LRSG: the post-lockdown financial support available to businesses
The Local Restrictions Support Grant (LRSG) will help small businesses in the new tiered-restriction regime. David Prosser outlines what's available.
While England’s second national lockdown ended last week, the country’s return to tiered restrictions has left many businesses struggling to trade, particularly in the hospitality sector.
It is crucial that these businesses claim all the support to which they are entitled. In addition to the extension of UK-wide initiatives available to all businesses struggling during the pandemic, including the Job Retention Scheme and the two state-backed loan programmes, the Local Restrictions Support Grant (LRSG) offers additional help for English businesses in Tier-two and Tier-three areas.
Business rates are key
Administered by local authorities, this scheme pays cash grants based on the rateable value (used to determine business rates)of the properties that eligible businesses occupy, with different levels of award on offer depending on whether you’re open or closed.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The first level of grant applies to firms that have been able to reopen since the lockdown, but are losing trade owing to the ongoing restrictions. This might include pubs required to serve alcohol only with meals, for example, and restaurants that can’t serve groups indoors other than people from the same household. Firms in this group and in a property with a rateable value below £15,000 may be entitled to up to £467 for each 14-day period their business is affected, rising to £700 for businesses with properties valued between £15,000 and £51,000, and to £1,050 above this threshold. Your local authority’s website should explain how to claim.
More generous awards are available to businesses forced to close under Tier-two or Tier-three restrictions, such as pubs that do not serve food. For these firms, the grants rise to £667, £1,000 and £1,500, according to the rateable value of their properties. The same help is also available to businesses that closed at the beginning of the first lockdown at the beginning of March and have never been allowed to reopen, although these grants are not retrospective past 1 November. Such businesses include nightclubs and adult-entertainment venues.
Since all the grants under the LRSG are based on the rateable value of businesses’ properties; firms that do not pay business rates miss out. But if you don’t pay rates, yet are still hampered by Tier three, your local authority may still be able to offer support under the Additional Restrictions Grant. Finally, make sure you have also applied for any support you are due for England’s second lockdown between 5 November and 2 December. Businesses that had to close were entitled to cash grants of up to £3,000, with the sum again calculated with reference to business rates.
David Prosser is a regular MoneyWeek columnist, writing on small business and entrepreneurship, as well as pensions and other forms of tax-efficient savings and investments. David has been a financial journalist for almost 30 years, specialising initially in personal finance, and then in broader business coverage. He has worked for national newspaper groups including The Financial Times, The Guardian and Observer, Express Newspapers and, most recently, The Independent, where he served for more than three years as business editor.
-
Hargreaves Lansdown bumps up cash ISA with £25 cashback - does it beat the wider ISA market?
Just days before the end of the tax year, Hargreaves Lansdown has launched a £25 bonus for those who open a cash ISA on its savings platform. Does the bonus make it a competitive rate, and are you eligible for the cashback?
By Vaishali Varu Published
-
FCA targets finfluencers with new social media guidance
So-called finfluencers have been warned by the UK financial watchdog that they could face prosecution if they fail to follow new rules.
By Henry Sandercock Published
-
Should your business invest in a VoIP phone service?
Here's what you need to know about VOIP (voice over IP) services before landlines go digital in 2025.
By David Prosser Published
-
The end of China’s boom
Like the US, China too got fat on fake money. Now, China's doom is not far away.
By Bill Bonner Published
-
What is the future of Royal Mail in the UK?
With fewer of us sending letters and parcels, the Royal Mail is finding dealing with the nation’s post is an increasingly unprofitable and costly business.
By Simon Wilson Published
-
What's the secret of Manolo Blahnik's success?
Fashion maestro Manolo Blahnik shows little sign of slowing down at 81, and his company notched up a record financial year in 2022. What is the secret of his success?
By Jane Lewis Published
-
Michelle Mone's "tough year of pain"
Michelle Mone liked to portray herself as a working-class heroine who worked her way to the top through grit and determination. But her pedestal is built on sand.
By Jane Lewis Published
-
Trevor Milton, the Elon Musk wannabe, is jailed for fraud
The former CEO of Nikola, Trevor Milton, has been found guilty of lying about the development of the company's electric trucks.
By Jane Lewis Published
-
Directors should think twice before waiving limited liability
Should small-business directors ever provide a personal guarantee in return for bank finance?
By David Prosser Published
-
Why Russia's economy is doing better than predicted
Sanctions were supposed to strangle Russia’s economy, but it seems to be thriving. What’s going on?
By Simon Wilson Published