Additional restrictions grant

This additional fund is aimed at businesses with ongoing fixed property-related costs.

Havant Borough Council has ringfenced £500,000 of funding to support businesses from central government.

Deadline

Grants will be initially administered for businesses affected by the move to Tier Four on Sunday 20 December 2020. 

Applications will be considered, and applicants notified of the outcome as soon as possible, with payments being made within a week of the decision notification.

The scheme will end 14 days after the council moves out of Tier Four restrictions.

If further local or national restrictions are put in place which force businesses to close, applications to the additional restrictions grant fund may reopen.

Eligibility criteria

This funding is available for business that have been forced to close and are not covered under the local restrictions support grant scheme but have significant fixed costs which are not related to employment.

  • fixed costs – any costs relating to the operation of the business that cannot be cancelled during this period. These could include property costs such as rent for non-rateable commercial premises and utilities. Fixed costs do not include employee costs.

Businesses significantly affected by business closures caused by local Tier Four restrictions that came into force on Sunday 20 December 2020. This grant will not be administered for periods of impact before this date. These businesses will include those that provide products and services to the retail, hospitality, and leisure sectors, or businesses in the events sector, that have been forced to close during the second national lockdown. In addition, Micro and Small businesses that are experiencing significant financial hardship due the Tier Four restrictions, will also be considered in this period.

Only businesses located within the Havant Borough Council area will be eligible for this scheme.

The business must have been actively trading on and before 4 November 2020.

Discretionary grants will be paid subject to State Aid regulations, meaning the business needs to check that they comply with State Aid rules and inform the council accordingly prior to payment being made. If State Aid rules are breached the responsibility lies with the applicant and, in line with the legislations, the council can take action to recover the funding.

Exclusions to the additional restrictions grant

  • Businesses that can continue to trade and can operate their services effectively remotely.
  • Businesses that have chosen to close but not been required to will not be eligible for this grant.
  • 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 in administration, insolvent or where a striking-off notice has been made, are not eligible for funding under this scheme.
  • Precepting authorities

Grant levels

Business can receive up to a maximum of £3,000 for a 28-day period for any given property.

  • property – a business that has more than one property will be eligible to apply for each actively trading property.

Grants will be awarded on a first come first served basis within the funding allocation limits of the scheme agreed by the council.

Indicative amounts for priority groups – The additional restrictions grant scheme will follow the Local restrictions support grant scheme for the amounts paid.

  • For properties with a rateable value of £15k or under, grants to be £1,334 per 28-day qualifying restriction period or prorated 14-day period
  • For properties with a rateable value of over £15k and below £51k, grants to be £2,000 per 28-day qualifying restriction period or prorated 14-day period
  • For properties with a rateable value of £51k or over grants to be £3,000 per 28-day qualifying restriction period or prorated 14-day period

Where a property is part of a larger rateable value, these will be set up to a maximum of the lower level of £1,334 per 28-day qualifying restriction or prorated 14-day period.

For businesses that work from a residential property and B&B accommodation, these will be set up to a maximum of £500 per 28-day qualifying restriction period or prorated 14-day period.

  • for businesses that work from a residential property, fixed monthly overheads for the purpose of this grant only includes business expenses and not any residential costs. A maximum of one grant per residential property.

Evidence

Closed businesses

Closed businesses applying for additional restrictions grant funding will be required to give details of income received in November, December and January (estimated). The council places responsibility on the applicant to provide information that is correct to the best of their knowledge.

We also require a copy of a bank statement (showing the business name or applicant’s name, registered address with income within the last three months).

For businesses that work from home (residential property), you will also need to provide:

  • a copy of the council tax bill showing that they are registered for council tax in the district
  • evidence of registration with HMRC for tax purposes will also be required

Open businesess

Open businesses that are applying for additional restrictions grant funding will be required to give details of income received in November, December and January (estimated). The council places responsibility on the applicant to provide information that is correct to the best of their knowledge.

In addition, businesses that are not required to close will need to provide evidence to demonstrate they supply businesses that are required to close.

We also require a copy of a bank statement (showing the business name or applicant’s name, registered address with income within the last three months).

For businesses that work from home (residential property), you will also need to provide:

  • a copy of the council tax bill showing that they are registered for council tax in the district
  • evidence of registration with HMRC for tax purposes will also be required

Additional information

Tax

Grant income received by a business is taxable therefore funding paid under the Additional Restrictions Grants Fund will be subject to tax. Only businesses which make an overall profit once grant income is included will be subject to tax.

State Aid

The United Kingdom left the EU on 31 January 2020, nonetheless under the Withdrawal Agreement the State aid rules continue to apply during a transition period, subject to regulation by the EU Commission.

Havant Borough Council 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.

Havant Borough Council have a discretion to make payments to eligible recipients under either the De Minimis rules or the COVID-19 Temporary Framework for UK Authorities (provided all the relevant conditions are met).

Payments of up to and including £10,000 can be provided under the De Minimis rules, meaning applicants can receive up to €200,000 of aid within a three-year period. 

Fraud

The council will not accept deliberate manipulation and fraud - and any business caught falsifying their records to gain additional grant money will face prosecution and any funding issued will be subject to claw back, as may any grants paid in error

All applicants’ information will be shared with the Government Grants Management team to enable any fraud to be identified. 

All businesses will confirm this by ticking the box on the application.

Appeals

There are no further appeals rights for the grant, the council’s decision is final. 

Queries

If you require support or advice about the additional restrictions grant, please email economic_development@havant.gov.uk.