New Government Business Grants Not Enough

The latest government business grants scheme will not provide anywhere near enough cash to support the vast majority of businesses in southern Oxfordshire affected by the COVID-19 pandemic, that’s the message from South Oxfordshire District Council.

South Oxfordshire District Council is currently assessing how many businesses may be eligible but have explained that they’d only be able to provide a tiny percentage of eligible businesses a grant to support them during this crisis. Nationally, the government is only providing an extra five per cent of funding on top of the money received in the first round of COVID-19 business grants in April.

The government has provided initial criteria within which the district councils can create a discretionary scheme.

Cllr Leigh Rawlins, Cabinet Member for Finance at South Oxfordshire District council, said: “We now have the challenge of trying to spread this money to as many businesses as possible while ensuring they also receive a meaningful amount to make any kind of a difference. The simple matter is there is not enough money to do that. We will see if we can try to identify the businesses most in need, but that won’t be easy.”

The councils are aiming to start paying funds by early June in line with the government’s guidance. They are now setting up the online application process using the detailed eligibility criteria the government has just announced, so it might take until near the end of May before businesses in South and Vale can start applying. However, taking a bit of time now to set it up now will ensure the process is quicker and easier to complete, meaning the councils can pay the funds to successful applicants without delay.

Only businesses that were trading on 11 March 2020 will be eligible for this scheme and funds received will be subject to tax, although only for businesses that make an overall profit once the grant income is included.

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

This grant funding will be for businesses that are not eligible for other support schemes. Businesses which have received cash grants from any central government COVID-19 related scheme are ineligible for funding from the Discretionary Grants Fund.

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