In his 2021 Budget, Chancellor of the Exchequer, Rishi Sunak, vowed to do “whatever it takes” to help rebuild the economy, following the acute damage caused by COVID-19 and forge a path to economic recovery “providing support for jobs and businesses as we emerge from the pandemic”. His three-part plan for economic recovery included a heavy focus on supporting those hardest hit by the pandemic, including a range of financial support for those hardest hit through the pandemic!
What is the Restart Grant?
The restart grant, announced on the 3rd March during Chancellor Rishi Sunak’s budget announcement, was put in place to provide support to businesses who were required to close during the lockdown as lockdown now begins to ease. The restart grant is planned to replace previous government grants, such as the Local Restrictions Support grant.
The restart grant is a one-off payment, available from April 2021 to specific businesses to help them recover and reopen as lockdown restrictions begin to ease. Companies who are eligible for the grant could receive up to £18,000 in compensation.
Who can apply for the Restart Grant?
Businesses in these sectors are eligible for the Restart Grant:
- non-essential retail
- personal care
Due to the nature of these businesses, the constraints that would have been placed on them in comparison to other businesses were increasingly more restrictive. So it is expected these businesses will need an extra boost to help them return to normal levels. There is a definitive list of requirements your business must fit into to be considered and accepted to gain support from the government. This will be taken into consideration when you apply for support.
The amount of compensation your business can claim is very dependent on your business’s rateable value (as of 1 April 2021); the higher your rateable value being, the more you are likely to receive.
How to apply for the grant?
It is up to your council to assess whether you are eligible for the Restart Grant; however, it is understood that businesses must generally fall into one of the above-mentioned sectors, primarily offering in-person services and trading on 1 April 2021 (this could mean you had staff on Furlough, were operating online or preparing to reopen).
If you think you are eligible, it is best to visit your local authority’s website for more information, and acting sooner rather than later would be in many businesses best interest, as the support is expected to come to an end around the time of the final lockdown review, on the 21st of June, when the government has planned to lift all lockdown restrictions.
Local governments will have received an additional £425m to distribute grants to businesses that are not eligible for restart grants yet have still been severely affected by COVID-19 lockdown restrictions. Therefore, even if you think your business will not qualify for this specific grant, but you feel your business needs a boost to bounce back to its full potential, there may still be a chance for financial support.
How can Animo help?
Our expert consultants are fluent in the requirements and expectations regarding support following COVID-19 and the Chancellors’ 2021 Budget Announcement. We can help advise you on the best course of action for your business as restrictions ease from COVID-19. For any queries on the above mentioned or any other relevant business guidance, get in touch with one of our expert consultants today by calling (0)207 060 0835, emailing at email@example.com, or by filling in a contact form below!