The government is providing funding to local authorities to support businesses which are not required to close but are severely impacted by the restrictions on socialising under the Tier 2 rules i.e. the restrictions on persons from different households mixing indoors.
The funding provided to each Council has been based on the number of hospitality premises (those serving food and drink), leisure businesses, hotels and bed and breakfast accommodation in their area. The government has asked local authorities to prioritise these types of businesses for the available funds under this scheme.
This grant is designed for those impacted by restrictions, and not by wider challenges in the economy. Applications must be able to demonstrate how the restrictions have impacted their business
If your business is forced to close because of local or national restrictions imposed and is registered to pay business rates, support is available via the Local Restrictions Support Grant (Closed) scheme.
The following types of business are deemed eligible for the LRSG (Open) scheme:
- Properties that are being used for the sale of food and/or drink to visiting members of the public, covering: Restaurants – Takeaways - Sandwich shops – Cafés - Coffee shops – Bars - Pubs
- Cinemas or live music venues (wholly or mainly used for the performance of live music for the purpose of entertaining an audience)
- Assembly or leisure property (Properties that are being used for the provision of sport, leisure and facilities to visiting members of the public (including for the viewing of such activities), covering: Sports grounds and clubs − Museums and art galleries − Nightclubs − Sport and leisure facilities − Stately homes and historic houses − Theatres − Tourist attractions − Gyms − Wellness centres, spas, massage parlours − Casinos, gambling clubs and bingo halls – Public halls – Clubhouses, clubs and institutions
- Properties where the non-domestic part is being used for the provision of living accommodation as a business, covering: Hotels, Guest and Boarding Houses − Holiday homes − Caravan parks and sites
To be eligible for this grant, your business must:
- Be based in East Cambridgeshire
- Be in the hospitality, hotel, accommodation and leisure sectors
- Have been open as usual, and providing in-person services to customers from their business premises, for the period East Cambridgeshire was under Tier 2 restrictions
- Have been registered for business rates before 1st December 2020 or Council Tax if you operate a B&B
- Be severely impacted by the Tier 2 social restrictions and be able to provide proof of loss due to the impact of the Tier 2 restrictions
- Have been established before the introduction of Tier 2 restrictions
You must notify your local council if your situation changes and you no longer meet the eligibility criteria. For example, you become insolvent.
Businesses with multiple properties, each with a Business Rates liability, will be eligible to apply for a grant for each property. Separate applications will however be required for each business property.
The level of each grant will be calculated in accordance with the rateable value of the property that is used for the calculation of business rates. For B&B’s that do not have a rateable value, payment will be based on the number of employees.
These will be paid as grants to businesses to cover each 14-day period that East Cambridgeshire remains under Tier 2 restrictions.
|Rateable Value||14-day payment amount||Employee Numbers for B&B’s registered for Council Tax||14-day Payment Amount|
|£15,000 or less||£467||0-10||£467|
|£15,001 and less than £51,000||£700||11-25||£700|
|£51,000 or greater||£1050||26+||£1050|
- Businesses that are not subject to restrictions or are not within the business sectors indicated above.
- Businesses established after the 2nd December 2020 restrictions in commenced.
- 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.
- Businesses that do not pay Business Rates
- Retail businesses are not eligible for the LRSG (Open) scheme.
- Businesses which are in administration, insolvent, have been or are listed to be dissolved, or where a striking-off notice has been made are not eligible for funding under this scheme.
- Businesses that are legally required to close or have chosen to close due to the Tier 2 restrictions.
Making an Application
The Council is inviting eligible businesses, to submit an application to the Council. You can either do this online or by requesting an application form by email at firstname.lastname@example.org or by telephone on 01353 665555.
There is a requirement for all grants made under this Additional Restrictions Grant scheme be State Aid compliant. Please see further government guidance on this – link to https://ec.europa.eu/competition/state_aid/what_is_new/covid_19.html
Managing the risk of fraud
The Council will not accept deliberate manipulation or fraud - and any business caught falsifying their records to gain grant money may face prosecution and any funding issued will be subject to claw back, as may any grants paid in error. All information is subject to internal and external audit checks.
By applying for an Additional Restrictions Grant all applicants give authority to East Cambridgeshire District Council to share data for efficient system administration and to protect the Public Purse, subject to the GDPR. This will include sharing data with Anglia Revenues Partnership and other Local Authorities.
The Council will be required to share data with Government Departments for monitoring and other reasons. By applying for Additional Restrictions Grant all applicants give authority for this disclosure.
Grant income received by a business is taxable, therefore funding paid under the Additional Restrictions Grant scheme will be subject to tax. Only businesses which make an overall profit once grant income is included will be subject to tax.