Local restrictions support grant (Closed) (Addendum) Tier 4, National Lockdown and New One-Off Lockdown Payment

Update to cover 16 February to 31 March 2021

The national lockdown remains in place and businesses mandated to close in retail, hospitality and leisure industries will receive a Local Restrictions Support Grant (LRSG Closed / Addendum) for the period 16 February to 31 March 2021 (44 days) in line with the guidance.

If your business has been mandated to close and you have already received a Local Restrictions Grant payment, you do not need to reapply.

The Council has started to make payments on 23 February and expects to have made all payments by no later than 26 February in accordance with the table below. This will again be paid via the BACS system (3 working days). Businesses who have been awarded this payment will receive an email with the amount and period it covers by no later than 26 February:

Grant schemes from 16 February to 31 March 2021
DescriptionLocal Restrictions Support Grant (Closed) Addendum aka National Lockdown
Business rate payer Yes
Grant per business 1 per hereditament
Period in Payment Cycle 16 February to 29 March (6 weeks) 30 March to 31 March (2 days) Total (6 weeks, 2 days)
Expected payment date No later than 26 February No later than 26 February No later than 26 February
Grant threshold - rateable value £15k and under £2,001 (6 weeks) £95.28 (2 days) £2,096.28 (6 weeks, 2 days)
Grant threshold - rateable value more than £15k and less than £51k £3,000 (6 weeks) £142.86 (2 days) £3,142.86 (6 weeks, 2 days)
Grant threshold - rateable value £51k and above £4,500 (6 weeks) £214.28 (2 days) £4,714.28 (6 weeks, 2 days)
Scheme closure date 31 March 21 (for payments from 5 January) and 31 May 21 for payments from 16 February 21
Eligibility Criteria Mandated to close by Government under national restrictions, Rate-paying business, Solvent, Under state aid limits
Will businesses who have already been paid a LRSG need to reapply? No

What will happen on 31 March when the current payment cycle ends?

The Council will need to wait for further guidance/tier announcement and then will make the relevant automatic payment subject to no change to the tiers already paid - the website will be updated as soon as we know more.

Will business who stayed open be entitled to any of the new grants or continue to receive the Local Restrictions Support Grant (Open) Payment?

No. All the grant schemes stop when in National Lockdown.

Businesses who were receiving a LRSG (Open) payment will not receive any further grant payments unless mandated to close on 31 December and/or 5 January then the above grant schemes will apply.

If you have not yet applied and are a Trafford based business registered for Business Rates, that has been required to close due to temporary COVID-19 local and national lockdown restrictions, you can still apply. We aim to process all new applications within 14 days of receipt.

Who is eligible

The grants are available for those businesses that were open and providing in-person services to customers from their business premises and were then legally required to close. Eligible businesses are those:

  • Required to close during localised restrictions when Trafford was placed in Tier 3/Very High restrictions. This affects:
    • Pubs and bars who had to close from this date.
    • Casinos
    • Bingo halls
    • Betting shops
    • Adult gaming centres
    • Soft play centres
  • Required to close from 31 December 2020 when Trafford was placed in Tier 4/Stay at Home restrictions. This affects:
    • Clothing and fashion stores
    • Homeware stores
    • Carpet stores
    • Kitchen, bathroom, tile, and glazing showrooms
    • Tobacco and vape shops
    • Electronic goods and mobile phone shops
    • Charity shops
    • Photography studios and antique stores
    • Markets (except livestock markets or stalls which fall under the list of essential businesses above, for example those selling food.
    • Car and other vehicle showrooms and other premises, including outdoor areas, used for the sale or hire of caravans, boats or any vehicle which can be propelled by mechanical means. However taxi or vehicle hire businesses can continue. For example a customer could order a rental vehicle online and collect it in person.
    • Car washes (except for automatic car washes)
    • Auction houses (except for auctions of livestock or agricultural equipment)
    • Betting shops
  • Required to close from 5 November 2020 until 2 December 2020 and/or 5 January 2021 under the national lockdown restrictions. This affects businesses as determined by law.

Who is not eligible?

  • Businesses that have chosen to close but not been legally required to close.
  • Businesses that were already closed before being legally required to close.
  • Businesses that can continue to trade because they do not depend on providing direct in-person services from premises.
  • 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 were in administration, are insolvent or where a striking-off notice has been made.

Funding

Eligible businesses will be able to access up to £3,000 per four weeks of closure (payable by BACS), pro-rata for periods of less than four weeks, payable 2 weeks in advance and 2 weeks in arrears at the following rates:

Funding grants available
Rateable valueGrant paid per four-week period

£15,000 or less

£1,334

£15,001 and less than £51,000

£2,000

£51,000 or greater

£3,000

Before you start

You will need the following information to complete the application form:

  • Your Business Rates Account Reference Number (this will be on your most recent bill).
  • A copy of your latest bank statement (one issued within the last three months which clearly shows the name of the business or ratepayer; address; sort code and account number).

Fraud

You may face prosecution if you have manipulated or falsified your position in order to obtain these payments, including failure to close your business which puts others at risk.

Any payment made as a result of fraud may be subject to claw back, as may any grants paid in error.

The Government is supporting local councils to make the necessary checks to ensure payments can be verified and have been made correctly.

The Council will be able to withhold payments and/or recall payments from businesses who are not adhering to the local and/or national restrictions that are in place, as this is part of the eligibility requirements.

State aid

Businesses who receive awards of Government grant funding such as the Local Restrictions Support Grant are required to comply with the EU law on state aid.

EU state aid rules apply to all payments made before 1 January 2021.

LRSG awards count towards the total de minimis state aid you're allowed to get over a 3 year period - €200,000.

If you have reached the de minimis threshold, you may still be eligible for funding under the COVID-19 Temporary Framework. The limit for this framework is €800,000 under section 3.1 of the framework.

If you have already reached the de minimis threshold and the €800,000 limit under the COVID-19 Temporary Framework, you may be able to receive further grant funding. This subject to a number of conditions under Section 3.12 of the Temporary Framework.

The LRSG application form will ask you to complete a declaration confirming that you will not exceed the relevant state aid threshold by receiving a LRSG grant.

Data sharing

Trafford Council will use your data for the processing of your Local Restriction Support Grant application.

We may check the information you provide or the information about you which somebody else provides, with other details we hold. If the law allows us, we may also receive information from other people or organisations or give information to them to check the accuracy of records, to prevent or detect crime, or to protect public funds in other ways.

All information is processed in accordance with the Council’s data protection policy .

Application process

You can apply for the Local Restrictions Support Grant if you are registered for Business Rates and have been legally required to close your business.

If your business is closed for more than one period of four weeks under national lockdown arrangements, we will determine your eligibility for future payments based on your initial application, it is therefore important that you notify us immediately of any changes.

More details about all the Local Restrictions Support Grant schemes are available here:

We do not accept applications from third parties for the Local Restrictions Support Grant.

Local Restrictions Support Grants are subject to tax and will need to be declared by businesses in their tax returns.