For a one-off grant of up to £ 9,000, more than 600,000 retail, hospitality and leisure companies across the UK can apply. That is what the U.K. is doing. In a £ 4.6 billion assistance package to assist British firms weather recent closures, the government reported.
Rishi Sunak has revealed an additional 594 million pounds to support companies who are not eligible for funding for local authorities and devolved administrations.
The additional funding ensures that £375 million will be raised by the Scottish government, £227 million by the Welsh government and £127 million by the Northern Ireland Executive.
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“The chancellor said, “The current strain of the virus presents us all with a big challenge, and we have had to tighten restrictions further as the vaccine is rolled out.
We have acted rapidly to protect lives and livelihoods during the pandemic, and today we are announcing another infusion of funding to help companies and jobs through the spring.
“This will help businesses weather the coming months and, most importantly, it will help preserve jobs so workers are ready to return when they can reopen.”
The fees are dependent on the size of each company, bar, cafe or hotel and are correlated with the business tax that each company usually pays. Up to 4,000 pounds and medium-sized ones up to 6,000 pounds can be demanded by the smallest firms.
However, amid demands from retail and hospitality representatives for such a move, the chancellor refrained from extending the tax cut, which expires in April.
A VAT reduction and changes to sick leave or support for working parents are other notable absences called for by corporate groups and unions.
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Helen Dickinson, chief executive of the British Retail Consortium, said on Monday night, “The biggest difference the government can make is to extend business rates relief from April for those hardest hit by repeated closures.”
401,690 non-operational shops, 64,537 pubs/restaurants, 20,703 personal care facilities and 7,051 gyms and leisure centers are currently closed, according to real estate specialist Altus Group.
On top of grants of up to £ 3,000 for closed stores and up to £ 2,100 a month for impacted stores after they reopen, the latest one-off grants come on top.
In the U.K. The government has now provided local authorities with £ 1.1 billion in additional grants, extended the exemption program until April, and extended business loans funded by taxpayers until March.
“This new grant package is welcome and will help reassure the hardest hit businesses,” said Roger Barker, policy director at the Institute of Directors.
“We are especially pleased that our proposal to raise the discretionary grant fund available to local authorities has been taken up by the Treasury. This program helped to reach those who did not have access to other aid. The government should be prepared to broaden the fund, if necessary.
He added: “When the exemption scheme and other support measures come to an end, the chancellor needs to be wary of a spring cliff in business support.”
“Businesses will also be keen for the government to continue to set out its plans for the introduction of the vaccine to support their planning. The path of the virus is extremely uncertain, and the government must respond in an agile manner to prevent lasting economic damage.”