Local Restrictions Support Grant (businesses that are required to close)

For businesses forced to close by the Tier 3 or National Lockdown restrictions and which have a business rates rateable value.

This grant is for businesses that have been forced to close due to either local or national closure or lockdown restrictions, and which have a business rates rateable value. The application form is applicable to the three government schemes LRSG (Closed), LRSG (Sector) and LRSG (Closed) Addendum.

These businesses were either:

  • Required to close as a result of the Lancashire Local Restrictions LCAL (Very High) that came into force on 17 October 2020 for pubs, bars and licensed clubs not operating as restaurants and 19 October for other affected businesses
  • Have not been allowed to re-open since 23 March due to national restrictions e.g. nightclubs, hostess bars
  • Required to close on 5 November 2020 due to the national lockdown

Businesses closed by the Tier 3 restrictions are able to join the scheme on 17 October or 19 October.

Businesses that are ‘Sector’ businesses that have never been allowed to re-open (such as nightclubs) are able to join the scheme on 1 November.

Businesses that have been closed by the national lockdown are able to join the scheme on 5 November.

Eligibility

Your business may be eligible if it:

  • occupies property on which it pays business rates to Lancaster City Council (if you are in receipt of business rates relief you are also eligible)
  • was required to close on or after Saturday 17 October 2020 due to Lancashire-wide Tier 3 restrictions. Retrospective funding is not available before this date
  • has been subject to national restrictions since 23 March 2020 and as such has never been allowed to reopen e.g. nightclubs, sexual entertainment venues
  • has been required to close because of the national restrictions that resulted in a first full day of closure on Thursday 5 November 2020
  • has been unable to provide its usual in-person customer service from its premises e.g. a restaurant that has had to close its substantive business, but is providing a takeaway service, is deemed to be closed

The government has published guidance on the requirement to close premises and businesses (PDF).

Businesses that have substantially altered their business model in order to trade should enquire with Business Support at business.support@lancaster.gov.uk as to whether their original business model remains their substantive business.

Ineligible businesses

Your business will not be eligible if it:

  • has been able to continue to operate during the lockdown because it does not depend on providing direct in-person services from its premises
  • has chosen to close
  • has reached the state aid limit. The Local Restrictions Support Grant counts towards state aid. Payments count towards the total de minimis state aid allowed over a three-year period (€200,000). If you have reached that threshold, you may still be eligible for funding under the COVID-19 Temporary Framework where the limit is €800,000
  • was in administration, insolvent or where a striking-off notice was made on the date of the first full day of the local restrictions
  • is in areas outside the scope of the localised restrictions, as defined by the government

Eligible businesses will receive one grant for each property liable for business rates with Lancaster City Council.

Grants available (amounts subject to change)

  • If your business is eligible and has a property with a rateable value of £15,000 or under, you will receive grants of £667 per two weeks of enforced closure (£1,334 per month/4 weeks)
  • If your business is eligible and has a property with a rateable value of over £15,000 and less than £51,000, you will receive grants of £1,000 per two weeks of enforced closure (£2,000 per month/4 weeks)
  • If your business is eligible and has a property with a rateable value of £51,000 or over, you will receive grants of £1,500 per two weeks of enforced closure (£3,000 per month/4 weeks)

Grants will be based on the rateable value of the property on the first full day of either local or national restrictions.

Payment schedule

  • Businesses will receive 28 days (4 weeks) of grant funding upfront from 5 November to cover the national lockdown period
  • Businesses subject to closure due to local restrictions (LCAL Very High) will be paid retrospectively for the days that Lancaster was in Tier 3 local restrictions
  • Businesses that have not been allowed to re-open since 23 March, e.g. nightclubs, will be paid retrospectively for the 4 days that they were part of the Tier 3 scheme (which they came into on 1 November

Businesses subject to local restrictions must have been closed for the entirety of the two-week payment cycle from 17/19 October to be eligible for payment for those two weeks. Otherwise they will join the scheme from 31 October.

We aim to pay successful applications within five working days upon receipt of a valid application.

If restrictions continue beyond 2 December 2020 then any further payments due will be automatically generated for all businesses still forced to close.

How to apply

To request a paper application form please, email business.support@lancaster.gov.uk or telephone Customer Services on 01524 582000 with your details and request.

If you have any questions about the this scheme, please contact the Business Support Team by email to business.support@lancaster.gov.uk, or call Customer Services on 01524 582000 to arrange a call back.