Businesses closed by local lockdowns to receive £1,500 grants

Businesses in England which are forced to close as a result of a local lockdown will now be able to claim a £1,500 survival payment from the Treasury.

Ministers announced this afternoon that firms which are required to shut as a result of crackdowns launched following spikes in coronavirus cases will be eligible to apply for the financial help. 

They will be able to claim a grant worth up to £1,500 per property for every three weeks they are not able to open their doors. 

The Treasury is hoping the new scheme will provide a ‘safety net’ to struggling firms and help them stay afloat.

The announcement of new support for businesses in local lockdown areas comes after Bolton became the latest location to be subject to tougher restrictions. 

Chief Secretary to the Treasury Stephen Barclay today announced businesses closed by local lockdowns will be eligible to claim £1,500 grants 

Announcing the new scheme, Chief Secretary to the Treasury Stephen Barclay said: ‘These grants provide businesses with a safety net as they temporarily close their doors to help save lives in their local areas.

‘As local economies eventually and carefully re-open after local interventions, our Plan for Jobs is there waiting to help businesses get back on their feet, protect jobs and thrive in the future.’

Business Secretary Alok Sharma said: ‘No business should be punished for doing the right thing, which is why today’s package will offer additional breathing space for businesses that have had to temporarily close to control the virus.

‘Through our wider Plan for Jobs, we will continue to back our innovators and job creators across the country who are playing a critical role as we build back better from the pandemic.’

In order to be eligible for the money businesses must have been told to close due to local Covid-19 restrictions. 

The largest businesses will be able to get £1,500 every three weeks they are required to shut while smaller businesses will receive £1,000.

The payments will be triggered by a national decision to close businesses in an area experiencing a spike in cases.

Businesses which are still closed as a result of national rules – for example night clubs – will not be eligible for the money.  

The announcement of the new financial support came after Bolton became the latest location in the UK to be hit with tougher coronavirus restrictions

The British Chambers of Commerce welcomed the payments but warned they would not be enough for many firms. 

The BCC’s director general Adam Marshall said: ‘Businesses forced to close through no fault of their own will welcome any new grant support, but for most this will not be enough to offset the resulting cash crunch.

‘With new local restrictions becoming more frequent, a comprehensive package of support will be needed for affected firms.’

The Government yesterday ordered that restaurants, cafes, bars and pubs in Bolton will be immediately restricted to takeaway only while all hospitality venues are required to close between 10pm and 5am.