Only '9% of grant funding so far paid out by councils' to help struggling businesses
Around £1bn out of a total support package of £11bn under the Government’s grant funding schemes has so far been paid, it says, with a change in the way the funding is being administered being blamed for the slow rate of companies receiving funds.
“Businesses were initially told by Government that they did not need to do anything but are now being told to complete application forms slowing down the process markedly creating additional pressure for small firms already in distress,” says Robert Hayton, head of UK business rates at Altus Group.
“The money needs to get to those most in need far quicker.”
Under the Small Business Grant Fund all businesses in England in receipt of either Small Business Rates Relief or Rural Rates Relief in the business rates system are eligible for a one-off cash grant of £10,000.
According to Altus, there are 720,400 properties liable for business rates with a rateable value less than £15,000 and are in receipt of small business rates relief. While 3,400 properties receive rural rates relief.
The grant funding scheme, first announced by the Chancellor on 17 March, provides cash grants totalling £7.24bn for those premises.
Further grants of up to £25,000 are also available for retail, leisure and hospitality premises with a rateable value below £51,000.
Last week four of the hospitality industry’s leading trade bodies - The British Beer and Pub Association, British Institute of Innkeeping, Campaign for Real Ale, and UKHospitality - joined together to ask the Government to accelerate the distribution of funds from its Retail and Hospitality Grant Scheme.
"The package of support that the Government has announced is very generous. Unfortunately, the delivery of that support has been far too slow," said UKHospitality chief executive Kate Nicholls.
