Chancellor unveils £4.6bn support package
Businesses are to receive a one-off grant worth up to £9,000 as part of a £4.6 billion support package, Chancellor Rishi Sunak has announced.
Sunak promised more funding to businesses in the retail, hospitality and leisure sectors after Prime Minister Boris Johnson confirmed the country would be going into another lockdown as a result of the COVID-19 pandemic.
The funding is for businesses forced to close under new restrictions and is to be allocated based on property rateable value.
The Government will provide £4,000 for businesses with a rateable value of £15,000 or under, £6,000 for businesses with a rateable value between £15,000 and £51,000 and £9,000 for businesses with a rateable value of over £51,000.
Over 600,000 businesses are expected to benefit from the cash injection, available via applications to local authorities.
As part of the support package, a further £594 million is also being allocated to local authorities and devolved administrations to support firms that are not eligible for the grants.
The Government also announced 100% business rates relief for businesses in the retail, hospitality and leisure sectors, alongside £1.1 billion existing discretionary funding for local authorities.
Alongside the business rate relief, the furlough scheme has already been extended to April 2021, as well as 100% Government-backed loans being extended to March this year.
“The new strain of the virus presents us all with a huge challenge – and whilst the vaccine is being rolled out, we have needed to tighten restrictions further.
“Throughout the pandemic, we’ve taken swift action to protect lives and livelihoods and today we’re announcing a further cash injection to support businesses and jobs until the Spring.
“This will help businesses to get through the months ahead – and crucially it will help sustain jobs, so workers can be ready to return when they are able to reopen.”
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