Additional Restrictions Grant

Introduction – support for business during lockdown

In response to the second national lockdown, commencing Thursday 5 November 2020, the Government announced funding support to help businesses that are either required to close or would be severely impacted by the restrictions.

Darlington Borough Council have been provided with funding from the Government to distribute Local Restrictions Support Grants and Additional Restrictions Grants.

Additional Restrictions Grant

The Government has provided funding to support businesses who have been severely affected by the national and Local Covid Alert Tier 3 restrictions and are not eligible to claim a grant under the other available schemes. 

This scheme covers the period from 5 November 2020 to 15 February 2021.

Which businesses will qualify?

Businesses must be able to demonstrate that they have been severely impacted by Covid-19 (severely impacted is considered to be at least a 30% decrease in income).

An eligible business must be able to demonstrate that:

  • It was open and trading as usual on 4 November 2020, and
  • It is based in Darlington, and
  • It has fixed ongoing business costs (minimum £200 per month including, but not limited to rent; commercial mortgage; insurance; service charges etc.), and
  • It has not have received grant support through the LRSG (Closed) and LSRG Closed Tier 3 schemes.

Applications are invited from the following types of business:

Category 1

Hospitality, Leisure and non-essential retail/personal care and close contact service businesses that are required to close or substantially close but occupy premises where the landlord is liable for the business rates but can demonstrate on-going fixed overheads and costs.

Category 2

Businesses in the hospitality and leisure supply chain, for example bakeries, butchers, wholesalers, breweries and drinks producers, events suppliers, for example, liable for business rates where they can demonstrate that at least 50% of their income is derived from supplying the hospitality and leisure sector.

Category 3

Businesses in the hospitality and leisure supply chain that are outside of the rates system but can demonstrate on-going fixed overheads that are effectively closed. Fixed costs may include rent, utilities registered to a business premises, business insurance, for example. Applicants must demonstrate that at least 50% of their income is derived from supplying the hospitality and leisure sector.

Category 4

Small independent essential retail businesses that can remain open and are liable for business rates, but where they have been severely impacted by the restrictions.

Category 5

Market traders with regular pitches in Darlington, who do not sell essential goods as outlined in government legislation. Market traders will be paid a proportion of the 28-day grant value.

Businesses NOT eligible for support:

  • Businesses which were not trading at 4 November 2020
  • Business who have received either the Local Restrictions Support Grant (Closed) or (Closed - Tier 3) financial support
  • Businesses which have already received grant payments that equal the maximum levels of State aid permitted under the de minimis and the Covid-19 Temporary State Aid Framework.
  • Businesses that are able to continue to trade during the local lockdown period and can operate their services effectively remotely are not eligible.
  • Businesses being operated from home where there are no other non-domestic premises costs.
  • Businesses that have chosen to close but are not required to.
  • For the avoidance of doubt, businesses that are in administration, insolvent or where a striking-off notice has been made, are not eligible for funding under this scheme.
  • Businesses whose primary trade is take-away.
  • Professional & Financial Services businesses.
  • Healthcare service providers.
  • Property related businesses such as property developers, building companies, buy-to-let businesses, estate agents and landlords (commercial and domestic).
  • Garages (sale, repair or maintenance) of motor vehicles

Payments – How much?

The Government have provided clear guidance on the value of grants to be awarded.

An eligible business may receive (subject to the availability of funds) a payment if the business occupies a property with a rateable value (or if there is no rateable value a proxy such as annual rent) as follows:

  • Rateable value (or proxy) of £15,000 or below, a grant up to £934 per 28 day period
  • Rateable Value (or proxy) between £15,000 - £51,000, up to £1,400 per 28 day period
  • Rateable value (or proxy) of £51,000 and above, up to £2,100 per 28 day period 

The Council will look at all cases individually and has discretion to make exceptional payments to businesses and sectors who are deemed significant to the local economy and where the amounts described above would have minimal impact to support or where no previous Grant aid has been given. Written justification and application is required outlining the request for the exceptional payment. These grants are up to and capped at £25,000 and this will cover a two-month period.

The Council reserves the right to adjust the value of the grant payments or withdraw the scheme should the Government funding provided be insufficient to meet demand.

State Aid

This grant is subject to State Aid limits. The maximum level of aid that a company may receive is €800,000 under the terms of the European Commission’s Covid-19 Temporary Framework, this is in addition to the existing EU State Aid De-Minimis Regulations which allows €200,000 to any one organisation over a three year period.

Tax implications

Grant income received by a business is taxable and will need to be included as income in the tax return of the business.

Applying for a grant

As part of the application process, businesses will be required to explain the detrimental impact that the new national lockdown has had on their operations and demonstrate the subsequent losses.

To make an application for support please use the application form here.

Additional Restrictions Grant online form

As this is a discretionary scheme there is no right of appeal, the Councils decision is final.

The Council reserves the right to vary the terms of the scheme at any time should it be necessary to do so.