£4.6bn business grants have been approved by the UK Government to support retail, hospitality and leisure businesses and preserve jobs all across the nation.
After months of surviving through the Pandemic, the wrath of Coronavirus doesn’t seem to come to an end. Almost all countries, around the globe, continue to face horrendous losses; some have lost businesses, some jobs, and some, their dear ones. The United Kingdom is no exception in this situation. As the country enters the second phase of lockdown, the death rate due to Covid-19 is as high as 81960 (and plus).
In this situation, it has become impossible for businesses to run under normal conditions. During this time of distress, the Government of the United Kingdom has decided to stay next to their citizens. Since the beginning of the horror, also known as the Coronavirus Pandemic, the Government has been pushing through to support their businesses as much as possible. Recently, £4.6 billion has been approved in new lockdown grants to support businesses and jobs.
What is happening?
According to the Chancellor, Rishi Sunak, a one-off £9000 business grants will be provided to businesses in the retail, hospitality, and leisure sectors. The trail of aid by the Government doesn’t end here.
£594 million discretionary funds have also been granted to support other impacted businesses. In addition to this, a £1.1 billion discretionary grant will be provided to aid Local authorities. There have been made arrangements for Local Restriction Support Grants worth up to £3000 over a month and an extension of the furlough scheme.
How £9000 lockdown grant works
- £4,000 for businesses with a rateable value of £15,000 or under
- £6,000 for businesses with a rateable value between £15,000 and £51,000
- £9,000 for businesses with a rateable value of over £51,000
The Prime Minister has announced that businesses in the United Kingdom will remain closed until February (which can also be extended according to the situation). The Government believes the closure of the businesses and an overall lockdown is going to help to control the virus. The grants are meant to support the citizens with certainty till the situation is under control.
The amount is thought to benefit over 600,000 business properties worth £4 billion all across the United Kingdom. The Chancellor, Rishi Sunak, has played a tremendous role in the entire implementation. He has said in his statement that, “Throughout the pandemic, we’ve taken swift action to protect lives and livelihoods and today we’re announcing a further cash injection to support businesses and jobs until the spring.” He further added, “This will help businesses to get through the months ahead- and crucially it will help sustain jobs, so workers can be ready to return when they are able to reopen.”
Besides the grants, an addition of £594 million will also be provided for other organizations and business firms that are not eligible for the grants but are somehow impacted by the restrictions imposed due to the Covid-19 pandemic.
The aid is provided solely to overcome the financial impacts of the Coronavirus and keep the businesses afloat until spring. The aid also includes business rates relief of 100% and the furlough scheme has been extended until April.
Almost one year after the hit of the pandemic, we are still adjusting to the new normal. The UK continues to be one of the most horribly impacted countries by the virus. The country has so far faced tremendously high death rates and innumerable losses. The unemployment rate rose to 4.9% in the three months to October (Source: BBC) with the jobless total up to 1.7 million.