Local Restrictions Support Grant (Open) Tier 2 application information
Richmondshire District Council are administering the Local Restrictions Support Grant (Open) for business in our district area on behalf of the government.
On Thursday 22 October, the Government announced additional funding to support businesses under restrictions in Tier 2 or Tier 3. This is support for businesses that are not legally required to closed but which are severely impacted by the localised restrictions on socialising put in place to manage coronavirus and save lives. The guidance for local authorities on paying grants during periods of local restrictions was subsequently updated by the Government on 9 December 2020.
This grant is available for the period from 00:01 on 2 December 2020 when Richmondshire was placed in Tier 2 of the Government's local restrictions. For the period of national restrictions from 5 November to 1 December, the LRSG (Closed) Addendum rules applied.
The Local Restrictions Support Grant (Open) is aimed at hospitality, hotel, bed and breakfast and leisure businesses. Local authorities have discretion as to how to award grant funding to individual businesses within the overall setting of the funds provided by the Government. This funding was previously provided on a rolling 28-day basis, but following the national lockdown between 5 November and 2 December, it will be provided in a rolling 14-day eligibility cycle for as long as Tier 2 or Tier 3 restrictions apply.
Richmondshire will consider the level of fixed costs faced businesses, the number of employees, whether they are unable to trade online and the consequent scale of coronavirus losses.
Businesses must have been trading the day before local restrictions came into force to be eligible to receive funding under this scheme. As local restrictions were preceded by national 'lockdown' measures, requiring the closure of businesses that are otherwise eligible, it is accepted that those businesses are still trading.
Business in administration, are insolvent or where a sticking-off notice has been made are not eligible for funding under this scheme
The value of the payment will be dependent on the rateable value of the property:
Eligible other businesses who do not have a rateable premises assessed by the Valuation Office Agency (VOA) as 1 December 2020 (these businesses are distinct from businesses that share premises on a full time basis) will receive a payment of £350 per 14-day period.
Eligible businesses occupying a property with a rateable value of £15,000 or less on 2 December 2020 or where they do not occupy a rateable property and a defined as a micro business will receive a payment of £467 per 14-day period.
Eligible businesses occupying a property with a rateable value of over £15,000 but less than £51,000 on 2 December 2020 or where they do not occupy a rateable property and a defined as a small business will receive a payment of £700 per 14-day period.
Eligible businesses occupying a property with a rateable value of £51,000 or more on 2 December 2020 or where they do not occupy a rateable property and a defined as a medium or large business will receive a payment of £1,050 per 14-day period.
This grant scheme is fully funded by central government and the funds will be administered by Richmondshire District Council in accordance with the guidance issued by the Department for Business, Energy and Industrial Strategy (BEIS). To view the government details on the scheme, please view the Local Restriction Support Grant (Open) scheme guidance.
Please read the Richmondshire District Council’s Local Restrictions Support Grant (Open) scheme policy.
Before you start to complete this grant payment information request, please have to hand your:
Business rate / council tax account number (where applicable - this can be found on your business rate / council tax bill)
Rateable value of the property (where applicable - this can be found on your business rate bill)
Name on business bank account
Business bank account number
Business bank sort code
Business VAT registered number
Business company registration number
Fields with an asterisk ( * ) are mandatory answers that need to be completed so that you are able to submit the form.
If you are liable for business rates on 4 November 2020 but have not informed the council of this, you should supply your details by sending an email to local.taxation@richmondshire.gov.uk so that we can create your business rate account number.
Eligibility criteria
Please note - the LRSG (Open) grant is not intended to act as an income replacement supplement but is instead focused on addressing fixed business costs that continue to be incurred by the business during the time when Tier 2 or Tier 3 local restrictions are in force.
In order to be eligible for support under LRSG (Open) applicants must provide evidence that they have fixed business costs which have not been waived and evidence also must be supplied which supports the fact that they have also suffered a significant financial loss during each 14 day period of the Tier 2 or Tier 3 restrictions.
This funding is available for businesses that have been forced to close, where companies are not covered under the Local Restrictions Support Grant (Closed) Scheme but have significant fixed costs* which are not related to employment.
Businesses significantly affected** by business closures caused by local restrictions announced on 23 November and that come into force on the 2 December 2020. This grant will not be administered for periods of impact before these dates. These businesses will include those that provide products and services to the retail, hospitality, and leisure sectors, or businesses in the events sector, that have been forced to close during the second national lockdown.
Businesses with a registered address in the Richmondshire District Council area will be eligible for this scheme. The business will need to be trading*** within Richmondshire. Where a business is registered in another council area (although has a presence in Richmondshire) the council will take a discretionary view on a case-by-case basis.****
The business must have been actively trading on and before the 4 November 2020.
The Local Restriction Support Grants will be paid subject to State Aid regulations, meaning the business needs to check that they comply with State Aid rules and inform Richmondshire District Council accordingly prior to payment being made. If State Aid rules are breached the responsibility lies with the applicant and, in line with the legislations, the council can take action to recover the funding.
Top up grants for the Local Restriction Support Grant scheme will not be paid out to businesses except in exceptional circumstances where this is essential to support the wider local economy. Where businesses feel they fit these criteria, contact with the council will need to be made prior to an application being accepted.
* Fixed costs - Any costs relating to the operation of the business that cannot be cancelled during this period. These could include property costs such as rent for non-rateable commercial premises, utilities, etc. Fixed costs do not include employee cost.*****
** Significant impact - A statement will be required from the company showing that at least 50% of their revenue comes from businesses required to close within the defined sectors in point 2 above, and that this will have an impact on their income of at least 30%.
*** Trading - A business that even if not registered within the district on Companies House, has a presence in the area and is clearly trading from an address within Richmondshire.
**** Other businesses who do not have rateable premises assessed by the Valuation Office Agency as of 1 December 2020 - Other businesses may be paid by Richmondshire District Council where their home address or commercial premises address are in the district and/or where they regularly attend markets or other regular formal gatherings in this district. Any award will be based on a payment by business site rather and not based on the number of stalls or standings etc that they use at the site.
*****Employee costs – Any costs that are met by the business after having taken account of any government grants to take account of payments to the business from the Government’s furlough scheme or Self Employed Income Support Scheme or any other employee related grants.
Who will receive the funding?
The company or sole trader who will receive the grant must have been trading the day before restrictions came into force i.e. on the 4 November 2020.
Rate relief shall not be awarded in any circumstances where it appears that an award will result in the ratepayer receiving state aid that is above the current de minimus level of €800,000 aid in a three year period (consisting of the current financial year and the two previous financial years). Please visit the Official European Union website for more temporary framework for State aid measures.
Please note - The government and local authority 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.
What happens next:
If the criteria has been met, payment will be made to the bank account that you have provided on this form.
Please note Richmondshire District Council is required to follow this guidance and conduct activity to provide assurance that the grants have been paid out in line with the eligibility and State aid conditions for this scheme. We must continue to ensure the safe administration of government grants and that appropriate measures are put in place, pre-award, to mitigate against the increased risks of both fraud and payment error. In this respect, we will supplement existing controls with digital tools to support efficient, appropriate and accurate grants awards. The Government has provided councils with access to their anti-fraud tools such as Spotlight and National Fraud Initiative (NFI) to support the administration of Covid-19 emergency grants.
What you'll need to provide:
Your contact details
Business details (including business rate / council tax account number and rateable value of your property where applicable)
Business bank details (including VAT and Company Registration Number if applicable)
Proof the business was trading on the 4 November 2020 (for example - receipts, invoices)
Proof of ongoing commercial fixed building costs (for example - rent invoice, bank statement)
Proof have suffered a significant fall in income (set of accounts from October to December 2019 and October to December 2020)
Your privacy
The information you provide on this application form will be used to facilitate your business grant application request. The information will only be disclosed to individuals in the Council who require it to complete your request. Please be aware that your information may be passed to the Council’s Counter Fraud Service and/or the Police if we suspect any fraudulent activity. We are also required to refer claim information to HMRC / Government for checking for potential fraudulent activity. For more information about how we use your personal data please see the Council’s Privacy Notice on its website.
The Government has determined that this scheme runs until April 2021.
