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Businesses Have Just One Month to Claim £1.6bn in Unspent Grants

Posted 1 months ago

Businesses Have Just One Month to Claim £1.6bn in Unspent Grants
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It has been revealed that businesses have until the end of August to claim up to £1.6bn in unspent grants that were originally made available through the government’s coronavirus emergency relief schemes. 

Business Secretary Alok Sharma has written to all local authorities requesting that they return the unspent funds made available through the Retail, Leisure and Hospitality Scheme and Small Business Rate Relief by August 28.  

Shops, hotels, restaurants and other leisure businesses whose premises rateable value which determines how much commercial property tax they pay is between £15,000 and £51,000, are eligible for a £25,000 grant through the Retail, Hospitality and Leisure Grants Fund. 

Separately, any business qualifying for small business rate relief or rural rates relief is eligible for a grant of £10,000 through the Small Business Grant Fund (SBGF), as is any business in the retail, leisure or hospitality industry whose property is valued at less than £15,000 for business rates.

John Webber, head of rating at Colliers International, a property advisory firm, said the unspent grants from the first two schemes should be used to help thousands of small businesses which missed out on the discretionary funding, which he said had failed.

“The deadline for the scheme’s closure could mean thousands of companies in serviced offices still waiting for the Government’s valuation office agency to determine their business rates status also could miss out,” Webber said. 

He added: “It’s been a postcode lottery as to how and if a business actually managed to benefit from these grants. In terms of the discretionary grant fund, unlike receiving funds from the SBGF, businesses also had to evidence a loss of income resulting from COVID-19 to receive grant monies, and different boroughs gave different deadline dates and conditions for applications. It’s been confusing and inconsistent”

Author: Sacha Bright & Oliver Murphy

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To the best of our knowledge, the information we have provided is correct at the time of publishing. Sacha Bright is not a solicitor or accountant and we recommend that you seek professional advice on any topic discussed. Nextfin is not liable for any damages arising from the use of or inability to use this site or any material contained in it, or from any action taken as a result of using the site.  

Tagged: sme raising funds coronavirus news alternative finance



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