*Update: The Chancellor announced (5 January 2021) that businesses in the retail, hospitality and leisure sectors are to receive a one-off grant worth up to £9,000. Any business which is legally required to close, and which cannot operate effectively remotely, is eligible for a grant. The one-off top-ups will be granted to closed businesses as follows:

• £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*
  

In response to the Coronavirus, COVID-19, the Government announced there would be support for small businesses, and businesses in the retail, hospitality and leisure sectors. Via the SBGF and RHLGF, the Government will reimburse Local Authorities that pay grants to eligible businesses. BEIS has published guidance setting out the details of the SBGF and RHLGF.

Small Business Grant Fund (SBGF)

Under the Small Business Grant Fund (SBGF) all businesses in England in receipt of either Small Business Rates Relief (SBRR) or Rural Rates Relief (RRR) in the business rates system will be eligible for a payment of £10,000 in line with the eligibility criteria.

Eligibility

Hereditaments included in the scheme are those which on the 11 March 2020 were eligible for relief under the Small Business Rate Relief Scheme (including those with a Rateable Value between £12,000 and £15,000 which receive tapered relief). These are hereditaments to which:

• A) – Section 43 (4B)(a) of the Local Government Finance Act 1988 (small business rate relief) applied, and
• B) – The value of E (as defined in article 3 of the Non-Domestic Rating (Relies, thresholds and Amendment) (England) Order 2017, SI 2017/102) was greater than 1

Hereditaments that were not eligible for percentage SBRR relief (including those eligible for the Small Business Rate Multiplier) are excluded.

Additionally, hereditaments which on 11 March 2020 were eligible for relief under the Rural Rate Relief scheme are also eligible for this scheme. These are hereditaments to which Section 43 (6B) of the Local Government Finance Act 1988 (rural rate relief) applied.

Eligible recipients will be entitled to receive one grant per hereditament from the earlier of the date payment of the grant by the Local Authority or 1st April 2020.

Exclusions to the relief:

• Hereditaments occupied for personal uses. Examples of where there may be personal use include private stables and loose boxes, beach huts and moorings.
• Car parks and parking spaces.
• Businesses which as of the 11 March were in liquidation or were dissolved will not be eligible.

Retail, Hospitality and Leisure Grant (RHLGF)

Under the Retail, Hospitality and Leisure Grant (RHLGF), businesses in England that would have been in receipt of the Expanded Retail Discount (which covers retail, hospitality and leisure) on 11 March with a rateable value of less than £51,000 will be eligible for the following cash grants per property:

• Eligible businesses in these sectors with a property that has a rateable value of up to and including £15,000 will receive a grant of £10,000, in line with the eligibility criteria as set out in paragraphs 24-31.
• Eligible businesses in these sectors with a property that has a rateable value of over £15,000 and less than £51,000 will receive a grant of £25,000, in line with the eligibility criteria as set out in paragraphs 24-31
• Businesses with a rateable value of £51,000 or over are not eligible for this scheme. Businesses which are not ratepayers in the business rates system are not included in this scheme.

Eligibility

Hereditaments which on the 11 March 2020 had a rateable value of less than £51,000 and would have been eligible for a discount under the business rates Expanded Retail Discount Scheme had that scheme been in force for that date, are eligible for the grant.

Charities which would otherwise meet this criteria but whose bill for 11 March had been reduced to nil by a local discretionary award should still be considered to be eligible for the RHL grant.

Eligible recipients will be entitled to receive one grant per hereditament from the earlier of the date of payment of the grant by the Local Authority or 1st April 2020.

Exclusions to the grant:

• Recipients eligible for the Small Business Grant Fund will not be eligible for the Retail, Hospitality and Leisure Grant.
• Hereditaments occupied for personal uses. Examples of where there may be personal use include private stables and loose boxes, beach huts and moorings.
• Car parks and parking spaces.
• Businesses which as of the 11 March were in liquidation or were dissolved will not be eligible.
• Hereditaments with a rateable value of £51,000 or over.

Specific funding schemes to support Retail Hospitality and Leisure organisations are also available in Scotland, Wales and Northern Ireland.