Fylde Additional Restrictions Grant Allocation Scheme
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Fylde Additional Restrictions Grant Allocation Scheme The government has initiated local restrictions in response to increased Coronavirus rates within communities. Localised restrictions are legally binding restrictions imposed on Local Authority areas where the Secretary of State for Health and Social Care uses powers of Part2A of the Public Health (Control of Disease) Act 1984 in response to the threat posed by coronavirus and commonly as part of a wider set of measures. The Additional Restrictions Grant (ARG) is one of the financial support packages established by central government to provide support to businesses that have been adversely affected as a result of the national lockdown restrictions. The fund is limited and therefore will be used to support as many local businesses as possible and that make a major contribution to the Fylde economy. The fund is a single allocation, targeted at businesses that are not eligible for the Local Restrictions Support Grant (Closed), are priority businesses in the local economy, and that are severely impacted by the COVID 19 measures. The fund was initially a single allocation based on £20 per head of population (ONS 2019 Mid- Year Population Estimates) for each local authority to operate a discretionary grant scheme. Since the initial investment from central government, additional top-up funding has been provided on the same population-proportionate basis. Local Authorities have the freedom to determine precise eligibility criteria for the ARG grant scheme, subject to cross cutting conditions that apply to all grant schemes. Local Authorities are responsible for administering grants in response to local restrictions. Given the limited budget available (which is significantly less than the previous lockdown allocation) the Council is required to prioritise which businesses to support and the level of grant to be provided. It is recognised that not all businesses will benefit and even those that do may be disappointed with the level of support the council is able to offer. Grant support will be targeted at businesses that are a priority to the Fylde economy, which includes; hospitality, leisure and accommodation sectors. Small and medium sized businesses, often independently owned, in these sectors have been severely impacted by the nature of the restrictions on travel, social mixing, in-person services, and premise controls for businesses that cannot be delivered online.
The objective of the allocation scheme is: • To offer financial assistance to a priority range of businesses operating in and supplying the hospitality, leisure and accommodation sectors that have been severely impacted by COVID related local or national restrictions; • To provide strategic financial assistance to larger businesses critical to the economic recovery of the Fylde economy in 2021; and • To communicate advice and support (financial and non-financial) to all businesses affected by COVID-related trading restrictions. The ARG awards will be administered through several schemes in order to support as many local businesses as possible including: 1. ARG Discretionary Grant - a local discretionary grants scheme like the discretionary scheme administered on behalf of the government as part of the business support measures during the initial lockdown from March to June 2020 (Details of this scheme are included in Appendix 1); 2. ARG Licenced Drivers Scheme – a grants scheme aimed at drivers who are licenced with the council - the impact from reduced tourism footfall across the Fylde coast has adversely affected licenced drivers that have had limited or no other means of support (Details of this scheme are included in Appendix 2); 3. ARG Closed Premises Supplementary Scheme - a Local Restrictions Support Grant (Closed) supplementary award targeted at those businesses that are required to remain closed from 2nd – 30th December, 2020, the timing of which is the busiest trading period of the year and where the business cannot trade online (Details of this scheme are included in Appendix 3); 4. ARG Exceptions Scheme – a grant scheme to address exceptional local circumstances from businesses that have been unable to secure any, or enough, support from other grant schemes (including other elements of the ARG). Evidence of significant and exceptional or unique circumstances that place the business at risk as a result of local or national restrictions will be required (Details of this scheme are included in Appendix 4). 2
5. ARG Vacant Premises Grant – a grant scheme established to provide support to start- up costs for small local businesses who take on vacant premises between 1 March 2021 and 31 March 2022 (subject to availability of grant funding). This grant scheme is intended to stimulate new business in the town centres of St Annes, Lytham and Kirkham that will encourage footfall to the area. The scheme will support new businesses with a contribution towards the initial investment for shop fitting and set- ups costs. (Details of this scheme are included in Appendix 5). The following terms apply in respect of all the ARG schemes: TAX IMPLICATIONS • Grant income received by a business is taxable. Therefore, the Additional Restrictions Grant will need to be included as income in the tax return of any business in receipt of this funding. • Only businesses which make a net profit once grant income is included within their income will be subject to tax. STATE AID RULES Although the United Kingdom left the EU on 31 January 2020, under the Withdrawal Agreement, State aid rules continue to apply during a transition period, subject to regulation by the EU Commission. The Additional Restrictions Grant counts towards state aid. The rules are fully explained in the government state aid guidance. By accepting this grant, a business must confirm that they are not in breach of these rules. Fylde Council is required to check that State aid requirements have been complied with when making grant payments, including, where required, compliance with all relevant conditions of the EU State Aid De-Minimis Regulation; the EU Commission Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak, and the approved COVID-19 Temporary Framework for UK Authorities, and any relevant reporting requirements to the EU Commission. DECISIONS AND APPEALS 3
Applications will be approved or rejected based on this guidance. The Chief Executive has the discretion to approve, reject or defer any or all applications. If approved, the grant amount will be paid direct into the nominated bank account by BACS payment. There is no right of appeal over the amount of grant awarded. If an application is rejected a brief explanation of the decision will be provided. There is no right of appeal against the decision to refuse an application, but where additional new evidence becomes available an application can be reconsidered where such a reconsideration is deemed appropriate at the Council’s discretion. DECLARATIONS & GDPR All applicants will be requested to declare the accuracy of the information they provide. Applicants are required to provide business bank account details to speed the process of BACS payments upon approval. The retention period for all applicant data will be subject to further confirmation from government in terms of post payment assurance. The Council will confirm the retention period on the Council’s website once known. The Council will only share data with other areas of the Council as required to administer the ARG, or to meet government post event assurance requirements. Data will not be shared with any other external agencies. FRAUD Where an applicant falsely applies for a grant payment or where they provide false information, makes false representation, or deliberately withhold information in order to gain a grant, prosecutions will be considered under the Fraud Act 2006. APPENDIX 1: THE ARG LOCAL DISCRETIONARY SCHEME Awarding process: Webpage and public online application form Deadline for applications for National Lockdown (5 Nov 2020) : 18 December 2020 Deadline for applications for National Lockdown (5 Jan 2021) : 4pm 12 February 2021 4
The Additional Restrictions Grant (ARG) has been established by central government to provide support to small local businesses that have been most adversely affected as a result of the national lockdown restrictions, and are not eligible for the LRSG (Closed) grant. Full details of the national guidance for this grant can be found at this link. The fund is limited and therefore will be used to support as many local businesses as possible that are a priority for the Fylde economy. The fund is a single allocation based on £20 per head of population (ONS 2019 Mid-Year Population Estimates) for each local authority to operate a discretionary grant scheme, targeted at businesses that are not eligible for the Local Restrictions Support Group (Closed), are priority businesses in the local economy, and that are severely impacted by the COVID 19 measures. Who should apply for the ARG? The ARG is aimed at a range of priority businesses in the Fylde economy including the following: • Leisure, hospitality and tourism businesses that are not separately registered for business rates and that have not been eligible for any other covid grants scheme; • Small businesses in shared rented space e.g. market traders not eligible for any other covid grants scheme; • Small businesses that have remained open during the national lockdown period but that have experienced a significant loss of income due to the national restrictions; • Amateur sports clubs, charities and community recreational associations not eligible for any other covid grants scheme; • Home based workers experiencing significant loss of income due to national restrictions; and • Mobile workers who have been forced to cease trading under National Lockdown restrictions. Eligibility In order to be eligible to apply for the ARG the business must: • Be located and trading primarily in the Fylde borough area; 5
• Have been trading on, and before 16th October 2020; • Be adversely affected by the restrictions introduced under the national lockdown; • Have less than 40 employees; and • Have ongoing fixed costs. Exclusions The following exclusions will apply: • Businesses that are part of a large regional or national chain / franchise; • Businesses that are eligible for a Local Restrictions Support Grant (Closed); • Businesses that are in administration, insolvent or where a striking-off notice has been made; and • Mobile workers who were not required to cease trading during National Lockdown restrictions. Assessment & Award Three levels of grant will be available through the ARG scheme: £1,000, £2,000 or £3,000. The amount awarded to eligible applicants will be based on an assessment of the evidence provided against the following criteria: • The impact of lockdown measures on income to the business, considering whether the business has been able to continue any trading (including online); • Any impact on the ability to trade as a result of social distancing and lockdown measures e.g. additional cost to address COVID measures; • Eligibility for other business grant support and any previous grant awards; and • The financial viability of the business in terms of cash flow and reserves available to the business. Only a single one-off award will be made per business so please do not submit multiple applications for multiple premises of the same business entity. Grant Conditions • Only one grant per eligible business (not one per business premise) will be paid. 6
• Businesses must have been trading as normal on the 16th October 2020. • The business must be located and primarily trading in the Fylde borough. • Grants will only be paid to the nominated business bank account. • Awards made from the ARG discretionary fund are made based on the circumstances and evidence provided by the applicant and taking into consideration the limit of the fund to achieve the objective of supporting as many businesses as possible’ • This funding is only available for eligible local businesses adversely affected by the national lockdown measures. APPENDIX 2 – ARG LICENSED DRIVERS SCHEME Awarding process: Licensed drivers contacted and directed to online application form Deadline for applications: 4pm Friday 22 January. Licensed drivers are an important element of the Fylde coast tourist / visitor economy and is a sector that has had limited, if any, local and national grant support apart from the Self Employment Income Support Scheme. Lockdown and tier restrictions have resulted in a long-term impact on licensed drivers where reduced footfall has adversely affected income, particularly for those that have limited or no other means of support but who also retain the responsibility for the insurance, licensing, repairs and maintenance of their vehicles or are required to continue to pay the rental for a vehicle. The ARG award will be allocated on the following basis: • Licensed drivers registered with Fylde Council on October 16 th, 2020 will be awarded a single fixed payment of £350. The award is based on the current cost of licences, rentals, vehicle inspections and a contribution towards loss of earnings. Eligible licence holders will be required to complete a verification form to check eligibility and process any payment. 7
APPENDIX 3 – ARG CLOSED PREMISES SUPPLEMENTARY SCHEME Awarding process: Eligible businesses from LRSG/ARG successful applications will be automatically awarded and notified Premises that are required to remain closed from Wednesday December 2 nd for the period that Fylde remains under Tier 3 restrictions represent an important sector of the local economy for visitors and residents. The businesses include; restaurants, bars, public houses, cafes, entertainment venues and accommodation outlets (hotels and B&B’s) with the restrictions requiring closure during what would be the busiest period of the year. To compensate for this additional period of closure at a crucial time for the hospitality and leisure sector a single supplementary award will be made on the following basis for eligible businesses: • Premises with a business rate valuation of £15,000 or less - an award of £1,500; • Premises with a business rate valuation of £15,001 to £51,000 - an award of £2,000; • Premises with a business rate valuation of £51,001 and above - an award of £3,000; and • Premises without a business rate valuation - an award of £500. Eligible businesses will be contacted direct and notified of the supplementary award that will be paid. In order to be eligible a business must meet all the following criteria: • Have been required to close by law from December 2nd, 2020 under the Tier 3 regulations; • Have submitted by 23rd December 2020 a prior application to the Local Restrictions Support Grant (Closed), or former Tier 3 LRSG (Closed) scheme, or the Additional Restrictions Grant; and • Be a customer-facing business in the hospitality, accommodation and leisure sector of the economy that cannot deliver the normal level of service by online means. 8
APPENDIX 4 - ARG EXCEPTIONS SCHEME Awarding process: Webpage and enquiries directed to online contact form Some businesses have been severely impacted over a long period of time as a result of regulations, guidance, restrictions and changes in behaviour directly attributable to the COVID 19 pandemic measures and restrictions. For example, a venue that is exclusively dedicated to large gathering celebrations such as weddings, birthdays and christenings and which has no other source of income i.e. it does not operate as a hotel, public bar, restaurant etc. that would mitigate the impact. Businesses that have been adversely impacted for the whole period of the COVID pandemic, and that can evidence that their circumstances are exceptional, will be considered on a case by case basis for additional support. To be eligible for consideration the business must be able to demonstrate all the following: • The long term (minimum 6 month) impact of the COVID restrictions on the income of the business without any significant recovery between the lockdown periods; • The business has premises or operational costs that cannot be reduced or mitigated as a result of closure or reduced trade i.e. a zoo required to feed and care for the animals; or significant rent / rates payments with no relief applied; • The business is not a sole trader and employs at least five people (paid or volunteers); • The service or product is delivered or produced in the borough of Fylde; and that • The business is in the leisure, tourism, entertainment or hospitality sectors. APPENDIX 5 - ARG VACANT PREMISES GRANT Awarding process: Webpage, online application form, and assessment by a case officer A grant opportunity has been created by the council as part of our on-going commitment to work with local people to tackle the challenges facing the three primary town centres in Fylde. The Additional Restrictions Grant (ARG) Vacant Premises Grant has been established to provide support to start-up costs for small local businesses who take on 9
vacant premises between 1 March 2021 and 31 March 2022 (subject to availability of grant funding). The council has made a commitment to support the recovery of the local economy after the challenges faced from the COVID pandemic, an important element of the local economy is small independent businesses in the town centre. Even before the pandemic the town centre was facing severe challenges with the increase of online shopping creating the need for places to reinvent themselves. As part of this commitment the council is offering new start-up businesses locating in vacant premises in the town centres, that offer in person service, the opportunity to receive a grant towards the cost of fitting out the premises. This grant scheme is intended to stimulate new business in the town centres of St Annes, Lytham and Kirkham that will encourage footfall to the area. The economic climate has been challenging for all business during the COVID pandemic with in-person businesses having had additional costs to keep customers safe, while trading has been restricted due to COVID measures. The ARG Vacant Premises grant will support new businesses with a contribution towards the initial investment for shop fitting and set-ups costs. Who should apply for the ARG Vacant Premises Grant? Businesses which meet all the following criteria can apply for a grant: • Moving or expanding into a vacant premises in the town centre • Offering an in–person service that would generate footfall to the town centre • Small independent sole trader / operator or locally based chain • Premises must be within the town centre locations as per the maps at the bottom of this webpage • Premises must include ground floor shop frontage Exclusions • Businesses that are part of a large regional or national chain / franchise in the food and drink, hospitality, or beauty / hair sectors • Existing businesses relocating from one town centre location in Fylde to a different town centre (unless expanding) 10
• Businesses that are in administration, insolvent or where a striking-off notice has been made • Business that might duplicate or displace already established businesses • Businesses that do not have fixed premises in the town centre Assessment & Award Applicants can claim for up to 50% of the setup, shop fitting, refit, or branding cost of the business to a maximum of £10,000. The amount awarded to eligible applicants will be based on an assessment of the project proposal on a case by case basis considering the following criteria: • The refit cost of moving into the premises • Initial set-up costs prior to the opening of the business • Whether the business operates in a priority sector for the local economy which includes retail, hospitality, leisure, and tourism • Whether the business would fill a gap that exists in the town centre offer to generate footfall throughout the day – not just retail • The impact on the ability to trade because of social distancing and lockdown measures, e.g. reduced opening hours, mandated closures, reduction of customers able to access the premises, or travel guidance • Additional costs because of operating in a COVID-secure manner, e.g. adaptions to premises such as one-way systems or plastic screens, procurement of PPE and hygiene provisions, or employment of additional staff to manage COVID-secure measures • The financial viability of the business in terms of cash flow and reserves Grant Conditions • Only one grant per eligible business premises will be paid • Grants will only be paid to the business owner and to the business bank account • Businesses will receive a single grant payment on production of certified receipts 11
• Applicants must demonstrate a clear viability gap through their application form, business plan and cash flow forecast • The application will need to outline the need and demand for the business and how it will increase footfall to the town centre • The business must offer / provide a high street frontage • Businesses already well represented in the town centre will need to demonstrate added value or difference to the existing town centre offer • The grant cannot be used to pay for rent, business rates or staff costs • The grant can be spent on set up costs including building refurbishment, fixtures and fittings, utility connection costs and business marketing/branding • The application must be submitted by December 31st, 2021 to allow time to process the scheme by March 31st, 2022 • Any award will be made on approval of the application with payment on invoice of works / services completed Potential applicants will be required to submit an expression of interest via the application link that will be allocated to a case officer who will act as the lead liaison for the grant application making all necessary checks with licensing, planning and other regulatory functions to assess the viability of the proposal and work closely with the applicant to make an award wherever possible. An application should only be made if a business meets the eligibility criteria and is not exempt having read the information above. Please DO NOT apply if the business does not meet the required criteria – an award cannot be made. 12
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