Businesses in the retail, hospitality and leisure sectors are to receive a one-off grant worth up to £9,000 per property, Chancellor Rishi Sunak announced this morning.
A £594m discretionary fund is also being made available to support other impacted businesses.
The package follows the prime minister’s announcement last night that these businesses will be closed until at least February half-term in order to help control the virus.
The cash is provided on a per-property basis to support businesses through the latest restrictions, and is expected to benefit over 600,000 business properties, worth £4 billion in total across all nations of the UK.
Under the new grant package, closed businesses with a rateable value of £15,000 or below will be entitled to £4,000, while those with a rateable value between £15,000 and £51,000 will receive £6,000.
Businesses with a rateable value of more than £51,000 will be eligible for the maximum amount of £9,000.
Mr Sunak said: “The new strain of the virus presents us all with a huge challenge – and whilst the vaccine is being rolled out, we have needed to tighten restrictions further.
“Throughout the pandemic we’ve taken swift action to protect lives and livelihoods and today we’re announcing a further cash injection to support businesses and jobs until the Spring.
“This will help businesses to get through the months ahead – and crucially it will help sustain jobs, so workers can be ready to return when they are able to reopen.”
— Rishi Sunak (@RishiSunak) January 5, 2021
The new one-off grants come in addition to billions of existing business support, including grants worth up to £3,000 for closed businesses, and up to £2,100 per month for impacted businesses once they reopen.
The government has also provided 100% business rates relief for retail, hospitality and leisure businesses, £1.1 billion existing discretionary funding for Local Authorities, the furlough scheme now extended to April and 100% government backed loans, extended until March.
The £594m discretionary fund, meanwhile, is being made available for local authorities and the devolved administrations to support other businesses not eligible for the grants, that might be affected by the restrictions.
Businesses are required to apply to their local authorities.