1. Introduction - Allerdale



Allerdale Borough CouncilLocal Restrictions Support Grant (open) – policy and guidance1. Introduction 1.1On Thursday 22 October, the Government announced additional funding to support businesses under restrictions in LCAL 2 and 3. This is support for businesses that are not legally required to close but which are severely impacted by the localised restrictions on socialising put in place to manage coronavirus and save lives. 1.2Localised restrictions are legally binding restrictions imposed on specific Local Authority areas or multiple Local Authority areas, where the Secretary of State for Health and Social Care uses powers in Part 2A of the Public Health (Control of Disease) Act 1984 in response to the threat posed by coronavirus and commonly as part of a wider set of measures. 1.3This support will take the form of a grant funding scheme in Financial Year 2020-2021. 1.4The Local Restrictions Support Grant (Open) is aimed primarily at hospitality, hotel, bed & breakfast and leisure businesses and is a discretionary scheme. 1.5Each eligible Local Authority will be issued funding allocations that will be calculated using Valuation Office Agency (VOA) data on the number of hospitality, accommodation and leisure businesses in that Local Authority geography, plus a 5% top-up. This is to provide each eligible Local Authority with an allocation based on a consistent approach that reflects the businesses particularly impacted by LCAL 2 and 3 restrictions. 1.6This policy sets out the criteria and process for the provision of grants to businesses under the Local Restriction Support Grant (Open), aligned with the Government guidance issued on 12 and 17 December 2020. This policy should be read in conjunction with the national guidance and FAQs published on the gov.uk website. 1.7Relevant businesses that are not required to close but are severely impacted may continue to receive funding under LRSG (Open) if restrictions are increased to Local COVID alert level: Very High (LCAL 3). Closed businesses would be eligible for LRSG (Closed) or the Additional Restrictions Grant.1.8In the event of entering Tier 4 (or higher) local restrictions or renewed widespread national ‘lockdown’ restrictions being imposed, the Local Restrictions Support Grant (LRSG) (Open) will cease to apply, as relevant businesses will receive funding from either the LRSG (Closed) scheme or the Additional Restrictions Grant scheme which will also apply. 2. Eligibility criteria 2.1Local Authorities have the freedom to determine the precise eligibility criteria for these grants. However, Government have set specific conditions for this funding and asked local authorities to target this funding at particular sectors.2.2Government intends the funding to be targeted at hospitality, hotel, bed & breakfast and leisure businesses. The council will also consider supporting sustainable businesses that have not been legally required to close but which are severely impacted by LCAL 2 or 3 restrictions and the local priority areas are outlined below.2.3The Government’s conditions are that:Businesses must have been trading* the day before local restrictions came into force to be eligible to receive funding under this scheme. Where local restrictions are preceded by national ‘lockdown’ measures, requiring the closure of businesses that are otherwise eligible, it is accepted that those businesses are still trading. (Allerdale entered LCAL 2 restrictions on 2 December 2020)Companies that are in administration, are insolvent or where a striking-off notice has been made are not eligible for this scheme. Companies that have already received grant payments equaling the maximum levels of State Aid permitted under the de minimis and the Covid-19 Temporary State Aid Framework are not eligible for this scheme.*Trading – a business is considered to be trading if it is engaged in business activity.2.4Additional eligibility criteria are: Business must be predominantly based in Allerdale with the majority of their business or headquarters in Allerdale. Businesses need to demonstrate that they been significantly impacted by Tier 2 or Tier 3 restrictions.Businesses in the hospitality, hotel, bed & breakfast, leisure and tourism sectors will be prioritised for grant funding (with or without a business rates assessment).Direct supply chain businesses for hospitality, hotel, bed & breakfast and leisure and tourism businesses (with or without their own business rates assessment) - must be able to demonstrate that they have been severely impacted** by Tier 2 or Tier 3 restrictions. Applications from supply chain businesses will be considered if funding remains after the local priority business eligible applications have been met.Businesses without a business rates assessment will need to demonstrate fixed businesses premises costs.***** Severely impacted - A statement will be required from the business showing that at least 50% of their revenue comes from hospitality, accommodation, leisure or tourism business customers. Further evidence may be requested where it is not easily evident to the assessor that they meet this criterion. *** Fixed business premises costs - are costs relating to the operation of the business that cannot be cancelled during this period and include property costs such as rent/lease for non-rateable commercial premises, commercial mortgage or loan?costs, Council Tax (for B&Bs only), business insurance costs. Fixed costs do not include employee costs.2.5The above list is not exhaustive, but it is intended to guide the council’s decision-making.2.6Businesses may be eligible for each commercial property that they operate from within Allerdale. Each property requires separate processing. Some businesses may, therefore, receive more than one grant payment.2.7The council will use its discretion in identifying the right businesses to receive this funding, based on our application process.2.8Through the application and assessment process the council will require the business to state that, by accepting the grant payment, the business confirms that they are eligible for the grant schemes. This includes where the council already has bank details for businesses and are in a position to send out funding immediately. 2.9Businesses will need to notify the council promptly if they no longer meet the eligibility criteria for additional grants at any point in each 14 day cycle.2.10If a business qualifies for the LRSG (Closed) or (Sector) scheme during the same qualifying period it will not be eligible for a grant under the LRSG (Open) scheme as well, and the LRSG (Closed) or (Sector) scheme will take precedence. 3. How much funding will be provided to businesses?3.1The council will receive funding based on the number of hospitality, hotel, bed & breakfast and leisure businesses there are in the area + 5%. This is a fixed sum and will not be varied. The following tiers of grant funding will apply in Allerdale (based on those set out in the government guidance): Grants of ?467 per 14-day period for businesses occupying hereditaments with a rateable value (or fixed premises costs) of exactly ?15,000 or under on the date of the commencement of the local restrictions. Grants of ?700 per 14-day period for businesses occupying hereditaments with a rateable value (or fixed premises costs) over ?15,000 and less than ?51,000 on the date of the commencement of the local restrictions. Grants of ?1,050 per 14-day period for businesses occupying hereditaments with a rateable value (or fixed premises costs) of exactly ?51,000 or above on the date of the commencement of the local restrictions. 3.2Businesses should note that:Grant income received by a business is taxable. The Local Restrictions Support Grant will need to be included as income in the tax return of the business.Grant income is subject to State Aid regulations4. Application and assessment process?4.1Some businesses who qualify for this scheme are those who were successful applicants under the Local Restrictions Support Grant (Closed) scheme that covered the period 5 November to 1 December 2020. This applies to hospitality, accommodation, leisure and tourism businesses that pay business rates to the Council.4.2In order to reduce the administrative burden the Council will contact businesses in affected sectors who we believe will be eligible based on their previous applications. 4.3A short questionnaire and declaration will be emailed to those successful businesses for completion. The Council may write to ask for additional supporting documentation where necessary. 4.4Other businesses will need to apply using the application form for the LRSG (Open) grant online via?Allerdale borough Council’s website. 4.5It is important that applications are completed fully with?all the relevant documents attached. It will be important that you provide all the information accurately and?truthfully, and?provide all the supporting documents that are requested.? Failure to do so could lead to your application being declined or delayed.?4.6Once your application has been received, the Council will process it as quickly as possible.? Applicants may be asked to supply more information and the Council is?also required to undertake pre-payment fraud checks,?which may add to the length of processing time.??Evidence required to support applications?4.7The Council is relying on businesses to be honest and open with the Council and present to us their evidence of need and eligibility for the LRSG (Open) Grant.?4.8As part of the application form businesses will need to provide the following rmation??Evidence Required???Comment??Payment details?Copy of bank statement clearly showing bank account name, business address, sort code and account number.? This should be no more than 2 months old.?This must match the name of the business or individual listed on the business rates bill or lease/mortgage agreement.??Evidence of trading on or before 1 December 2020??This will be done by way of self-declaration on the online application form?and verified using other evidence provided as part of your application.?For businesses that are not rated we reserve the right to ask for additional evidence if required.?Evidence of rateable value (if applicable)?NNDR account number.??Evidence of rental/lease or Commercial Mortgage or?loan?costs, Council Tax for B&Bs, or other fixed?premises?related costs???A copy of relevant page of your current lease agreement, commercial mortgage?/ loan?agreement, insurance policy, Council Tax, self- assessment tax return?This must clearly show the financial contribution you are required to make as part of the agreement.??For businesses without a business rating:?Evidence that confirms the financial effect due to the impact of the latest restrictions imposed.?This could be in the form of documentation that shows trading income as compared to the same period in 2019/2020 or (for supply chain businesses) documentation that shows the percentage of business derived from businesses in the hospitality, leisure, tourism or accommodation sectors.?This must show how your business is being severely impacted by the current restrictions.Confirmation of eligibility under State aid rules??This will be done by way of self-declaration on the online application form.???If you are unsure whether State?Aid applies to your business, you will need to seek independent legal advice.???5. Payments?5.1Allerdale Borough Council, will receive the funding from Government and be responsible for making payments to businesses. The council will limit the total awards to the level of funding available from Central Government. 5.2Grant funding will be issued to Local Authorities in 14 day payment cycles. The Council entered LCAL 2 restrictions on 2 December 2020. 5.3The Council will determine the payment schedule and timings for these grants to businesses but it is expected that these will be made fortnightly in most circumstances.5.4Payments will be made by BACS direct to the applicant’s bank. Applicants?must provide a copy of their most recent bank statement clearly showing bank account name, business address, sort code and account number. ?This must match the name of the business or individual listed on the evidence provided for the fixed premises-related costs.?5.5The Government will not accept deliberate manipulation and fraud – and any business caught falsifying their records to gain additional grant money will face prosecution and any funding issued will be subject to claw back, as may any grants paid in error.?State Aid?5.6The United Kingdom left the EU on 31 January 2020, nonetheless under the Withdrawal Agreement the State aid rules continue to apply during a transition period, subject to regulation by the EU Commission. The Local Authority must be satisfied that all State aid requirements have been fully met and complied with when making grant payments, including, where required, compliance with all relevant conditions of the EU State aid De-Minimis Regulation, the EU Commission Temporary Framework for State aid measures to support the economy in the?current COVID-19 outbreak, the approved Covid-19 Temporary Framework for UK Authorities, and any relevant reporting requirements to the EU Commission. These grants have been created to provide support to active businesses. Businesses will need to confirm they are not in liquidation in order to receive the grant. Some businesses that fail the ‘undertaking in difficulty’ test on 31 December 2019?are?also ineligible for payments under the COVID-19 Temporary Framework for UK Authorities.5.7The Council will require each business to confirm that by accepting the grant payment, the business confirms that they are eligible for the grant scheme, including that any payments accepted will?be in compliance with?State aid requirements.?Tax?5.8Grant income received by a business is taxable therefore funding paid under the Local Authority Discretionary Grants Fund will be subject to tax. Only businesses which make an overall profit once grant income is included will be subject to tax.?6. Right to Appeal?6.1Government has stated there is no appeals procedure for the scheme, and it is up to Local Authorities to apply the guidance as they see fit.?6.2The decision of the Council is?final,?however the Council will work with businesses who believe the wrong decision has been made due to missing information.??6.3The Council’s interpretation of this document is at its own discretion and it will be the final arbiter of the definitions contained within this policy.??6.4This scheme is not intended to cover all businesses that have not been included in the initial government grant scheme. There are other avenues of support that businesses have available through the other government schemes.??7. Data protection?7.1We will use your information to assess your application for financial support. We will confirm information about you and your account from credit referencing agencies to confirm account validity and your identity. If you provide false or inaccurate information, we will record this. All personal information will be processed in accordance with the terms of the General Data Protection Regulation. For full information on how any personal information we gather will be processed, please?visit our privacy policy?on our website.?7.2Data will also be shared with the Department for Business, Energy and Industrial Strategy for monitoring and evaluation purposes. This will include:Business NameBusiness addressBusiness email addressSize of business the grant relates toSectorUnique identifier (preferably Company Reference Number)Grant awardedAmount of grant paidDate grant paidGrant name8. Other Information?8.1The Government and the Council will not accept deliberate manipulation and fraud - and any business caught falsifying their records to gain grant money will face prosecution and any funding issued will be subject to claw back, as may any grants paid in error.??8.2The Council does not accept any liability for any issues that may arise for businesses because of applying for, receiving, or not receiving grant payments under this scheme.??8.3The council reserves the right to update or change this policy without notification or?prior warning?in the event that?the government updates or changes its guidance to us or in the event of an error or omission.????Version:?FINAL v1.0?Date:?8 January 2021?Review date:?12 February 2021? ................
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