Financial support for businesses during lockdown

Following the National Lockdown, the Chancellor, Rishi Sunak has announced a new £4.6bn support package for UK companies who are struggling to cope financially during the pandemic.

The announcement came after the government broke the news of Lockdown 3 and tightened Covid-19 restrictions to contain the spread of the new variant of the coronavirus.

The new support package will mean the Treasury will provide £4bn of one-off “top-up grants” for an estimated 600,000 companies in the retail, hospitality and leisure companies – each can claim up to £9,000.

In addition, there will be a new £594m “discretionary” fund made available for local councils to support businesses not eligible for the top up grants but are still financially affected by the latest restrictions.

If your business is not eligible for the new grants but has been affected by the restrictions, you are encouraged to apply to your local authority for support.

The Chancellor also suggested that further finanical support could be available later in the year. The Treasury is set to review the current range of support packages and schemes prior to setting out the next phase of measures for the economy in the spring Budget (3rd March).

There are currently several Government schemes already in place to help businesses cope during the COVID crisis, including;

The Job Retention (Furlough) Scheme. This pays employees up to 80% of their wages and has been extended until the end of April.

Coronavirus Business Interruption Loan Scheme

Coronavirus Large Business Interruption Loan Scheme

The Bounce Back Loan Scheme

Self-employed

The chancellor did not announce any additional support for the self-employed. However, applications for the third phase of the Self Employed Income Support Scheme (SEISS), which covers 80% of average monthly profits, are still open.

To view and apply for the financial support schemes please visit: Financial Support for Businesses during COVID-19