Kevan has received an update from Durham County Council on the latest support available to businesses. The update is available below:

I am writing to provide an overview the new Business Support Grants available to businesses impacted by local and national restrictions due to the Covid-19 pandemic and to update you on the roll out of these grants schemes. Apologies for the length of this email however there are a number of different elements that apply.

I have today updated our Discretionary Rate Relief & Business Rates Hardship Policy, which is the mechanism by which these grants are delivered, to reflect these schemes under a delegated decision in consultation with the relevant portfolio holders.

There are a number of strands to these new business support grants, with specific eligibility criteria attached to each by the Government, which are explained below.

Local Restrictions Support Grant (Open)

County Durham was subject to Tier 2 restrictions on socialising from 18/09/20 to 04/11/20. The grants available under this scheme as set out in the government guidance are aimed at businesses impacted most significantly by the restrictions on socialising, which are those businesses within the hospitality, accommodation and leisure sector which includes hotels, restaurants, cafe’s, bars, sports and leisure venues, local community buildings and local charity shops.

Businesses associated with personal care such as those in the Health and Beauty industry (including hairdressers and tattooists) will not be eligible for this grant. Neither will other general retail business or garden centres or any businesses operating from home (other than registered Bed and Breakfast businesses – excluding AirBnBs). Those businesses in the supply chain to hospitality, accommodation and leisure sector and significantly impacted may be also be able to claim support under this scheme depending on individual circumstances.

The payment amount will depend on the rateable value of the business premises occupied that was impacted by the restrictions on socialising during the period we were subject to Tier 2 restrictions. It will extend to businesses in these sectors that are not the registered occupier of a rated premises, for example they occupy a shared space with another business in a property listed in the rating system. In such circumstances we will need proof of the signed rental agreements and will use the rent equivalent values to determine what the level of support will be applicable to them.

The levels of payment for those eligible businesses in this category during the period 18 September to 4 November will be as follows:

Property’s Rateable value Or the Rent Equivalent of the Eligible Business in Shared Space of a Property listed in the Rating List Total payment for the 7 week period 18 September to 4 November 2020
Less than £15,000 £1,634.50
More than £15,000 and less than £51,000 £2,450
More than £51,000 £3,675

 

An initial analysis of hospitality, accommodation and leisure properties on the Business Rating lists or those occupying shared spaces that we are aware of, would indicate that there are approximately 2300 to 2500 businesses which could be eligible for grants under this scheme.

National Restrictions – Restrictions Support Grant (Closed)

This scheme provides financial support to businesses required to close following the Prime Minister’s announcement of a national lockdown for four weeks from 05/11/20, This national lockdown requires all non-essential businesses to close for the four week period. The list of business types required to close is available here: https://www.gov.uk/government/publications/further-businesses-and-premises-to-close/closing-certain-businesses-and-venues-in-england

This includes:

  • Clothing stores and tailors
  • homeware stores
  • tobacco and vape shops
  • electronic goods and mobile phone shops
  • charity shops
  • photography studios and antique stores
  • Markets (except livestock markets or stalls which fall under the list of essential businesses above, for example those selling food or hardware)
  • Car and other vehicle showrooms and other premises, including outdoor areas, used for the sale or hire of caravans, boats or any vehicle which can be propelled by mechanical means. However taxi or vehicle hire businesses can continue. For example a customer could order a rental vehicle online and collect it in person.
  • Car washes.
  • Auction houses (except for auctions of livestock or agricultural equipment).
  • Restaurants; pubs; bars, including those in hotels or members’ clubs; social clubs
  • Cafes and canteens, excluding workplace canteens where there is no reasonable alternative
  • Holiday accommodation

Businesses operating from home are not eligible for support under this scheme, other than registered B&Bs (excluding AirB&Bs).

The scheme allows payments to be made for those businesses which have had to close the substantive part of their business but have diversified in terms of its delivery method during the national lockdown; for example a business now providing a click and collect service rather than in-person services e.g. a bar or restaurant which is providing food takeaway service during the national lockdown period. Those businesses in the supply chain to hospitality, accommodation and leisure sector and who are significantly impacted may be also be able to claim support under this scheme depending on individual circumstances.

Businesses who can remain open in line with government guidelines, but who choose to close, will not be eligible for this support.

Eligible businesses will receive a single grant payment to cover the four weeks in line with the following:

Property’s Rateable value Or the Rent Equivalent of the Eligible Business in Shared Space of a Property listed in the Rating List Total payment for the 4 week period
Less than £15,000 £1,334
More than £15,00 and less than £51,000 £2,000
More than £51,000 £3,000

 

Businesses required to close in line with the national restrictions but who are not the registered occupier of a rated premises, for example they occupy a shared space with another business in a property listed in the rating, but who have a minimum monthly fixed property cost of £200 will also be eligible for these payments under our local Policy.

Our analysis would indicate there are a further 2,400 properties in addition to the circa 2,500 businesses that will receive support under the Local Restrictions Grant (Open) scheme who have also been required to close that will be eligible for grants under this scheme. We therefore expect to pay around 5,000 grants under this scheme.

Local Restriction Support Grant Sector – for businesses unable to open since 23 March 2020

If a business has not been allowed to re-open since 23 March 2020 (for example nightclubs) and have not diversified and opened in any way, they will be eligible to claim a grant of up to £3,000 for every 4 week period that it’s closed (see table below). This starts from 1 November 2020 and it is not possible to backdate payments before this date.

Property’s rateable value Total payment for the 4 week period
Less than £15,000 £1,334
More than £15,00 and less than £51,000 £2,000
More than £51,000 £3,000

 

Our Approach

We have worked with colleagues across the North East Combined Authority and North of Tyne Combined Authority area to agree a common set of principles and policies for these grants schemes so there is consistency and to avoid confusion.

We are launching these schemes today, which is the earliest we have been able to get these up and running following delays in receipt of the Government guidance. We will receive funding to pay these grants on 13 November. We will be contacting businesses who we believe are eligible and inviting them to make an application for the relevant grant and this will be complemented with a social media campaign.

Full details of the Schemes together with the on-line application form can be found at www.durham.gov.uk/covid19businessgrants – this is being updated now with the latest details.  We are asking businesses to use one application process to make it a more streamlined approach to administering these grants and to support businesses when making a claim – some businesses will be eligible for more than one grant .

Information about other business support programmes available in County Durham can be found at www.durham.gov.uk/covid19business

I hope this helps set out the details of business support that we are launching.

Regards

John

John Hewitt 🌈
Corporate Director of Resources