3,759 business properties in Newham have already received grants as part of the Government's Small Business Grants Scheme. In total, more than £52,530,000 has made its way to small businesses in the area.
In recognition of the extraordinary pressures facing small businesses during the coronavirus outbreak, the Government launched the Small Business Grants Scheme, backed by £12.3 billion. The funding is provided to local authorities, who are then able to offer grants of up to £10,000 to small businesses, and up to £25,000 for eligible leisure, retail and hospitality businesses. Since the scheme's launch in March, £10.5 billion has already been paid out to 853,877 business properties across England, including 3,759 in Newham.
In total, Newham has been provided with £58,660,000, which could help as many as 4,273 businesses in the local area.
The Government is providing a huge and unprecedented package of support to help small businesses during the coronavirus outbreak, including:
- Helping to pay people's wages through the Coronavirus Job Retention Scheme. The scheme has so far supported 9.2 million jobs, at a value of £22.9 billion.
- Introducing the Coronavirus Business Interruption Loan Scheme to provide loans of up to £5 million, interest free for 12 months, to small businesses.
- Introducing the Bounce Back Loan Scheme, providing 100 per cent government-backed loans of up to £50,000 to small businesses which will be interest free for 12 months.
- Taking all retail, leisure and hospitality businesses out of business rates altogether for the next year.
- Helping small and medium-sized businesses with the cost of paying Statutory Sick Pay for employees off because of Covid-19.
Commenting, Nick Vandyke, the local Conservative candidate for the London Assembly, said:
This has been a hugely challenging time for businesses, especially for the smaller firms that are at the heart of our local community in East Ham.
It's hugely reassuring to know that the support announced by the Government has reached 3,759 businesses in Newham, and is helping to protect businesses and people's livelihoods.
The Government is determined to ensure that people get the support they need to do the right thing – to stay at home, protect our NHS and save lives – without having to worry about losing their jobs or not being able to pay their bills.
Business Secretary Alok Sharma said:
I am very grateful to local authorities who have been working flat out to ensure these vital funds get to hard-pressed small business owners. Government is doing everything we can to support individual councils and help ensure that these grants reach local firms as soon as possible. I urge everyone to keep working at pace to get the money where it is needed quickly.
- Providing grants to the smallest businesses to help them during the coronavirus outbreak. The Small Business Grants fund provides £10,000 grants, which do not need to be repaid, to businesses which are eligible for the Small Business Rate Relief Scheme (including those with a rateable value between £12,000 and £15,000 which receive tapered relief) or the Rural Rate Relief Scheme. (Department for Business, Energy and Industrial Strategy, News Story, 20 April 2020)
- Providing grants of up to £25,000 for retail, hospitality and leisure businesses. Any business that was eligible for a rates discount under the Expanded Retail Discount Scheme, and with a rateable value of less than £51,000 can receive support of up to £25,000. Those with a rateable value of up to £15,000 will receive £10,000, while those with a rateable value between £15,000 and £51,000 will receive £25,000. (Department for Business, Energy and Industrial Strategy, News Story, 20 April 2020)
- Nearly 615,000 small businesses have already been supported through these schemes. Local authorities have been provided with £12.3 billion to provide the grants. As of 26 April 2020, 614,181 business properties have already received a share of £7.60 billion. (Department for Business, Energy and Industrial Strategy, Transparency Data, 27 April 2020)
Further support provided to businesses:
- Helping businesses meet the costs of keeping their staff on their books throughout the coronavirus outbreak. The Coronavirus Job Retention Scheme allows firms to furlough workers, with the Government paying 80 per cent of employees' salaries, up to £2,500 a month until the end July, at which point the scheme will continue until August but with employees asked to contribute towards some of the salary costs, alongside Government. (HM Treasury, News Story, 20 April 2020)
- Launching the Self-Employed Income Support Scheme, to ensure people who work for themselves are getting the support they need. The Government will pay self-employed people who have been adversely affected by coronavirus a grant worth 80 per cent of their average monthly profits over the last three years, up to £2,500 a month, for three months. A second grant is available covering March to August, available at 70 per cent of average monthly profits. (HM Treasury, News Story, 29 May 2020)
- Introducing a new Bounce Back Loans Scheme – a 100 per cent government-backed loan scheme that enables small businesses to borrow up to £50,000 and access the cash within days. The scheme has been designed to ensure that small firms who need vital cash injections to keep operating can get finance in a matter of days. It will provide lenders with a 100 per cent guarantee for the loan – and pay any fees and interest for the first 12 months. No repayments will be due during the first 12 months. (HM Treasury, News Story, 4 May 2020)
- Setting up the Coronavirus Business Interruption Loan Scheme to help companies that need access to cash. Any viable business with a turnover of up to £45 million can apply for a loan of up to £5 million, and we have banned lenders from requesting personal guarantees for loans under £250,000. A Coronavirus Large Business Interruption Loan Scheme is also available to provide loans of up to £25 and 50 million for companies with a turnover above £45 million. (HM Treasury, News Story, 3 April 2020)
- Making grants available for the industries and small businesses which have been hardest hit by the coronavirus outbreak. We are providing grants of either £10,000 or £25,000 to businesses in the retail, hospitality and leisure sectors and which occupy properties with a rateable value of less than £51,000. (HM Treasury/Department for Business, Energy and Industrial Strategy, News Story, 1 April 2020)
- Offering a 12-month business rates holiday for sectors which are struggling with cashflow issues. All eligible businesses in the retail, hospitality and leisure sectors, as well as nurseries, estate agents and bingo halls, will pay no businesses rates from 12 months, from 1 April 2020. (HM Treasury, News Story, 17 March 2020)
- Launching a £1.25 billion package of support for innovative firms impacted by coronavirus, delivering important help that will protect some of the most dynamic sectors of our economy. The £1.25 billion support package will ensure businesses in some of the most dynamic sectors are protected. This includes a £500 million loan scheme for high-growth firms, called the Future Fund, and £750 million of targeted support for small and medium sized businesses focusing on research and development. (HM Treasury, News Story, 20 May 2020)
- Helping smaller companies with the costs of Statutory Sick Pay. We will provide SMEs with a grant to cover up to two weeks' sick pay per eligible employee who has been off work because of Covid-19. (HM Revenue and Customs/ Department for Work and Pensions, Press Release¸ 19 May 2020)
- Deferring VAT payments. Businesses will need to pay any VAT from 20 March through to the end of June – a deferral worth over £30 billion and open to all 2.3 million UK VAT registered businesses. The average benefit is expected to be worth £30,000 per business. (HM Treasury/Department for Business, Energy and Industrial Strategy, News Story, 20 March 2020)