News
Welsh Government support for businesses affected by lockdown
19 Oct 2020
Welsh “firebreak” lockdown
Following First Minister Mark Drakeford’s announcement of a Welsh “firebreak” lockdown starting from Friday 23 October for two weeks, we wanted to remind our Welsh clients about the extension to the Job Support Scheme for businesses required to close as a result of local lockdowns. While we have not seen any official confirmation the intent of the scheme was to provide for businesses affected by measures introduced by any of the 4 UK governments and so we fully expect the scheme will be applicable to businesses covered by this new Wales-wide lockdown.
More details are available via this link which we published shortly after the Chancellor of the Exchequer announced the extension to the JSS: wrpartners.co.uk/insights/expansion-of-the-job-support-scheme
Following central Government’s announcement of support for businesses in England affected by local lockdowns, the Welsh Government has announced a package of support measures for businesses in Wales affected in a similar way. Details of the two packages are below:
Local Lockdown Non Domestic Rate Grant
Purpose of the Grant?
The purpose of the grant is to support businesses with their cashflow to help them survive the economic consequences of the local lockdown in their local authority area.
The grant seeks to complement other Covid-19 response measures to support businesses, social enterprises and charitable organisations in Wales.
Who Can Apply and How Much For?
This grant is available to businesses liable for paying business rates.
A grant of £1,500 is being made available for retail, leisure and hospitality businesses occupying properties with a rateable value of between £12,001 and £51,000.
A grant of £1,000 is being made available to businesses eligible for small business rates relief (SBRR) in Wales with a rateable value of £12,000 or less. There are certain detailed exceptions as well as additional requirements for self-catering holiday accommodation as detailed in the published guidance notes here.
Business will not be eligible for this grant if:
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They are eligible for, or have received, the Local Lockdown Discretionary Grant from your Local Authority
Local Lockdown Discretionary Grant
Purpose of the Grant?
The purpose of the grant is to support businesses with immediate cash flow support to help them survive the economic consequences of the local lockdown in their local authority area. The grant seeks to complement other Covid-19 response measures to support businesses, social enterprises and charitable organisations in Wales.
A grant of £1,500 is being made available for retail, leisure and hospitality businesses that do not pay business rates.
Who can apply?
These grants can only be claimed by businesses that meet the following criteria:
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Business was trading prior to 1st March 2020
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Businesses must be operating in Wales
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Businesses must have one or more of the following:
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HMRC Unique Taxpayer Reference (UTR) Number
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VAT Registration Number or a VAT exemption certificate
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Company Registration Number
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Have experienced a drop in turnover greater than 40% as a result of the local lockdown imposed as a result of Covid-19
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Supported businesses must aim to maintain employment for 12 months
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Only one application per business
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Businesses will need to provide evidence of active trading up to date of local lockdown
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Business bank statement to be provided
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Only businesses not liable to pay business rates may be eligible for this grant
You are not eligible for this grant if:
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They are eligible for, or have received, the Local Lockdown Non-Domestic Rate Grant from your Local Authority
How much can I claim?
A grant of £1,000 is being made available for businesses not in the retail, leisure and hospitality sector and do not pay business rates. Again there are certain restrictions and exceptions detailed in the published guidance notes here.
Applications
Businesses can apply for the grants by accessing their Local Authority’s Local Lockdown webpage. If eligible they will be able to access the online application form and complete it.
The Grants will open for applications 28 days after the relevant local authority imposed local restrictions. It will be open for a period of three weeks or until the fund is fully committed.
Applications will be dealt with on a first come first served basis so it will be important for businesses to check when applications open and make their application as soon as possible after that time.
SOURCE: www.businesswales.gov.wales
Get in Touch
We love meeting new, exciting businesses. Get in touch with our team to see how we could enhance and protect your financial position.
Or if you’d prefer to speak to someone directly just give us a call on: 08000 664 664 or email: hello@wrpartners.co.uk.
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