 

Beneficiaries will receive written confirmation stating that by accepting the grant payment, the business confirms that they are eligible for the grant scheme, including that any payments accepted will be subject to state aid requirements.

Other information

Grant income received by a business is taxable therefore funding paid under either Local Restriction Support Grant will be subject to tax. Only businesses which make an overall profit once grant income is included will be subject to tax.

The Government and the Council will not accept deliberate manipulation and fraud and any business caught falsifying their records to gain grant money will face prosecution and any funding issued will be subject to claw back, as may any grants paid in error.

State Aid rules and requirements apply to this grant scheme.

We do not accept any liability for any issues that may arise for businesses because of applying for, receiving, or not receiving grant payments under this scheme.

Grant awards will be made to applicants satisfying the above eligibility criteria subject to the availability of resources.

There is no appeal process.

Enquiries about the scheme can be emailed to businessgrants@gateshead.gov.uk. When emailing please include the name of your business, the business address, and if your business has a Business rates account.

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