LRSG (Open) Tier 2 - 2 December to 25 December 2020
In line with government guidance, the Tier 2 LRSG (Open) scheme is available to businesses within the hospitality, accommodation and leisure sectors that remained open but were severely impacted by the tier restrictions.
The building must be wholly or mainly used for the provision of sport, leisure and facilities to visiting members of the public (including for the viewing of such activities) and include the following:
- hotels, guest houses and boarding houses
- holiday lets
- caravan parks and sites
- sports grounds and clubs
- museums, theatres and art galleries
- sport and leisure facilities
- stately homes and historic houses
- tourist attractions
- gyms, wellness centres, spas, massage parlours
- casinos, gambling clubs and bingo halls
- public halls
- clubhouses, clubs and institutions.
Please note that businesses in the retail sector are not eligible for a grant for periods they have not been ordered to close, ie Tier 2 or 3 periods. This includes ‘personal care’ businesses such as hairdressers, barbers, tattooists and nail bars.
The amount of grant payable depends on the Rateable Value of the building and will be paid for the 24-day period that Huntingdonshire was in Tier 2:
| Rateable Value | £15,000 exactly or less | Over £15,000 but less than £51,000 | £51,000 exactly or over |
|---|---|---|---|
| Grant payment covering 24 days | £800.57 | £1,200 | £1,800 |
Q. What is the purpose of this funding?
In line with government guidance, this funding is being made available to support businesses within the hospitality, accommodation and leisure sectors that have not been required to close but have been severely restricted by local Tier 2 restrictions for the period between 2 and 25 December 2020.
The Tier 2 (Open) grant is available where the building was wholly or mainly used for the provision of sport, leisure and facilities to visiting members of the public (including for the viewing of such activities) and includes the following:
- hotels, guest houses and boarding houses
- holiday lets
- caravan parks and sites
- sports grounds and clubs
- museums, theatres and art galleries
- sport and leisure facilities
- stately homes and historic houses
- tourist attractions
- gyms, wellness centres, spas, massage parlours
- casinos, gambling clubs and bingo halls
- public halls
- clubhouses, clubs and institutions.
Q. How much funding will be provided?
The Tier 2 (Open) Scheme payment thresholds are:
| Rateable Value | £15,000 exactly or less | Over £15,000 but less than £51,000 | £51,000 exactly or over |
|---|---|---|---|
| Grant payment covering 24 days | £800.57 | £1,200 | £1,800 |
Payments will be made on a pro rata basis for qualifying days only.
Q. How can I apply?
If you were a previous recipient of LRSG (Open) then you will be contacted directly with a declaration form to confirm your business is still trading.
Q. Are these grants subject to tax?
Grant income received by a business is taxable, therefore the support grant will be subject to tax. Only businesses that make an overall profit once grant income is included will be subject to tax.
Q. Are there any conditions attached to this grant funding?
Recipients of grant funding must comply with all the scheme conditions, including eligibility, State aid/subsidy control requirements, and the provision of information to the local authority to support monitoring and assurance. By accepting the grant each recipient confirms that they are eligible for the scheme.
If a local authority subsequently finds that this self-declaration is incorrect it will be able to take action and the business would be liable for clawback.
Q. Why do I need to make a declaration before I receive the grant?
In line with government guidelines, the council needs to confirm that recipients of grant funding comply with all the scheme conditions, including eligibility, State aid/Subsidy control requirements, and the provision of information to the local authority to support monitoring and assurance. This will ensure financial support continues to reach the right businesses.
By accepting the grant each recipient confirms that they are eligible for the scheme.
If a local authority subsequently finds that this self-declaration is incorrect it will be able to take action and the business would be liable for clawback.
Q. How can I get an update on my application?
Log in to your MyHuntingdonshire account.
Once signed in, click on 'Track my requests'
Click on the 'Complete' tab and then click on the arrow for the declaration.
This will then open as below - click on the 'Notes' tab to view any updates.
We will notify you here that it has passed and moved on to payment.
If there are no Notes here your application may have been sent for review by the team, which we aim to complete within 3-5 working days of submission.
Q. Is there a date when businesses need to have started trading by to receive a grant?
The business must have been trading the day before restrictions came into force. For Tier 2 (Open) this date is 1 December 2020.
Q. Can businesses with multiple properties claim multiple grants?
Eligible businesses that are within the relevant local authority area required to close will receive a Tier 2 (Open) grant for each eligible hereditament. You will need to complete a declaration that the business is still trading for each hereditament you have previously received a Local Restrictions Support Grant for.
Businesses must remain within the financial thresholds set by State aid law, which may be reached if businesses have previously received State aid funding. Please see the ‘State aid/subsidy control’ section for more information.
Q. What happens where there is more than one liable party per property? Do they get a grant each, or are they expected to share?
Each hereditament will only have one registered ratepayer. They will take receipt of the grant.
Q. Is there any limit on the number of different hereditaments a business can claim a grant for?
Businesses will be able to claim for any eligible hereditaments within the area established by local restrictions that were on the rating list on the first full day of local restrictions.
However, businesses must remain within the financial thresholds set by State aid/subsidy control law, which may be reached if businesses have previously received State aid/subsidy control funding.
Q. What about retailers who have businesses that have mixed premises and only part of the business is subject to national closures (for example locksmith/shoe repairs, restaurant/takeaway)?
If the hereditament was previously eligible to receive a grant through the LRSG (Open) scheme it will be eligible for a Tier 2 (Open) grant.
Q. Are charities eligible?
Yes, they could fall under non-essential retail and can apply if they have a Business Rates number. Please note that when applying you will need to upload evidence of your Charity Commission number.
Q. Will parish councils be eligible for this fund?
Yes, any town and parish councils that qualified and received a Local Restrictions Support Grant will be eligible for this funding.
Q. Are hotels and other accommodation providers able to access the Tier 2 (Open) grant if they remained open to accommodate individuals travelling for work purposes or other exempt purposes (for example domestic violence victims)?
Yes, if a hotel or accommodation business was required to close their main business but remained open for exempt purposes and were eligible for a LRSG (Open) they will be eligible for a Tier 2 (Open) grant.
Q. Can businesses that are eligible but don’t want or need funding opt out?
A business may decline the grant.
Q. What discretion do local authorities have regarding rating list details?
Any changes to the rating list – both to the rateable value and the details – made after the first full day of localised restrictions, including changes that have been backdated to this date, should be ignored for the purposes of eligibility.
Only in cases where it was factually clear to the local authority on the first day of restrictions that the rating list was inaccurate on that date, local authorities may withhold the grant and/or award the grant based on their view of who would have been entitled to the grant had the list been accurate. This is entirely at the discretion of the local authority and only intended to prevent manifest errors.
Q. How should grants be administered where a business is in administration or liquidation?
These grants have been created to provide support to active businesses. Businesses will need to confirm they are not in liquidation in order to receive the grant.
Q. What is the appeals process for businesses under this scheme?
There is no appeals procedure. It is the role of local authorities to administer the scheme in line with government guidance.
Q. What should a local authority do if it detects or suspects fraud through this scheme?
The local authority will investigate any suspected fraudulent attempt from a business or individual to claim a grant to which they are not entitled and take appropriate action to recover any incorrectly paid grants.
Q. Do State aid rules apply to business grants provided under this scheme?
Yes. State aid applies to these schemes, and all recipients are required to comply with the maximum permitted funding under the relevant State aid rules – €200,000 over three years under the De Minimis Regulation, or €800,000 under the COVID-19 Temporary Framework for UK Authorities (lower thresholds apply to agriculture, fisheries and aquaculture business). The De Minimis aid and the Temporary Framework can be combined to bring the aid per company to up to €1 million. Any business that has reached the limits of payments permissible under the De Minimis and the UK Covid-19 Temporary State Aid Framework will not be able to receive further grant funding.
Excluding small and micro undertakings (fewer than 50 employees and less than €10 million of annual turnover and/or annual balance sheet), a business receiving grant paid under the Temporary Framework must also confirm that they were not an undertaking in difficulty on 31 December 2019. This exemption for small and micro undertakings does not apply if the undertaking is subject to collective insolvency proceedings under national law, has received rescue aid that has not been repaid, or is subject to a restructuring plan under State aid rules. Grants provided under the Local Restrictions Support Grant scheme can be made under either the De Minimis Regulation (where the relevant conditions are met), or under the COVID-19 Temporary Framework for UK Authorities where for example, the De Minimis threshold has been reached. Local Authorities must ensure all relevant State aid law requirements are complied with including any relevant reporting requirements to the EU Commission under State aid rules.
Q. What checks are councils expected to make regarding State aid?
Businesses will be required to confirm that they comply with the scheme conditions, for example that they did not fall within the definition of an undertaking in difficulty on 31 December 2019 (excluding small and micro businesses) and have not received more than the maximum permitted funding for State aid. Local authorities will write to businesses to ask for confirmation of this.