The Government has announced the provision of new direct cash grants to those businesses ordered to close in areas where new restrictions are put in place.
Under the plan, large businesses in England will now be able to claim up to £1,500 per property every three weeks.Smaller firms (with a rateable value or annual rent/mortgage below £51,000) will receive £1,000 every three weeks.
The Treasury calls it a “safety net to further protect jobs where a business is required to close”.
Business Secretary Alok Sharma adds:
“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.
Annie Gascoyne, CBI Director of Economic Policy, said:
“New direct cash grants will certainly help small businesses if their area falls under new restrictions to protect public health.
“But the impact of COVID-19 is still hurting businesses, so the Government will need to look at more targeted support in the autumn. That needs to include a successor to the furlough scheme and allowing businesses to defer VAT payments from July to September.”