Ministers announce new grants for businesses affected by local closures

  • system provides a safety net to further protect jobs when a business is required to shut down
  • adds to billions of pounds of existing loans, grants and tax breaks, as well as the Chancellor’s plan for jobs

Ministers today announced new funding to support businesses affected by Covid 19.

Businesses in England that have to close due to local closures or targeted restrictions will now be able to receive grants worth up to £ 1,500 every three weeks, the Chief Treasury Secretary told MPs today , Steve Barclay. To be eligible for the grant, a business must have been forced to shut down due to local Covid 19 restrictions. Larger businesses will receive £ 1,500 every three weeks of shutdown. Small businesses will receive £ 1,000.

Payments are triggered by a national decision to shut down businesses in a high impact area. Each payment will be made for a 3 week lockdown period. Each new 3 week lockdown period triggers an additional payment.

Chief Treasury Secretary Steve Barclay said:

These grants provide businesses with a safety net when they temporarily close their doors to help save lives in their area.

As local economies end up cautiously reopening after local interventions, our Jobs Plan is here to help businesses get back on their feet, protect jobs and prosper in the future.

Business Secretary Alok Sharma said:

No business should be punished for doing the right thing, which is why today’s package will provide additional respite for businesses that have had to shut down temporarily to control the virus.

Through our broader Jobs Plan, we will continue to support our innovators and job creators across the country who play critical roles as we build back better after the pandemic.

Responding to the announcement, Federation of Small Business (FSB) National President Mike Cherry said:

While many businesses have now been able to reopen, thousands are still affected by local lockdowns.

This is why this intervention is so critical – throwing a much needed additional financial lifeline to those most affected.

We look forward to working with local government to ensure that there is a straightforward process for all businesses involved.

Speaking in the House of Commons, Barclay also reiterated the recent commitment to roll out additional payments for low-income people who need to self-isolate in areas with high levels of Covid-19.

Currently, these payments are available in Blackburn with Darwen, Pendle and Oldham as part of an ongoing trial program.

This targeted support is in addition to the eligibility of businesses for existing government business support schemes that remain available to impacted businesses. This includes the Coronavirus Job Retention Scheme, which has supported the salaries of 9.6 million people so far, government guaranteed loans and business grants worth up to £ 25,000 per property.

This aid will also support local jobs dependent on the affected companies, in addition to the Chancellor’s Plan for Employment.

Other measures announced to protect, support and create jobs include the Eat Out to Help Out program, a 15% reduction in VAT for tourism and hotels, a £ 2 billion Kickstart program, open to applications, and an investment of £ 8.8 billion in new infrastructure, decarbonisation and maintenance projects.


  • all businesses that are still closed nationally (e.g. nightclubs) will not be eligible
  • if a business occupies premises with a taxable value of less than £ 51,000 or occupies a property or part of a property subject to an annual rent or mortgage payment of less than £ 51,000, it will receive £ 1,000
  • if a business occupies premises with a taxable value of exactly £ 51,000 or more or occupies a property or part of a property subject to an annual rent or mortgage payment of exactly £ 51,000 or more, it will receive £ 1,500
  • Local authorities will also receive an additional 5% business support funding to enable them to help other businesses affected by closures that may not be on the commercial tariff list. Payments made to businesses from this discretionary fund can reach any amount up to £ 1,500 and may be less than £ 1,000 in some cases.
  • Local authorities will be responsible for distributing grants to businesses in cases where they are closed due to local interventions
  • other eligibility criteria may be determined by local authorities
  • as with other Covid business grants, local grants to closed businesses will be treated as taxable income
  • The UK government has guaranteed decentralized administrations will receive at least £ 12.7bn in addition to their March budget settlements to help them in their response to Covid-19 this year, with £ 6.5bn for the Scottish government, £ 4.0 billion for the Welsh government and £ 2.2 billion for the Northern Ireland executive. The Barnett formula will apply in the usual way to any additional funding provided to departments in connection with this intervention.
  • read other DHSC information about payments to people in self-isolation

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