North West Leicestershire District Council Among Best In England For Funding Businesses During Lockdown
By Graham Hill
4th May 2020 | Local News
Nearly all eligible North West Leicestershire businesses have received cash as part of a scheme to help them stay afloat during the Covid-19 pandemic – one of the highest rates in England.
And the District earns top marks compared to other authorities in the country.
But with funds much slower to reach struggling firms in other areas, business groups are urging councils to act swiftly to stop companies from going under and those they employ from losing their jobs.
In March, the Chancellor Rishi Sunak announced grants of between £10,000 and £25,000 for small and medium-sized businesses to support them during the coronavirus crisis.
North West Leicestershire District Council had paid 80 per cent of the 1,757 business properties flagged as qualifying for help by April 19, the latest Department for Business, Energy and Industrial Strategy figures show.
This was one of the highest proportions of any council in England, with firms in the area having received £12.3 million so far.
But it still means 67 local business outlets earmarked for the scheme are yet to get their hands on the remaining £8 million of allocated funds.
Councils across England had paid out grants worth £6 billion to 484,000 business properties as of April 19 – 50 per cent of those identified as eligible and just under half of the money made available.
The Federation of Small Businesses praised the councils that are getting money into the hands of firms quickly.
National chair Mike Cherry added: "However, in other areas barely 10 to 20% of the grants have been issued.
"It's those areas that must act now if they want to see small businesses survive on their local high streets when we reach the other side of this crisis."
The British Beer and Pub Association warned pubs and other hospitality businesses could be among the last to see restrictions relaxed, making support even more critical.
Chief executive Emma McClarkin said councils that are lagging behind need to learn lessons from the best performers, and get help to businesses "as a matter of urgency".
She added: "Otherwise, pubs will close for good and the thousands of people they employ will lose jobs."
Winchester City Council in Hampshire had the best record – it was the only local authority to pay grants to all business properties deemed eligible.
Meanwhile, Birmingham City Council had only paid 7% of those in line for assistance, according to the data.
Richard Watts, chairman of the Local Government Association's resources board, said councils have worked hard to distribute the cash, with many setting up dedicated teams.
"Councils know these grants are a vital lifeline to businesses who may be struggling and worried about the future," he added.
"It has been a big task to set up and administer this new scheme in a matter of weeks but councils will continue to work at pace to ensure eligible businesses receive this vital funding as quickly as possible."
The government support takes two forms. The Small Business Grants Fund is worth £10,000 and available to those who ordinarily also qualify for relief on their business rates due to their small size.
The Retail, Hospitality and Leisure Business Grants Fund is open to those which would have qualified for a 100 per cent reduction in business rates under the previously announced Expanded Retail Discount scheme as of March 11.
Grants are provided for a business property so firms with multiple outlets can receive more than one payment.
Business Secretary Alok Sharma said: "I am very grateful to local authorities who have been working flat out to ensure these vital funds get to hard-pressed small business owners.
"Government is doing everything we can to support individual councils and help ensure that these grants reach local firms as soon as possible.
"I urge everyone to keep working at pace to get the money where it is needed quickly."
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