Grants worth up to £9,000 to be given to businesses - but fears are raised that it's not enough

Around 600,000 retail, hospitality and leisure sites in England will be able to claim the one-off grant of up to £9,000, based on the size of each store, pub, cafe or hotel tied into the business rates paid by each business.

The payments will cost the Treasury £4.6bn and are aimed to help support the high street as new lockdown measures announced on Monday take hold.

Chancellor Rishi Sunak also announced a further £594m for local authorities and devolved administrations to support businesses not eligible for the grants.

Mr Sunak said: ‘The new strain of the virus presents us all with a huge challenge – and whilst the vaccine is being rolled out, we have needed to tighten restrictions further.

‘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.

‘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.’

However there were fears that his plan does not go far enough, especially as the current business rate relief holiday is due to end in April.

Ross McNally, Hampshire Chamber chief executive and executive chairman, said: ‘We have continually called on the government to build more flexibility into its business support measures. While this immediate package is a welcome step given the new lockdown, it needs to be part of a continuing long-term plan and not just a short-term means to plug gaps in cashflow.

‘And although it’s true that our retail, hospitality and leisure industries are witnessing devastating impacts from this crisis, ministers should not forget about the thousands of jobs in supply chain companies and a variety of impacted sectors in our wider business communities which also need long-term support.’

Becky Lodge, who runs Startup Disruptors, a business support group that looks after hundreds of businesses in the south, said: ‘The raft of new measures are a vital lifeline to many businesses across the UK, however, there are seemingly sectors that yet again the government is continuing to ignore and there are many families in peril at this time due to this decision making.

‘Micro business owners and freelancers are all part of a movement called #ExcludedUK and they are lobbying the government to look after each and every self-employed person as well as those with premises, so far, these business owners have been left stranded without help and support. With lockdown set to continue, Rishi Sunak and Boris Johnson need to think again to ensure that every business is supported as fully as possible with the myriad of challenges that lie ahead for all businesses in the UK.’

Claire White, who runs Sweet Peas Play Cafe in Fareham, said her situation is critical.

She said: ‘We've been closed since Christmas Eve and haven't heard about any financial help until today. We haven't been able to pay the rent yet. Nothing seems easy to find, however we are always grateful for any money to help pay our bills. I do wish they'd just tell landlords to freeze rents.’

Other businesses are also hanging on by a thread.

Iain Kirby, who runs Shenanigans Irish Bar in Southsea, said: ‘To be honest I will take anything at the minute. We have been closed for 32 weeks in total. The first lock down I did feel supported, however since then support has died off. All of my staff are gone. No business should fail because of this virus when the issue is out of our hands. My place adhered to all the rules, spent money I didn't have to ensure we were compliant and we were closed down regardless. We are hanging in there, but desperately need support as the bills still need to be paid.’

Gareth Johnson, who runs Gym01 in Fratton, also said his situation was dire.

He said: ‘Since the beginning of November we have been open for 17 days and now are looking likely to be able to open some time after March. The £6,000 grant we qualify for will not cover one months’ critical running costs and it just goes to show how out of touch our government is with small businesses across the country. How businesses are supposed to be able to operate and employ staff after this third lockdown is beyond me.’

George Purnell, from Koop+Kraft in Emsworth, said he hoped for further measures such as further rate relief and a VAT cut.

He said: ‘The grants are good news for businesses like us, but only for a month or two as there is only so far that money can stretch.

‘We need substantial support in the spring to kickstart the industry and economy. I’d like to see rates cut and VAT remaining at five per cent. For some that will be a lifeline as the struggle won’t end when places reopen as a lot of them will be playing catch up.

‘Extra support at this stage was not only appreciated but essential, but I wonder if it will be enough for a lot of businesses who have been badly affected recently.’

Terence Carvalho, from Becketts in Southsea, said: ‘While the grants are welcome, it just isn’t enough.

‘The bills don’t stop. People need to be paid. They need to up the amount of support. It’s like putting a plaster on a broken leg.’

Matt Crick, who runs Victoriana furniture store in Southsea, said: ‘The government’s financial aid package comes as a relief to myself and many other small independent businesses in the area, even if it has come at the last minute.

‘Unfortunately we have no idea how long this new lockdown will last, with some sources saying it might be March before restrictions are eased. If this is the case then further aid will be needed, including extensions to the furlough scheme and business rates relief.’

Kelly Semke, accountant and insolvency practitioner at Quantuma, from Fareham, said the measures while welcome, were not enough.

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She said: ‘The chancellor has once again sought to provide much needed support in sectors where businesses have been directed to close by the government, which will undoubtedly be welcomed. However, it is only likely to amount to a small contribution to overheads, such as rent and utilities, as well as employee national insurance and pension contributions, which are not covered by the furlough scheme.

‘These measures also potentially fail to support the countless other sectors such as travel, printing, haulage and recruitment, all of which have been adversely affected by a decline in economic activity or a change in working practices.’

Stef Nienaltowski, chief executive officer at Shaping Portsmouth, said: ‘Since March we have proved that this city's businesses are resilient. Any grant has to help but until we see the exact detail of which businesses are getting what exact amounts, we have to reserve our full judgement. But any contribution has to help.’

He encouraged businesses in need of help to get in touch with the council’s helpline.

He added: ‘I have faith and believe in the people and organisations that run our businesses to come through this and get back to the growth path we have been on for years.’

According to real estate specialists Altus Group, 401,690 non-essential shops, 64,537 pubs/restaurants, 20,703 personal care facilities and 7,051 gyms and leisure centres are now closed.

A message from the Editor, Mark Waldron

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