National lockdown - local restrictions business support grants

 

The Government has implemented a four-week national lockdown, from 5 November to 2 December 2020, which means that the following types of businesses and venues will need to close or restrict how they provide goods and services:

  • non-essential retail
  • hospitality venues
  • accommodation
  • leisure and sports facilities
  • entertainment venues
  • personal care facilities

Read the government’s guidance on new national restrictions for businesses and venues for more information.

Milton Keynes Council will be distributing government-funded grants to businesses required to close during the national lockdown period.

 

Local Restrictions Support Grants

This is for businesses who receive a rates bill from the Council and are required to close during the current lockdown restrictions.  A single grant to cover the four-week period will be paid to each eligible business.

 

Eligibility

Government guidance on eligibility can be found here. 

Your business may be eligible if it:

  • occupies property on which it pays business rates, and
  • it was open and trading on 4 November 2020, and 
  • has been required to close for at least 4 weeks because of the national lockdown, or
  • has adapted their business to offer Takeaway or 'Click and Collect' products (see below)

It has been agreed that business who have subsequently adapted their business to offer Takeaways and 'Click and Collect' products will be eligible for this scheme. This is because their substantive business has had to close. This will include, for example, a restaurant who can no longer receive seated guests but has instead moved towards providing takeaway food collection or deliveries.

The rate of payment for eligible businesses will be:

  • for properties with a rateable value of £15,000 or under, grants will be £1,334 for the four weeks
  • for properties with a rateable value of more than £15,000 and below £51,000, grants will be £2,000 for the four weeks
  • for properties with a rateable value of £51,000 or over, grants will be £3,000 for the four weeks

 

Exclusions

This grant will not be paid to the following:

  • businesses who have been able to stay open because they have not been required to close
  • businesses whose substantive business is a take away
  • businesses that are able to continue to trade because they do not depend on providing direct in-person services from premises and can operate their services effectively remotely (e.g. accountants, solicitors)
  • businesses that have chosen to close but not been required to will not be eligible for this grant. This includes business premises which were already closed directly before the restrictions were imposed
  • businesses which have already reached the state aid limit (see below)
  • business which are subject to insolvency or striking off action are not eligible for funding under this scheme

The list of business that are required to close and those that can stay open can be found here. 

 

If you already receive state aid

The Local Restrictions Support Grant counts towards state aid.

Payments count towards the total de minimis State aid you’re allowed to get over a 3-year period - €200,000. If you have reached that threshold, you may still be eligible for funding under the COVID-19 Temporary Framework. The limit for the framework is €800,000.

If you proceed to make an application we will ask you to complete a declaration confirming that you will not exceed the relevant State aid threshold.

 

Tax implications

Grant income received by a business is taxable. The Local Restrictions Support Grant will need to be included as income in the tax return of the business.

 

To apply

In order to manage the risk of fraud and error all applications will need to be made through our grant approval portal.

Begin your application here 

You will need to have the following documents available to upload to support your application

  • proof of identity of sole trader (e.g. passport, driving licence) or limited company (document confirming company name, registered address, company number)
  • bank statement confirming name and address of account holder (this must be dated within the last 3 months)
  • evidence of trading on 4 November 2020
  • evidence to confirm property was occupied (e.g. utility bills) 

 

Other local grant support for businesses

At the present time we are only able to accept applications from businesses who pay rates. The Council is developing a discretionary scheme that will extend the support to businesses who do not pay rates directly to the Council and further details will be published here as soon as that scheme is finalised.

Last Updated: 13 November 2020