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Local Restrictions Support Grant Tier 4

On the 30th December 2020, the Darlington Borough Council area came under Tier 4 restrictions effective from 31st December 2020 and on the 5th January 2021 we entered a period of National Lockdown.

Under these restrictions a significant number of businesses are mandated to close to manage the spread of coronavirus. These businesses include:

  • Non-essential retail, such as clothing and homeware stores, vehicle showrooms (other than for rental), betting shops, tailors, tobacco and vape shops, electronic goods and mobile phone shops, and market stalls selling non-essential goods. These venues can continue to be able to operate click-and-collect (where goods are pre-ordered and collected off the premises) and delivery services.
  • Hospitality venues such as cafes, restaurants, pubs, bars and social clubs; with the exception of providing food and drink for takeaway (before 11pm), click-and-collect, drive-through or delivery.
  • Accommodation such as hotels, hostels, guest houses and campsites. Except for specific circumstances, such as where these act as someone’s main residence, where they cannot return home, for homeless people, or where it is essential to stay there for work purposes.
  • Leisure and sports facilities such as leisure centres and gyms, swimming pools, tennis and basketball courts, golf courses, fitness and dance studios, climbing walls, archery, driving, and shooting ranges.
  • Entertainment venues such as theatres, cinemas, museums and galleries, amusement arcades, bingo halls, soft play centres and areas, water parks.
  • Personal care facilities such as hair, beauty, tanning and nail salons. Tattoo parlours, spas, massage parlours, body and skin piercing services must also close. It is also prohibited to provide these services in other peoples’ homes.
  • Community centres and halls must close except for a limited number of exempt activities. Libraries can also remain open to provide access to IT and digital services - for example for people who do not have it at home - and for click-and-collect.

To support those businesses that are legally required to close, certain grants are being made available.

Tier 4 – Payment Cycle 2

The second payment cycle covers the period 16 February 2021 to 31 March 2021:

  • For businesses with a rateable value of exactly £15,000 or under - £2,096
  • For businesses with a rateable value over £15,000 and less that £51,000 - £3,143
  • For businesses with a rateable value of exactly £51,000 or above - £4,714 

Subsidy Allowance formerly State Aid

This scheme is covered by 3 subsidy allowances:

  • Small Amounts of Financial Assistance Allowance – you’re allowed up to £335,000 (subject to exchange rates) over any period of 3 years
  • COVID-19 Business Grant Allowance – you’re allowed up to £1,600,000
  • COVID-19 Business Grant Special Allowance - if you have reached your limits under the Small Amounts of Financial Assistance Allowance and COVID-19 Business Grant Allowance, you may be able to access a further allowance of funding under these scheme rules of up to £9,000,000, provided certain conditions are met

Grants under these 3 allowances can be combined for a potential total allowance of up to £10,935,000 (subject to exchange rates).

For further information see the Subsidy control state aid document [pdf document]

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.

To make a claim for support please use the:

Government grant Support to Business Tier 4 form

You will need your Business rates payment reference which can be found on the top left hand corner of your most recent bill.

If your business occupies a property that is not registered for business rates, or has not been legally mandated to close, please do not try to apply for the above grant.

This will take resource away from where it is most needed and will delay any grant payments from being made.