South Shropshire MP Philip Dunne has welcomed announcement that the Government is providing local authorities with additional funding to target small businesses with high fixed property-related costs, but that are not eligible for the current grant schemes.
The Government is making an additional 5% uplift to the £12.33 Billion funding previously announced for the Small Business Grants Fund and the Retail, Hospitality and Leisure Grants Fund, so up to £617 million, available to local authorities.
Local Authorities will be asked to prioritise the following types of businesses for grants from within this funding pot:
Mr Dunne said: “This additional funding is very welcome, and I shall be speaking to Shropshire Council about how they intend to distribute it. There are a few businesses that have fallen through the cracks of the support network, due to not paying Business Rates, including B&Bs and those in serviced offices, or other premises where Rates are paid as part of a management charge – so this will help provide additional support to these important businesses for South Shropshire.
I have joined other backbench MPs in calling on the Chancellor to deliver additional support mechanisms for the hospitality and tourism sector, but this is a welcome first step.”
Businesses which are eligible for the existing grant schemes or Self-employed Income Support Scheme are ineligible for these grants. In addition, they will only be accessible to:
• Businesses with ongoing fixed building-related costs
• Businesses which can demonstrate that they have suffered a significant fall in income due to the Covid-19 crisis
• Business with fewer than 50 employees
• Businesses that were trading on or before 11th March.