CABINET

Covid-19 Business Grant Policy 2020-21

20th May 2020

Individual Cabinet Member DecisionCouncillor Anne Whitehead

Report of Head of Shared Service (Revenues & Benefits)

PURPOSE OF REPORT

This report seeks approval of an overarching Covid-19 Business Grant Policy, to cover three new grant schemes introduced by Government in response to the pandemic. The policy encompassing 3 schemes, sets out the criteria provided by Government, to determine eligibility and outlines the approach the Council will take in determining whether an award should be paid: The 3 Schemes are:

⦁ Scheme 1 - Small Business Grant Fund⦁ Scheme 2 (A&B) - , Retail, Hospitality and Leisure Grant Fund⦁ Scheme 3 - Local Authority Discretionary Grant Fund

Key Decision

x Non-Key Decision Referral from Cabinet Member

Date Included in Forward Plan

This report is public.

RECOMMENDATIONS OF COUNCILLOR WHITEHEAD:

⦁ That the Covid-19 Business Grant Policy as set out at Appendix A be approved, effective from April 2020 (Option 1 as set out in the report).

⦁ That in the event that Option 1 is approved, the S151 Officer be authorisedto make f inal amendment to the Policy in agreement with the Cabinet Member, to accommodate evolving guidance and technical FAQ’s in relation to Scheme 3, and to make all other necessary arrangementsfor its implementation with immediate effect.

1 BACKGROUND

⦁ In response to Coronavirus, Covid-19, the Government announced there would be support for small businesses, and businesses in the retail, hospitality and leisure sectors. This support takes the form of three grant funding schemes introduced for the financial year 2020/21, the Small Business Grant Fund

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(Scheme 1), the Retail, Hospitality and Leisure Grant Fund (Scheme 2) and the Local Authority Discretionary Grant Fund (Scheme 3).

⦁ The Government, will, in line with eligibility criteria set out in the policy, re-imburse local authorities that pay grant to eligible businesses, using a grant under Section 31 of the Local Government Act 2003. For scheme 3, an amount equivalent to 5% of the utilised funding for the Small Business, Retail, Hospitality and Leisure grant schemes will be made available for the Local Authority Discretionary Grant Fund.

⦁ The Government has provided guidance in terms of the operation and delivery of any policy, to support local authorities in administering their business grant schemes. The Guidance Note covering Small Business Grant (Scheme 1) and Retail, Hospitality and Leisure Grant (Scheme 2) is provided on the following link:https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/881040/business_support_grants-local_authorities_guidance.pdf

⦁ All schemes have an eligibility date of 11th March 2020 and the person who, according to the billing authority’s records was the ratepayer in respect of the hereditament, or in the case of Discretionary Grants the business owner, will receive the funding.

⦁ Under the Small Business Grant Fund (Scheme 1), all businesses in England in receipt of either Small Business Rates Relief or Rural Rates Relief in the business rates system will be eligible for a payment of £10,000 in line with the eligibility criteria.

1.6 Under the Retail, Hospitality and Leisure Grant (“RHLG”) (Scheme 2), businesses in England that would have been in receipt of the Expanded Retail Discount (which covers retail, hospitality and leisure) on 11 March 2020, with a rateable value of less than £51,000 will be eligible for the following cash grants per property.

1.7 Eligible businesses in the RHLG sectors with a property that has a rateable value of up to and including £15,000 will receive a grant of £10,000, in line with the eligibility criteria. Eligible businesses in these sectors with a property that has a rateable value of over £15,000 and less than £51,000 will receive a grant of £25,000, in line with the eligibility criteria. At the same time all eligible businesses will also benefit from a 100% business rate holiday covering the financial year 2020/2021.

1.8 RHLG sector businesses with a rateable value of £51,000 or over are not eligible for this scheme. Also, businesses which are not ratepayers in the business rates system are not included in this scheme.

1.9 In addition to these two grant funding schemes, the Council is set to receive a further funding allocation towards a Local Authority Discretionary Grant Fund (Scheme 3), introduced to support small and micro businesses with high fixed property-related costs which have suffered a significant fall in income due to COVID-19 and that aren't eligible for the two existing grant schemes (1 and 2). The Government recognises that economic need will vary across the

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country, so have set some national criteria for the fund, whilst allowing local authorities to determine which cases to support within those criteria. Detailed guidance can be found under the following link:https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/887239/Local_Authority_Discretionary_Grants_Fund_-_guidance_for_local_authorities_-_version_2.pdf

1.10 Under Scheme 3, the Council will follow Government guidance and, in the first instance, open the scheme to the following types of businesses:

⦁ Small businesses in shared offices or other flexible workspaces. Examples could include units in industrial parks, science parks and incubators which do not have their own business rates assessment;

⦁ Regular market traders with fixed building costs, such as rent, who do not have their own business rates assessment;

⦁ Bed & Breakfasts which pay Council Tax instead of business rates; and

⦁ Charity properties in receipt of charitable business rates relief which would otherwise have been eligible for Small Business Rates Relief or Rural Rate Relief.

1.11 It is for individual local billing authorities to determine their Covid-19 Business Grant Policy for scheme 3, in line with government guidance. In the first instance, the Council Policy is closely following the guidance in order to contain grants within the 5% allocation. As the take-up of scheme 3 is unknown but the funding is capped, the following features are proposed:

⦁ The scheme will be opened during week commencing 25 May to the business types set out in 1.10 above

⦁ An initial payment of £2,000 will be made to those businesses which meet the eligibility criteria set out in 1.9

⦁ A closing date for applications will be set to allow for analysis of take-up and spend

⦁ Following the closing date, a position statement will be produced detailing the number of eligible businesses in each category that have been paid the initial payment. Cabinet will be able to use this information to determine how to disburse any remaining allocation. This might be to existing eligible businesses or new categories of businesses (the guidance allows for this flexibility) or a combination of the two.

2 PROPOSAL DETAILS

2.1 Drawing on Government Guidance, Appendix A sets out a Covid-19 Business Grant Policy to provide much needed support to eligible businesses in the area.

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3 DETAILS OF CONSULTATION

3.1 There is no formal requirement for consultation as the Council is obliged to follow Government Guidance.

⦁ 4 OPTIONS & OPTIONS ANALYSIS (INCLUDING RISK ASSESSMENT)⦁ ⦁ 4.1 Option 1 – Agree to the proposal as recommended

The draft policy is working well and sets out a formal approach to distributing this new business grant funding, providing guidance for officers and a consistent platform in dealing with applications. The approach adopted seeks to maximise use of the grant in an open and equitable way, drawing on government guidance, and therefore risks associated with any challenge are considered small and manageable.

4.2 Option 2 – Suggest amendments to the proposed policy

Any amendments would need to have regard to government guidance, and allow extra time for re-consideration of an amended policy. There is some reputational risk associated with further delay as the Government are keen for billing authorities to pay the grant as soon as possible.

4.3 Option 3 – Do nothing and refuse all applications.

A blanket policy of refusal is not an option.

5 OFFICER PREFERRED OPTION AND COMMENTS

5.1 It is recommended that Option 1 be approved. The policy enables a formal approach to decision making, with criteria in line with government guidance, offering financial support to business across the area.

6 CONCLUSION

6.1 The proposals as set out are considered to be fair and reasonable, as a way to distribute available funds, drawing on Government guidance.

⦁ RELATIONSHIP TO POLICY FRAMEWORK

The report is in response to the Government measures introduced to support the business community through the Covid-19 pandemic crisis. The Policy compliments the Councils own plans to create a local support package to combat the pressure a business may find itself under during the coronavirus pandemic.

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CONCLUSION OF IMPACT ASSESSMENT(including Health & Safety, Equality & Diversity, Human Rights, Community Safety, HR, Sustainability and Rural Proofing):

⦁ The policy demonstrates the commitment to support smaller businesses and those in the retail, hospitality and leisure sector, in the area through the distribution of grants in line with Government Guidance. The policy is expected to benefit in excess of 3,000 businesses with total grant awarded in the region of £37.6m. Businesses eligible for Expanded Retail Relief also benefit by way of a 100% business rate holiday for 12 months. An Equality Impact Assessment is attached at Appendix B.

⦁ LEGAL IMPLICATIONS

⦁ The Chancellor in his budget speech on 11 March 2020 announced initial support for business, to protect against the economic emergency caused by the Covid-19 pandemic. The level of this support was increased in a statement from the Chancellor on 17 March 2020. This support takes the form of three grant funding schemes in financial year 2020/21, administered by local authorities, who are responsible for making payments to businesses, who meet the eligible criteria within the policy.

⦁ Providing grants to businesses amounts to State Aid. The United Kingdom left the EU on 31st January 2020, nonetheless under the withdrawal Agreement the State Aid rules continue to apply during the transition period.

The Local Authority must be satisfied that all State Aid requirements have been fully met and complied with when making grant payments, including, where required, compliance with all relevant conditions of the EU State aid De-Minimis Regulation, the EU Commission Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak, the approved Covid-19 Temporary Framework for UK Authorities, and any relevant reporting requirements to the EU Commission.

FINANCIAL IMPLICATIONS

The Council has been allocated £37.6m to fund grant payments under the Small Business Grant Fund and the Retail, Hospitality and Leisure Grant Fund. The Government has promised a 5% uplift on this figure (approx £1.8m) to support small and micro businesses with high fixed property-related costs, that aren't eligible for the earlier grant schemes.

Expenditure will be re-imbursed using a grant under Section 31 of the Local Government Act 2003. It’s not expected that the introduction of this new policy will incur additional expenditure. However, if awards are made outside the framework of the Government guidelines, the Council runs the risk of incurring additional expenditure in these specific cases.OTHER RESOURCE IMPLICATIONS, such as Human Resources, Information Services, Property, Open Spaces:

No other implications

SECTION 151 OFFICER’S COMMENTS

⦁ The S151 Officer has contributed to this report.⦁

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MONITORING OFFICER’S COMMENTS

⦁ The Monitoring Officer has been consulted and has no further comments.

BACKGROUND PAPERS

⦁ N/A

Contact Officer: Adrian RobinsonHead of Shared ServiceTelephone: 01772 906023E-mail: a.robinson@preston.gov.uk

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Appendix A

LANCASTER CITY COUNCIL

COVID-19 BUSINESS GRANT POLICY2020/21

encompassingSMALL BUSINESS GRANT SCHEME (1)

RETAIL, HOSPITALITY & LEISURE GRANT SCHEME (2)

LOCAL AUTHORITY DISCRETIONARY GRANT SCHEME (3)

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April 2020 CONTENTS

SMALL BUSINESS GRANT SCHEME (1) & RETAIL, HOSPITALITY AND LEISURE GRANT SCHEME (2): 

⦁ Introduction

⦁ Grant Amounts

⦁ Eligibility Criteria

⦁ Exclusions

LOCAL AUTHORITY DISCRETIONARY GRANT SCHEME (3):

⦁ Introduction

⦁ Grant Amounts

⦁ Eligibility

⦁ Exclusions

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ADDITIONAL INFORMATION:

⦁ Claiming a Grant

⦁ State Aid

⦁ Scheme of Delegation

⦁ Review of Decision

⦁ Other Grant Conditions

⦁ Managing the Risk of Fraud

⦁ Effect on Council Finances

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SMALL BUSINESS GRANT & RETAIL, HOSPITALITY AND LEISURE GRANT SCHEMES (1&2)

1. Introduction 

In response to the Coronavirus, Covid‐19, the Government announced there would be support for small businesses, and businesses  in the retail, hospitality and  leisure sectors  in  the  form of  two grant  funding schemes  in Financial Year 2020‐2021; the Small Business Grant Fund (SBGF) and the Retail, Hospitality and Leisure Grant Fund (RHLGF).

⦁ Scheme  1  ‐ Small  Business  Grant  Fund  ‐ Hereditaments  included  in  this scheme are those which on the 11 March 2020 were eligible for relief under the business rate Small Business Rate Relief Scheme.

⦁ Scheme 2a ‐ Retail, Hospitality and Leisure Grant ‐ Hereditaments which on the  11 March  2020  had  a  rateable  value  up  to  and  including  £15,000  and would have been eligible  for a discount under  the business  rates Expanded Retail  Discount  Scheme,  had  that  scheme  been  in  force  for  that  date  are eligible for the grant.

⦁ Scheme 2b ‐  Retail, Hospitality and Leisure Grant ‐ Hereditaments which on the 11 March 2020 had a rateable value over £15,000 and less than £51,000 and  would  have  been  eligible  for  a  discount  under  the  business  rates Expanded Retail Discount  Scheme, had  that  scheme been  in  force  for  that date are eligible for the grant.

Full guidance notes can be found at https://www.gov.uk/government/publications/coronavirus‐covid‐19‐business‐support‐grant‐funding‐guidance‐for‐businesses

2. Grant Amounts 

The amount of Grant available for each Scheme is as follows:

⦁ Scheme 1 ‐ Small Business Grant Fund £10,000;

⦁ Scheme 2a  ‐ Retail, Hospitality & Leisure Grant £10,000;

⦁ Scheme 2b ‐ Retail, Hospitality & Leisure Grant £25,000;

For the avoidance of doubt:

⦁ Only one grant can be given in respect of any individual business premises

⦁ Only one grant can be awarded under the Small Business Grant Fund rules

⦁ Where any hereditament could receive an award under Scheme 1 or Scheme 2, only one grant will be awarded, and

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⦁ Both  ratepayer  and  business  premises  must  meet  the  eligibility  criteria shown within this policy. 

The grant does not need to be paid back and is designed to help business cope with the impact of COVID‐19. 

3. Eligibility Criteria 

Funding  is  to  be  provided  to  the  person who  according  to  the  billing  authority’s records was the ratepayer in respect of the hereditament on the 11 March 2020.

To claim grant, a business premises must have been eligible for the following reliefs on 11 March 2020: 

⦁ Small  Business  Grant  Scheme  (Scheme  1)  – receiving  Small  Business  Rates Relief (SBRR) or Rural Rate Relief (RRR)

⦁ Retail,  Hospitality  and  Leisure  Grant  Scheme  (Scheme  2  a&b)  – receiving Expanded Retail Discount – provided the rateable value of their premise(s)  is less than £51,000 

The Effective Date:

The effective date  for eligibility  is 11th March 2020 and,  in all  cases,  the  following government guidance applies at the effective date:

⦁ The hereditament must be shown in the Rating List as at 11th March 2020

⦁ Any changes to the Rating List (Rateable Value (“RV”) or hereditament) after 11 March 2020,  including changes which have been backdated to this date, should be  ignored  for  the purposes of eligibility.    Local authorities are not required to adjust, pay or recover grants where the rating list is subsequently amended retrospectively to 11 March 2020.

⦁ By exception,  in cases where  it was factually clear to the Local Authority on the  11 March  2020  that  the  rating  list was  inaccurate  on  that  date,  local authorities may withhold  the grant and/or award the grant, based on their view  of  who  would  have  been  entitled  to  the  grant  had  the  list  been accurate.  This  is  entirely  at  the  discretion  of  the  Local Authority  and  only intended to prevent manifest errors.    It  is not  intended  for ratepayers who subsequently challenge their RV.

⦁ Where a hereditament is exempt from rating as at 11 March 2020, no grant shall be payable.

⦁ If the property has a NIL RV as at 11 March 2020 no grant shall be payable 

Retrospective Adjustments:

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In cases where discretion is being considered, Officers will use the following guiding principles:

⦁ Cases will be considered on an individual basis 

⦁ Discretion can’t be used to make awards to businesses that are not covered by the general eligibility criteria

⦁ New  assessments  (not  created  from  the  split  or  merger  of  existing assessments),  yet  to  be  entered  into  the  Rating  List  (pre  11 March  2020), with no previous information or evidential proof provided, nor Visiting Officer awareness of occupation, will not be considered eligible for the payment of Grant.

⦁ Simple  failure  to  notify  of  a  relevant  change  prior  to  11 March  2020,  or ignorance of  the business rate system alone  is not considered a reasonable excuse when considering eligibility for the payment of grant.

⦁ Where  Retail,  Hospitality  and  Leisure  Grant  is  considered  appropriate, retrospective RV increases will be disregarded when determining the level of Grant payable.

Some  scenarios where  discretion may  be  considered  are  (subject  to  eligibility  for relevant reliefs – Small Business Relief or Expanded Retail Discount):

⦁ Where  someone  should be  the  ratepayer pre‐11 March  2020 but has only just told us they have moved in (provided the hereditament already exists in the Rating  List).   We will  seek evidence  to  confirm occupation  (perhaps by Planning or Building Control  information) and endeavour  to pay  the correct ratepayer.

⦁ Where we have already reported to the VOA that a change to the Rating List is  required but  the List has either not yet been altered or we have not yet processed the change.

⦁ Where we  already  hold  details  (pre‐11 March  2020)  that  a  change  to  the Rating List is required but it has not yet been reported to the VOA.

⦁ Splits  and Mergers  of  existing  rating  assessments, may  be  considered,  in circumstances where evidenced and proven beyond reasonable doubt to be a manifest error  in  the Rating List.   However,  splits  reported after  the event, where the  individual units stay within the same “ownership”, undertaken to take advantage of the scheme will not be considered. 

⦁ Zero  rated assessments which have a  rateable value  increase by VOA  for a period pre‐11 March 2020.

Unfortunately, in cases requiring and dependent upon action by the VOA, grant will not  be  considered  /paid  until  such  time  that  the  Rating  List  is  amended,  and businesses should be referred to Economic Development for further assistance with other available help (ie. Business Interruption Loans).

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Other Eligibility issues:

The  Expanded  Retail  Relief  Scheme  has  been  extended  to  also  cover  bingo  halls, estate agents and letting agencies.

Charities  receiving  Charitable  Rate  Relief  can’t  be  eligible  for  Small  Business  Rate Relief or Rural Rate Relief and therefore cannot be eligible under the Small Business Grants  Fund.  They may be eligible under  the Retail, Hospitality  and  Leisure Grant Fund.  Such charities should complete the online form at www.lancaster.gov.uk/rhl‐grant  and the Council will assess their case on an individual basis.

Properties in receipt of 100% Discretionary Rate Relief on 11 March 2020 that meet the eligible criteria within the Expanded Retail Relief Scheme or Small business Rate Relief Scheme, will qualify for the grant, unless State Aid rules apply.

Properties falling within the Nursery scheme are not eligible for a grant, unless they were  in  receipt of  Small Business Rate Relief or Rural Rate Relief  as of  11 March 2020.  

The  Council  is  responsible  for making  payments  to  businesses  and will  interpret legislation  and  guidance  in  exercising  its  judgement  to  determine whether or not eligibility is met as part of this decision making process.

4. Exclusions 

Exclusions to Small Business Grant Fund (Scheme 1): 

⦁ Hereditaments occupied for personal uses. Examples of where there may be personal  use  include  private  stables  and  loose  boxes,  beach  huts  and moorings. 

⦁ Car parks and parking spaces. 

⦁ Businesses which as at 11 March were  in  liquidation or were dissolved will not be eligible.

⦁ Businesses  which  are  not  ratepayers  in  the  business  rate  system  are  not included in this scheme.

Exclusions to Retail, hospitality & Leisure Grant (Scheme 2 a&b) 

⦁ Recipients  eligible  for  the  Small  Business Grant will  not  be  eligible  for  the Retail, Hospitality and Leisure Grant. 

⦁ Hereditaments occupied for personal uses. Examples of where there may be 

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personal  use  include  private  stables  and  loose  boxes,  beach  huts  and moorings. 

⦁ Car parks and parking spaces. 

⦁ Businesses which as at 11 March were  in  liquidation or were dissolved will not be eligible. 

⦁ Hereditaments with a rateable value of £51,000 or over. 

⦁ Only one grant may be awarded per hereditament.

⦁ Businesses  which  are  not  ratepayers  in  the  business  rate  system  are  not included in this scheme. 

Where a Council/authority (such as a parish council) runs a facility, such as a public convenience,  or  a  venue  for  hire  (village  hall/assembly  rooms  for  example), government guidance is clear and states that in line with restrictions in the Expanded Retail  Discount  scheme,  billing  authorities  may  not  award  either  grant  to themselves, or another precepting authority. 

LOCAL AUTHORITY DISCRETIONARY GRANT SCHEME (3)

5. Introduction 

In response to the Coronavirus, COVID‐19, the Government announced there would be support for small businesses, and businesses  in the retail, hospitality and  leisure sectors, delivered through the Small Business Grant Fund (Scheme 1) and the Retail, Leisure and Hospitality Grant Fund (Scheme 2). 

This additional fund (Scheme 3)  is aimed at small businesses who were not eligible for  the  Small Business Grant  Fund or  the Retail,  Leisure  and Hospitality  Fund.    In recognising that economic need will vary across the country, the Government have set some national criteria for the fund, whilst allowing local authorities to determine which cases to support within those criteria.

⦁ Scheme  3  – Local  Authority  Discretionary  Grant  Fund  ‐ Hereditaments included in this scheme are those which on the 11 March 2020 were eligible for relief under the criteria detailed below, had that criteria been in force on that date.

The full guidance note can be found on the following link:https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/887239/Local_Authority_Discretionary_Grants_Fund_-_guidance_for_local_authorities_-_version_2.pdf

6. Grant Amounts

The Council will work within budget when making awards and adapt its approach to local circumstances, providing support for small and micro‐businesses that meet the 

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eligibility criteria.

Grants awarded by  the Council  from  this discretionary grant  fund will be capped at a maximum £10,000. In the first instance, it is not possible to determine the level of grant allocation to each eligible business, as the Council’s allocation is fixed and the number of eligible businesses is unknown. The Council  is keen  to balance  the need to pay eligible businesses as soon as possible with  an  equitable  consideration  to  ensure  that no  eligible business misses out  and  a clarity  consideration  to  ensure  that  the  features  of  the  policy  are  clear  and understandable. In order to establish this balance, scheme 3 has the following features:

⦁ The scheme will be opened during week commencing 25 May to the business types set out in section 7 below

⦁ An initial payment of £2,000 will be made to those businesses which meet the eligibility as set out in section 7 below

⦁ A closing date for applications will be set to allow for analysis of take‐up and spend

⦁ Following the closing date, a position statement will be produced detailing the number of eligible businesses in each category that have been paid the initial payment. Based on this information a decision will be made on how to disburse any remaining allocation. At this stage, the following options will be considered:

⦁ Further allocations to those businesses which have applied and been assessed as eligible

⦁ Extension of  the  scheme  to  further  types of businesses which meet the eligibility criteria set out in section 7

⦁ A combination of the above two

⦁ At the point that this decision  is made, this Policy will be updated to reflect that decision.

The grant does not need to be paid back and is designed to help business cope with the impact of COVID‐19.

7. Eligibility Criteria 

Only businesses which were trading on 11 March 2020 are eligible for this scheme.  Funding is to be provided to the person who is the business owner (eg. Sole trader, partnership, Limited Company) in respect of the hereditament on this date.  

The  eligibility  criteria  for  this  fund  has  been  set  by  Central  Government  and  is primarily  aimed  at  small  and  micro  businesses  (defined  in  the  guidance)  with relatively  high  fixed  building  costs  who  can  demonstrate  they  have  suffered  a significant  fall  in  income due  to  the Covid‐19 crisis.   The  fund  is prioritised  for  the following type of businesses: 

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⦁ Small  businesses  in  shared  offices  or  other  flexible workspaces.    Examples include units  in  industrial parks, science parks and  incubators, which do not have their own business rates assessment; 

⦁ Regular market  traders with  fixed building  costs,  such as  rent, who do not have their own business rates assessment; 

⦁ Bed & Breakfasts which pay Council Tax instead of business rates; and 

⦁ Charity properties  in  receipt of charitable business  rates  relief which would otherwise  have  been  eligible  for  Small  Business  Rates  Relief  or  Rural  Rate Relief with a rateable value below £15,000. 

Eligible  businesses  must  demonstrate  that  they  fall  into  all  of  the  following categories:

⦁ have relatively high ongoing fixed property related costs

⦁ have suffered a significant fall in income due to Covid‐19

⦁ meet the definition of a small or micro business as set out in the Companies Act  2006  and  reproduced  in  paragraphs  21  and  22  of  the  government guidance  available  at  this  link:  https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/887239/Local_Authority_Discretionary_Grants_Fund_-_guidance_for_local_authorities_-_version_2.pdf

⦁ are an eligible business which occupy property, or part of a property, with a rateable value, or annual rent, or annual mortgage payment below £51,000, and

⦁ they were trading as at 11 March 2020

The  guiding  principles  under  the  Small  Business  Grant  and  Retail  Hospitality  & Leisure Grant  Schemes  in  relation  to  “Effective Date” and Retrospective Changes” will equally apply to this grant, where appropriate and relevant.  

The  Council  is  responsible  for making  payments  to  businesses  and will  interpret legislation  and  guidance  in  exercising  its  judgement  to  determine whether or not eligibility is met as part of this decision making process.https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/887310/local‐authority‐discretionary‐fund‐la‐guidance‐v2.pdf

8.  Exclusions

This grant funding  is for businesses that are not eligible for other support schemes.  Businesses which have  received  cash  grants  from  any  central  government COVID‐related  scheme  are  ineligible  for  funding  from  the  Discretionary  Business  Grants Fund.  Such grant schemes include but are not limited to: 

⦁ Small Business Grant Fund 

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⦁ Retail, Hospitality and Leisure Grant 

⦁ The Fisheries Response Fund 

⦁ Domestic Seafood Supply Scheme (DSSS). 

⦁ The Zoos Support Fund 

⦁ The Dairy Hardship Fund 

However, businesses who have applied for the Coronavirus Job Retention Scheme are eligible to apply for this scheme. 

Companies that are in administration, are insolvent or where a striking‐off notice has been made are not eligible for funding under this scheme.

ADDITIONAL GRANT INFORMATION

9. Claiming a Grant 

All businesses must complete a grant form.  There are no exceptions. 

The Small Business Grant form is available at:  www.lancaster.gov.uk/small‐business‐grant

The  Retail,  Hospitality  &  Leisure  Grant  form  is  available  at:  www.lancaster.gov.uk/rhl‐grant

The Local Authority Discretionary Grant  forms, dependant on  the  type of business are available at:  www.lancaster.gov.uk/lad‐grant

Any  business  that  needs  assistance  in  relation  to  either  grant  should  contact  the Business Support Team by Email: econdev@lancaster.gov.uk

10. State Aid

Businesses  that  are  eligible  for  Small  Business  Grant  under  Scheme  1  or  Local Authority Discretionary Grant under  Scheme 3,  can only accept a grant under  the Small Business Grant Scheme  if  in receiving  it,  the  total State Aid  the business will have received in the past three financial years will not exceed €200,000.

Businesses that are eligible for the Retail, Hospitality & Leisure Grant under Scheme 2  can  only  accept  a  grant  under  the  Retail,  Hospitality  and  Leisure  Scheme  if  in receiving  it,  the  total  State  Aid  the  business will  have  received  in  the  past  three financial years will not exceed €800,000.

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These  grants  are  required  to  comply  with  the  EU  law  on  State  Aid.    Further information on State aid  law can be  found at https://www.gov.uk/state‐aid .   This will involve the ratepayer declaring to the council if they have received any other de‐minimus  State  aid or  aid provided under  the EU Commission Covid‐19 Temporary Framework.

11. Scheme of Delegation

This  policy  has  been  approved  by  the  Cabinet  Member  with  responsibility  for Finance.    However,  the  S151  Officer  is  authorised  to  make  technical  scheme amendments  to  ensure  it meets Council  criteria,  in  line with Central Government Guidance as it evolves.

12. Review of Decision

Government Guidance makes  clear  that  there  is no  statutory appeal procedure  in relation to the Council making discretionary decisions under these schemes. It is up to  the  local authority  to apply  the guidance as  they see  fit. However,  the Council will accept a ratepayers request for a review of the decision, in circumstances where either  the  grant  is  refused  or  there  is  dispute  in  relation  to  the  level  of  grant awarded.

Requests for review should be made in writing and submitted to:

Business Rate Grant ReviewLancaster City CouncilTown HallDalton SquareLancasterLA1 1PJ Email: Econdev@lancaster.gov.uk

Reviews may take up to 12 weeks to process and will be conducted independently by the  Councils  S151  Officer,  who  plays  a  key  role  in  ensuring  compliance  with  all financial,  statutory  and  constitutional  requirements.    In making  this  decision,  the S151 Officer may be assisted by business rates staff from Preston City Council who are separate  from  the original decision. The decision on review will be provided  in writing and is considered final.

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13. Other Grant Conditions

The Council has been  informed by Treasury that all grants are taxable.   Ratepayers should make their own enquiries to establish any tax position or liability.

A business is not obliged to accept the grant and can decline it if they do not require support.

14. Managing the risk of Fraud

All grant claims will be processed through a series of checks, including checks against our business  rates database and checks using  the Government Spotlight anti‐fraud software.     The Council reserves the right to verify/put on hold any claim to enable detailed checks to be carried out.  

Neither the Council, nor the Government will accept deliberate manipulation of the scheme and fraud.   Any ratepayer caught falsifying   their records to gain additional grant  money  will  face  prosecution  and  any  funding  issued  will  be  subject  to clawback, as may any grants paid in error.

Ratepayers  should note  that, where a grant  is paid by  the Council, details of each grant  will  be  passed  to  government  departments,  as  allowed  under  the  Data Protection Act 2018, to prevent fraud.

15. Effect on Council Finances 

The Council is required, on a weekly basis, to report to Central Gvernment a range of information  relating  to  how  many  eligible  businesses  received  grants  and  the amount  granted.    All monies  paid  through  the  grants  system  will  be  funded  by Central Government and paid to the Council under S31 of the Local Government Act 2003.

Appendix B

Equality Impact Assessment

Section 1: Details

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Service Corporate

Title and brief description (if required)

Covid-19 Business Grant Policy

New or existing New

Author/officer lead Adrian Robinson (Chief Officer – Revenues & Benefits)

Date 8th May 2020

Does this affect staff, customers or other members of the public?

Yes, the business community in the local authority area

Section 2: Summary

What is the purpose, aims and objectives? The purpose of the policy is to determine eligibility and the process for distributing the new Business Grants to ratepayers within the local authority area. The grants scheme is in response to the Covid-19 crisis and announcements made by the Chancellor on 11th March 2020 introducing Small Business Grants and Retail Hospitality and Leisure Grants, and by the Minister for Business, Energy and Industrial Strategy on 1st May 2020 introducing Discretionary Grants.

Who is intended to benefit and how?

The policy affects businesses as a whole across the local authority area, but more specifically small and rural businesses with a rateable value of less that £15,000 who qualify for Small Business Rate Relief or Rural Rate Relief; those in the retail, hospitality and leisure sector with a rateable value below £51,000; together with other small and micro businesses with high fixed property related costs, which have suffered significant losses, othat aren’t eligible for the other grant schemes.

The amount of grant available for each scheme is as follows:

Small Business Grant £10,000Retail, Hospitality and Leisure Grant £10,000 or

£25,000, subject to rateable valueLocal Authority Discretionary Grant up to a maximum

£10,000

The Council will target occupied businesses in the area that are considered eligible for grant, in recognition that many may be facing an uncertain future and difficulty as a result of the current pandemic.

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Section 3: Assessing impact

Is there any potential or evidence that this will or could:⦁ Affect people from any protected group differently to others? No

⦁ Discriminate unlawfully against any protected group? No

⦁ Affect the relations between protected groups and others? No

⦁ Encourage protected groups to participate in activities if participation is disproportionately low (won’t always be applicable)?

No

⦁ Prevent the Council from achieving the aims of its’ Equality and Diversity Policy?

No

If yes, please provide more detail of potential impact and evidence including:⦁ A brief description of what information you have and from where eg. getting to know

our communities data, service use monitoring, views of those affected ie discussions or consultation results?

⦁ What does this tell you ie negative or positive affect?

Age(including older and younger people and children)

No other evidence or expectation of any specific impact.

Disability No evidence or expectation of any specific impact.

Faith, religion or belief No evidence or expectation of any specific impact.

Gender (including marriage, pregnancy and maternity)

No evidence or expectation of any specific impact.

Gender reassignment No evidence or expectation of any specific impact.

Race No evidence or expectation of any specific impact.

Sexual orientation (Including Civic Partnership)

No evidence or expectation of any specific impact.

Rural communities Businesses in rural communities treated in the same way as all other businesses and will benefit in the same way. Therefore no evidence or expectation of any specific impact.

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People on low incomes The Business Grant Policy has been designed in line with Government Guidance, to provide support for small to medium sized businesses in the area. Some of the business occupiers may be linked to low income households.

Section 4: Next steps

Do you need any more information/evidence eg statistics, consultation? If so, how do you plan to address this?

No.

How have you taken/will you take the potential impact and evidence into account?

The proposed scheme uses Government guidance to target occupied properties in the small business, retail, hospitality and leisure sector, together with other businesses that do not qualify for grant in other schemes but are prioritised by the Government.

Eligible properties will be identified and asked to fill in an application form, including the supply of bank details, in order to speed up the payment process.

How do you plan to monitor the impact and effectiveness of this change or decision?

Through grant take-up statistics, feedback, Business support Unit, member comment etc.

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