Facebook Twitter Pinterest Google+ Addthis

Covid-19 business support grants

Local Restrictions Support Grants (LRSG) and Additional Restrictions Grant (ARG)

The government has announced a range of grants to support businesses affected by the current coronavirus restrictions.

There is a range of Local Restrictions Support Grants (LRSG) to support businesses that have remained open and those that have been required to close during local and national lockdowns, because of the coronavirus pandemic.

We are currently awarding grants for the national lockdown period only, please be patient as we have a large volume of grants to process.

Payments for the Sector Specific Grants and Local Restrictions Support Grant (open and closed) for businesses affected by the Tier 2 and Tier 3 restrictions will be made in early 2021.

Only complete this application form if you have a Business Rates account reference. There will be a single application to cover all the Local Restrictions Support Grants (LRSG) the government has put in place.

Start application

 

 

Update (January 2021)

Following the introduction of a national lockdown, the government has announced more support grants for businesses affected by the restrictions.

We'll update this page with details as soon as we receive confirmation of the funding and eligibility criteria.

Update (December 2020)

  • Following the government's introduction of Tier 4 restrictions in London from 20 December, we are waiting government guidance on how support schemes for Tier 4 areas will operate.

  • Christmas support payments for wet-led pubs are available for pubs that predominantly serve alcohol rather than food.


Applications are now live for a one-off payment of £1,000 per wet-led pub where Tier 2 or Tier 3 restrictions were in place between 2 and 29 December 2020. Please note payments will not be made until January 2021.

 

The four schemes are explained as follows:

  1. Local Restrictions Support Grant (closed) Addendum

  2. Sector Specific Grant: nightclubs and other specific venues

  3. Local Restrictions Support Grant (Open): for businesses affected by the Tier 2 restrictions

  4. Additional Restrictions Grant (ARG): discretionary scheme

Businesses required to close from 5 November to 2 December (Local Restrictions Support Grant - Closed) Addendum

These grants are only available to businesses who pay business rates and meet the very specific qualifying criteria.

This grant provides support for businesses required to close due to national lockdown restrictions from 5 November 2020 until 2 December 2020.

This includes for example:

  • all non-essential retail

  • hospitality venues

  • accommodation

  • leisure and sports facilities

  • entertainment venues

  • personal care facilities

  • community centres

  • nightclubs

  • dance halls

  • discos

  • sexual entertainment venues

  • hostess bars

This will be paid at the following rates depending on the rateable value of the business premises concerned for the period of 5 November 2020 to 2 December 2020.

 Rateable value

Rateable value of premisesNational Lockdown Grant Payment

£15,000 or under

£1,334 per 28-day qualifying restriction period

Over £15,000 and less then £51,000

£2,000 per 28-day qualifying restriction period 

Exactly £51,000 or above

£3,000 per 28-day qualifying restriction period

Businesses that may qualify

The following businesses may be eligible for a National Lockdown Grant as they have been required to close by the government from 5 November 2020:

  • non-essential retail

  • hospitality venues

  • accommodation

  • leisure and sports facilities

  • entertainment venues

  • personal care facilities

  • community centres and places of worship.

Full details of businesses that are required to close, and those that can remain open during the National Lockdown from 5 November until 2 December 2020 are available from the government's website.

Businesses that do not qualify

The following businesses were not required to close by government during the national lockdown from 5 November until 2 December 2020 and are not eligible for a grant payment:

  • Food shops, supermarkets, garden centres, hardware stores, building merchants and off-licences

  • Petrol stations, car repair and MOT services, bicycle shops, taxi and vehicle hire businesses, car parks and motorway service stations

  • Banks, building societies, post offices, loan providers and money transfer businesses

  • Medical services such as dentists, opticians and pharmacies

  • Vets, pet shops and agricultural supplies shops

  • Storage facilities, funeral directors, launderettes and dry cleaners  

  • Public toilets  

  • Outdoor playgrounds.

Businesses that may have chosen to close their premises but were not required to will not be eligible for this grant.  

Qualifying criteria

The main qualifying criteria are set out as follows:

  1. Your business must have been registered for business rates liability with London Borough of Tower Hamlets on the first full day of the national lockdown period to which the restrictions apply

  2. Your business provides services “in person” to customers at its premises

  3. Your business is not able to continue trading, as it depends on providing “in-person” services from premises and cannot effectively operate its services remotely

  4. Your business was open for trading immediately prior to the national lockdown arrangements (i.e. immediately before 5 November 2020)

  5. Your business was required to close under the national lockdown arrangements

  6. The award of the grant together with other funds received will not exceed State Aid limits of €800,000

  7. Your business is not in administration, insolvent or subject to a striking off notice.

Businesses with multiple properties (each with a business rates liability) will be eligible to apply for a grant for each property. Separate applications will be required for each business property.

Where possible, we will contact business ratepayers from the last round of grant payments to let them know when they can apply.

All businesses will be required to apply using the online application form to ensure compliance with the central government governance requirements. 

Note you will be required to supply the following:

  • NNDR account number

  • Company or charity registration number

  • National Insurance number (If you are a sole trader)

  • VAT registration number (if applicable)

  • Bank statements - Copies of most recent bank statements must show the name which match your business rates account name and will be the account to which the grant will be paid. These will need to be uploaded as part of this process so please ensure you have digital versions available to upload.

Grant for nightclubs and sexual entertainment venues (Local Restrictions Support Grant - Sector)

This grant applies to nightclubs, dance halls, discos, sexual entertainment venues and hostess bars which have been required to close since 23 March 2020.

Grant payments will be initially awarded for the period 1 November 2020 to 4 November 2020 at the following four day period rate.

Once businesses have been awarded the grant, from 2 December 2020 if these businesses are still mandated to be closed, they will receive the payments below every 14 day period.

Rateable value - sector specific grant payment and pro rata amounts 

Rateable value of premises Sector Specific Grant Payment for 14 day periodPro rata amounts for 1 November – 4 November 2020 (4-days)

£15,000 or under

£667 per 14-day

£191 for the 4-day period

Over £15,000 or less than £51,000

£1,000 per 14-day

£286 for the 4-day period

£51,000 or above

£1,500 per 14-day

£429 for the 4-day period

 

All businesses need to apply using the online application form to ensure compliance with the central government governance requirements.

Note you will be required to supply the following:

  • NNDR account number

  • Company or charity registration number

  • National Insurance number (if you are a sole trader)

  • VAT registration number (if applicable)

  • Bank statements - Copies of most recent bank statements must show the name which match your business rates account name and will be the account to which the grant will be paid. These will need to be uploaded as part of this process so please ensure you have digital versions available to upload.

Hospitality, hotel, bed and breakfast and leisure businesses while in Tier 2 and 3 (Local Restrictions Support Grant - Open/Closed)

The open discretionary grant is for businesses subject to restrictions due to Tower Hamlets being under Tier 2 restrictions from 17 October until 4 November 2020 and Tier 3 restrictions from 2 December to 19 December 2020.

This includes those businesses currently registered for business rates and in the hospitality, hotel, bed and breakfast and leisure industry only. Hairdressers, beauty salons and travel agents are not eligible.

This will be paid at the following rates dependent upon the rateable value of the business premises concerned for the period 17 October to 4 November 2020 and 2 December to 19 December 2020.

 Rateable value - open grant payment for tier 2 and 3

Rateable value of premisesOpen grant payment (Tier 2/3)

£15,000 or under

£934 per 28-day qualifying restriction period

Over £15,000 and less than £51,000 

£1,400 per 28-day qualifying restriction period

Exactly £51,000 or above

£2,100 per 28-day qualifying restriction period

Businesses that may qualify

Businesses may be eligible for a Local Restrictions Support Grant (Open) where they are not legally required to close but are severely impacted by restrictions in place.

This is as a result of a local authority being in Tier 2 and Tier 3, arising from the coronavirus pandemic.

Businesses in the hospitality, hotel, bed and breakfast or leisure sectors that occupy a commercial property in Tower Hamlets and are actively trading and and have a business rates liability with London Borough of Tower Hamlets may be eligible to apply.

Businesses that do not qualify

  1. Businesses that were not subject to restrictions or are not within the business sectors indicated above, are not eligible under the scheme.   

  2. Businesses established after 17 October 2020 restrictions had commenced.   

  3. Businesses in areas outside the scope of the localised restrictions, as defined by Government.  

  4. Businesses subject to national closures (e.g. nightclubs) that will instead be potentially eligible under the Local Restrictions Support Grant (Sector).

  5. Businesses which have already received payments that equal the maximum levels of State Aid permitted under the de minimis and the Covid-19 Temporary State Aid Framework.

  6. Businesses that do not have a business rates liability with London Borough of Tower Hamlets.  

  7. Businesses that were in administration, are insolvent or where a striking-off notice has been made at the date of the local lockdown

  8. Hairdressers, Beauty salons and travel agents

Local Restrictions Support Grant (Closed) – Tier 2 and 3

This is a grant for businesses that pay business rates and have been told by government that they must close under Tier 2 or Tier 3 restrictions.

This will be paid at the following rates dependant upon the date which the business was mandated by central government to close and the rateable value of the business premises concerned for the period 2 December to 19 December 2020.

Rateable value grant payment tier 2 and 3

Rateable value of premises

Closed grant payment (Tier 2/3)

£15,000 or under

£667 per 14-day qualifying restriction period

Over £15,000 and less than £51,000 

£1,000 per 14-day qualifying restriction period

Exactly £51,000 or above

£1,500 per 14-day qualifying restriction period

 

Application

Businesses with multiple properties (each with a Business Rates liability) will be eligible to apply for a grant for each property. Separate applications will be required for each business property.

Where possible, we will contact business ratepayers from the last round of grant payments to let them know when they can apply.

Note you will be required to supply the following:

  • NNDR account number

  • Company or charity registration number

  • National Insurance number (If you are a sole trader)

  • VAT registration number (if applicable)

  • Bank statements - Copies of most recent bank statements must show the name which match your business rates account name and will be the account to which the grant will be paid. These need to be uploaded as part of this process so please ensure you have digital versions available to upload. 

Council Discretionary Scheme (Additional Restrictions Grant)

The Additional Restrictions Grant is a discretionary scheme to be established by each local authority.

It is anticipated this scheme will be launched after the business rates grants to support local businesses that may not pay business rates directly to the council and are not eligible for the other grants.

The qualifying criteria is still being decided and we are working to present options to allocate the fixed funding available.