The Restart Grant guidance defining who falls into each relevant sector for the one off grants that replace the Local Restrictions Grants on April 1 is now available. The grant is only available to businesses on the business rates list, and the grant amount depends on the sector your business operates in and the rateable value of your premises.
Non-essential retail businesses will receive either £2667, £4,000 or £6,000, whilst Hospitality, Personal Care, Accommodation or Leisure businesses will receive £8,000 £12,000 or £18,000. As part of their application process for the scheme, all businesses will be required to self-certify that they meet all eligibility criteria below.
RATES VALUATION UNDER £15k £15-£51k ABOVE £51k
NON- ESSENTIAL RETAIL £2,667 £ 4,000 £ 6,000
PERSONAL CARE £8,000 £12,000 £18,000
HOSPITALITY £8,000 £ 12,000 £18,000
ACCCOMODATION £8,000 £ 12,000 £18,000
LEISURE £8,000 £ 12,000 £18,000
GYMS £8,000 £ 12,000 £18,000
It was also confirmed that non-rateable businesses will need to apply instead for the Additional Restrictions Grant, for which Local Authorities must disburse all existing funds at the latest by June 30, before they can then access any of the additional £425m funds announced in the budget.
Rishi Sunak announced last week that he believed 70% of the existing funding remained unspent, whilst the guidance on the level of Additional Restrictions Fund now states
Local Authorities may want to take into account:-
businesses outside of the business rates system
businesses that have not received any other grant support
the level of fixed costs of the business
the number of employees the business has
whether it is unable to trade online
the consequent scale of coronavirus losses.
ELIGIBILITY
Local Authorities will be responsible for determining whether businesses are entitled to a grant under the non-essential retail thresholds, or under the hospitality, accommodation, leisure, personal care and gym business thresholds.
The primary principle of the Restart Grant scheme is to support businesses that offer in-person services, where the main service and activity takes place in a fixed rate-paying premises, in the relevant sectors.
Annex C gives a list of businesses that fall into scope for each sector. This list is indicative of the types of businesses, but is not exhaustive. Local Authorities will have to use their local knowledge and the definitions and criteria set out below to assist in making a decision on eligibility of a business for this scheme.
If a business operates services that could be considered non-essential and also fall into another category, such as hospitality in the higher funding threshold, the main service can be determined by assessing which category constitutes 50% or more of their overall business.
The main service principle will determine which threshold of funding a business receives. Businesses will need to declare which is their main service. Local Authorities will need to exercise their reasonable judgement to determine whether or not a business is eligible for grants under which funding threshold and be satisfied that they have taken reasonable and practicable steps to pay eligible businesses and to pay them the correct amount.
It is understood that in some cases it may not be materially clear whether a business falls into one of the categories, so decisions on the eligibility of these businesses will be at the Local Authorities discretion.
Businesses must have been trading on 1 April 2021 to be eligible to receive funding under this scheme.
Local Authorities will need to run an application process for all first-time applicants for a COVID-19 business grant and must be satisfied that businesses that have previously received related grants under this scheme meet the eligibility criteria for the Restart Grant.
Strand One: up to £6,000 per hereditament
Non-essential retail
For the purposes of this scheme, a non-essential retail business can be defined as a business that is used mainly or wholly for the purposes of retail sale or hire of goods or services by the public, where the primary purpose of products or services provided are not necessary to the health and well-being of the public.
Local Authorities may use the following criteria to assess whether a business is eligible for a grant under this threshold:
Businesses offering in-person non-essential retail to the general public.
Businesses that were likely to have been required to cease their retail operation in the January 2021 lockdown.
Businesses that had retail services restricted during January lockdown.
Businesses that sell directly to consumers.
For these purposes, the definition of a non-essential retail business should exclude: food retailers, including food markets, supermarkets, convenience stores, corners shops, off licences, breweries, pharmacies, chemists, newsagents, animal rescue centres and boarding facilities, building merchants, petrol stations, vehicle repair and MOT services, bicycle shops, taxi and vehicle hire businesses, education providers including tutoring services, banks, building societies and other financial providers, post offices, funeral directors, laundrettes and dry cleaners, medical practices, veterinary surgeries and pet shops, agricultural supply shops, garden centres, storage and distribution facilities, wholesalers, employment agencies and businesses, office buildings, automatic car washes and mobility support shops.
Strand Two: up to £18,000 per hereditament
Hospitality
For the purposes of this scheme, a hospitality business can be defined as a business whose main function is to provide a venue for the consumption and sale of food and drink. Local Authorities may use the following criteria to assess whether a business is eligible for a grant under this threshold:
Businesses offering in-person food and drink services to the general public.
Businesses that provide food and/or drink to be consumed on the premises, including outdoors.
For these purposes, the definition of a hospitality retail business should exclude: food kiosks and businesses whose main service is a takeaway (not applicable to those that have adapted to offer takeaways during periods of restrictions, in alignment with previous COVID-19 business grant schemes).
Leisure
For the purposes of this scheme, a leisure business can be defined as a business that provides opportunities, experiences and facilities, in particular for culture, recreation, entertainment, celebratory events and days and nights out.
Local Authorities may use the following criteria to assess whether a business is eligible for a grant under this threshold:
Businesses that may provide in-person intangible experiences in addition to goods.
Businesses that may rely on seasonal labour.
Businesses that may assume particular public safety responsibilities.
Businesses that may operate with irregular hours through day, night and weekends.
For these purposes, the definition of a leisure business should exclude: all retail businesses, coach tour operators, tour operators and telescopes.
Accommodation
For the purposes of this scheme, an accommodation business can be defined as a business whose main lodging provision is used for holiday, travel and other purposes.
Local Authorities may use the following criteria to assess whether a business is eligible for a grant under this threshold:
Businesses that provide accommodation for ‘away from home’ stays for work or leisure purposes.
Businesses that provide accommodation for short-term leisure and holiday purposes.
For these purposes, the definition of an accommodation business should exclude: private dwellings, education accommodation, residential homes, care homes, residential family centres, beach huts.
Gym & sports
For the purposes of this scheme, a gym & sport business can be defined as a commercial or non-profit establishment where physical exercise or training is conducted on an individual basis or group basis, using exercise equipment or open floor space with or without instruction, or where individual and group sporting, athletic and physical activities are participated in competitively or recreationally.
Local Authorities may use the following criteria to assess whether a business is eligible for a grant under this threshold:
Businesses that offer in-person exercise and sport activities to the general public.
Businesses that open to members of the public paying an entry or membership fee.
Businesses that require extensive cleaning protocols, which significantly slow down trade.
Businesses that offer exercise classes or activities, which may mandate space and no masks etc.
For these purposes, the definition of a gym & sport business should exclude: home gyms, home exercise studios, home sports courts and home sports grounds.
Personal care
For the purposes of this scheme, a personal care business can be defined as a business which provides a service, treatment or activity for the purposes of personal beauty, hair, grooming, body care and aesthetics, and wellbeing.
.Local Authorities may use the following criteria to assess whether a business is eligible for a grant under this threshold:
Businesses that deliver in-person holistic, beauty and hair treatments.
Businesses that provide services such as tattoos and piercings.
Businesses that offer close-contact services, which are required to deliver the treatment.
Businesses that offer services, treatments or activities that require social distancing and cleaning protocols, which have led to a reduction in their capacity to deliver personal care services.
For these purposes, the definition of a personal care business should exclude:
Businesses that only provide personal care goods, rather than services;
Businesses used solely as training centres for staff, apprentices and others;
Businesses providing dental services, opticians, audiology services, chiropody, chiropractors, osteopaths and other medical or health services, including services which incorporate personal care services, treatments required by those with disabilities and services relating to mental health.
ANNEX C
Business categorisation for the purposes of grant funding thresholds
Threshold definitions for the purposes of this scheme are restated below:
• Non-essential retail definition: a business that is open to the public and is used mainly or wholly for the purposes of retail sale or hire of goods or services, where the primary purpose of products or services provided are not necessary to the health and well-being of the public.
• Hospitality definition: a business whose main function is to provide a venue for the consumption and sale of food and drink
• Leisure definition: a business that provides opportunities, experiences and facilities, in particular for culture, recreation, entertainment, celebratory events, days and nights out, betting and gaming
• Accommodation definition: a business whose main lodging provision is used for holiday, travel and other purposes.
• Gym & Sport definition: a commercial establishment where physical exercise or training is conducted on an individual basis or group basis, using exercise equipment or open floor space with or without instruction, or where individual and group sporting, athletic and physical activities are participated in competitively or recreationally.
• Personal care definition: a business which provides a service, treatment or activity for the purposes of personal beauty, hair, grooming, body care and aesthetics, and wellbeing. This table sets out types of businesses that are eligible under the sector thresholds for this scheme.
This list is not exhaustive, but indicative of the types of businesses that can be supported under this scheme.
Support type Types of businesses
Non-essential retail (up to £6k)
Betting offices
Departmental stores
Markets (other than livestock)
Sales kiosks
Showrooms, e.g. kitchen, bathroom, tile, glazing
Tobacco and vape stores
Antiques stores
Sales offices
Travel agents
Electronic goods and mobile phone shops
Clothes shops
Book shops
Auction rooms
Car auction
Car showrooms
Car supermarkets
Car washes (standalone)
Car/caravan
Sales/display/hiring Sites
Charity shops
Carpet stores
Furniture shops
Sofa shops
Homeware shops
Florists
Plant nurseries
Jewellers
Stationery shops
Gift shops
Make-up shops
Animal groomers
Sweet shops
Photography studios
Hospitality (up to £18k)
Food courts
Public houses/pub restaurants
Restaurants
Roadside restaurants
Wine bars
Cafes
Leisure (up to £18k)
Bingo halls
Bowling alleys
Casinos and gambling clubs
Cinemas
Ice rinks
Museums and art galleries
Roller skating rings
Stately homes & historic houses
Theatres
Zoos & safari parks
Amusement parks
Pleasure piers
Pavilions
Conference centres
Exhibition centres including for use as banquet halls and other events
Wedding venues
Events venues
Heritage railways
Public halls
Night clubs & discotheques
Hostess bars
Sexual entertainment venues
Shisha bars, waterpipe consumption venues
Arenas
Concert halls
Go kart rinks
Model villages
Tourist attractions
Aquaria Miniature railways
Theme parks
Amusement arcades including adult gaming centres
Animal attractions at farms
Wildlife centres
Botanical gardens
Circus Visitor attractions at film studios
Soft play centres or areas
Indoor riding centres
Clubs & institutions
Village halls & scout huts, cadet huts etc.
Accommodation (up to £18k)
Caravan parks
Caravan sites and pitches
Chalet parks
Coaching inns
Country house hotels
Guest & boarding houses
Hostels
Hotels
Lodges
Holiday apartments, cottages or bungalows
Campsites
Boarding houses
Canal boats or other vessels
B&Bs
Catered holiday homes
Holiday homes
Personal care (up to £18k)
Spas, sauna and steam rooms
Hairdressing salons
Tanning salons
Nail salons
Massage centres, massage treatments Tattoo and piercing studios Holistic therapy (reflexology, massage, acupuncture)
Barbers,
Groomers
Beauty salons
Beauticians, aesthetics
Other non-surgical treatments
Gyms & sport (up to £18k)
Dance schools and centres
Dance studios
Gymnasia/fitness suites
Cricket centres
Ski centres Sports and leisure centres
Outdoor sports centres
Outdoor adventure centres
Squash courts
Tennis centres
Sports courts
Swimming pools
Shooting and archery venues
Driving ranges
Water sport centres
Golf courses
It is expected that Local Authorities will provide local businesses with grant funding as soon as possible from 1 April 2021. The application closure date for this scheme is 30 June 2021 and final payments must be made by 31 July 2021.