Local restrictions support grant (open businesses)

The government is providing additional funding to allow us to support hospitality, leisure and accommodation businesses which were open but severely impacted by the local restrictions from 1 August to 4 November.

Businesses that were impacted by local restrictions imposed by the government from 1 August 2020 to 4 November 2020, before the new national lockdown on 5 November. This is a period of 96 days.

In line with government expectations, businesses which are eligible for the grant include:

• hotels
• hospitality sector; cafes, restaurants, pubs, bars and social clubs
• bed and breakfasts
• leisure and sport facilities
• small and micro businesses supplying food and beverages to the hospitality, accommodation and leisure sector.

See the full list of eligible businesses. Please note, premises usually used mainly as a takeaway are not eligible.

Your business must also:

• have been occupied and trading as usual from 1 August 2020 to 4 November 2020;
• be in our rating list as at 1 August 2020 or share space with other businesses in rated property; and
• not be in administration, insolvent, or have a striking off notice made against it.

If any of the following apply to your business, you cannot apply for this grant:

• You were not trading 1 August to 4 November.
• Your business is a nightclub or adult entertainment venue, subject to national closures. More information is available at GOV.UK
• You operate as an 'Airbnb' type accommodation business.
• The main purpose of your business premises is a takeaway service.
• You operate from home.
• You have reached the state aid limit (see state aid section below).

This scheme will initially run until April 2021, with a government review in January 2021. If Leicester moves into a different tier during this period, the grant scheme will be updated through government guidelines.

If so - and you pay business rates directly to Leicester City Council - you may be able to to apply for this grant and the local restrictions support grant (closed businesses).

Businesses that do not pay rates directly to us will be funded from a different scheme and do not need to make another application.

We will also make payments that cover the lockdown period. However, these will be funded from a different scheme and you do not need to make another application.

Should Tier 2 or 3 local restrictions be put back in place at the end of the national lockdown and businesses are permitted to reopen, periodic payments will once again be made under the LLRG (open) scheme. Businesses will not need to reapply.

Payments will be based on the rateable value of the business premises on the date local restrictions began, and are as recommended by the government:

Eligible businesses occupying properties with a rateable value of £15,000 or under, or businesses sharing space

• Grants of £934 per 28-day period.
• Pro-rata for Leicester 96 days to 4 November= £3,200.

Eligible businesses occupying properties with a rateable value above £15,000 and below £51,000

• Grants of £1,400 per 28-day period.
• Pro-rata for Leicester 96 days to 4 November = £4,800.

Eligible businesses occupying properties with a rateable value of £51,000 and above

• Grants of £2,100 per 28-day period.
• Pro-rata for Leicester 96 days to 4 November = £6,600.
  
  

Please note: you may be eligible for more than one type of business grant. Please see our business grants page for further details.

Businesses can choose to spend the grants as they wish. The government expects that businesses will use the grants to cover high fixed property-related costs.

Grant income received by a business is taxable. Therefore, funding paid under this scheme will be subject to tax.

Only businesses which make an overall profit once grant income is included will be subject to tax.

Businesses must ensure that by receiving a grant they will not be in breach of state aid thresholds. A declaration is required when applying for a grant.

In summary, grants can be received under the existing De Minimis rules, provided doing so does not exceed the rolling three-year €200,000 threshold. Payments made where the De Minimis threshold has been reached should be paid under the Covid-19 Temporary Framework for UK Authorities (threshold €800,000).

Additional rules apply for businesses that are 'an undertaking in difficulty'. The government provides more detailed information at www.gov.uk.

Businesses in any doubt should take their own legal advice.

When you apply, you will need to show:

• applicant's ID
• eligibility
• business bank account details
• a summary of how the business has been severely impacted – for example percentage loss of income, trading losses, staff furloughed
• the sector in which the business operates and the number of employees
• your VAT registration number, if registered for VAT;
• your company registration number if you are a limited company, or
• your self-assessment/partnership number, national insurance number, unique taxpayer reference, or registered charity number.
• if the business does not pay rates directly to the council, evidence of a lease or licence.

Applications should be made online.

• Please apply for the first round of grants (covering period to 4 November) as soon as possible.
• Applications will remain open for at least four weeks from 26 November.
• You can still apply after that date, but the grant may then apply to the current period and not be backdated.
• We will make any future 28-day payments automatically towards the end of the period. You will not need to apply again.

The grant will be paid as soon as possible after we receive your application.

There is no right to appeal and the council's decision is final.

We use 'Spotlight', the government’s tool to manage grants and counter fraud. This helps us to check the process both before and after payments, and to identify high-risk payments. We also work jointly with other councils and government departments to prevent fraud.

Any business caught falsifying their records to gain grant money will face prosecution. Any funding issued will be subject to claw back, as may any grants paid in error.

We also reserve the right to use any details submitted by businesses to check against national records and databases, to highlight any potentially fraudulent activity.