Confusion and worry over business support grant payments

The first lockdown in March saw small businesses forced to close but receiving cash after filling in a form stating that Covid-19 had affected them.

However, subsequent lockdowns have not been not so severe, allowing some businesses to remain open - and consequently payments have since been decided on business rates classifications.

Paul Martin runs the 'cafe' at Skegness Railway Station 12 months of the year - but says initially he was refused a grant because his business rates classify him as a kiosk, which is not included in this round.

He was eventually granted payment, but only after arguing his case with East Lindsey District Council.

"I open all year round but at the moment .no-one is travelling, holiday accommodation including Butlins is closed and so it is pointless opening," he said.

"I did open all through December but the best I did in a day was £20, which doesn't cover rent and costs.

"The cafe has seating inside so isn't a kiosk in the way you think of them.

"Waiting rooms and toilets at the station are closed which also impacts my business.

"I can't understand why I wasn't just paid out before."

£4.6 billion was announced by the government in new lockdown grants to support businesses and protect jobs

Businesses in the retail, hospitality and leisure sectors are to receive a one-off grant worth up to £9,000 to help them through to the Spring, the Chancellor has announced.

A £594 million discretionary fund has also been made available to support other impacted businesses. It comes in addition to £1.1 billion further discretionary grant funding for Local Authorities, Local Restriction Support Grants worth up to £3,000 a month and extension of furlough scheme

East Lindsey District Council emailed "successful beneficiaries of the original Local Restrictions Support Grant Closed Addendum (for the November Lockdown)", to clarify future arrangements for grant payments over the period of National Lockdown from January 5.

The authority stated: "All eligible hereditaments have already been automatically paid Local Restrictions Support Grant Closed Addendum, for November National Lockdown, and December(Local Restrictions Support Grant Closed, for Tier 3 restrictions.

"We are aware that some December payments may not have been automatically paid – this has happened because your Business Rates property description is incorrect e.g. if you are a café, but are listed as a Shop and Premises, you will not have been paid because shops are not required to close by law under Tier 3 restrictions.

"If you have not received a Tier 3 payment already and believe this applies to you, please e-mail with a description of what your business does, your Business Rates account number and property reference."

Barry Robinson, who runs Lite Bites cafe, on Roman Bank, is another cafe left waiting for payment and believes there may be many more.

He should have received £1,334 for December and also got in touch with East Lindsey District Council.

"I have been here as a cafe for 10 years and stated that at the first lockdown and received my grant and for November without issue," he said.

"However, I have received nothing for November and when I queried it it was because I am down as a Shop and Premises and not a cafe on the business rates.

"To change it could take months but I need the money now.

"I opened for a couple of days as a takeaway in December and only took £14 - it wouldn't even pay for the electricity let alone the rent.

"It makes you ask how many more cafes are like me."

Coun Danny Brookes owns Indulgence cafe in the High Street and says he called East Lindsey District Council after hearing of other cafe owners' concerns.

His business is classified as a cafe on the business rates but he said he appreciated the concern of other business owners who were struggling to get their money.

"I contacted ELDC on their behalf and explained they needed the grant to pay rent and bills now," he said.

"The first lockdown payment came without issue because everywhere was shut but this time payments have been made according to what the computer classifies the businesses as.

"People like Barry are clearly cafes and cannot afford to wait months for the business rates to be updated."

Lydia Rusling, Head of Economic Development, said ELDC was aware a 'small percentage' of businesses had not received their payments.

Ske said: “Businesses that were eligible to receive the Tier 3 Grant have received payments automatically. We are aware that a small percentage of businesses did not receive an automated payment as their business rates description did not qualify for the Grant, but all these have been contacted.

“For example, cafes listed as Shop and Premises will not have been paid because shops were not required to close by law under Tier 3 restrictions and therefore did not meet the Government criteria of the scheme.

"Kiosks would not be eligible to receive payment for the same reason, as they are classified as Shop and Premises and therefore able to stay open, which means they did not qualify for a Grant based on the criteria set by Government.

"In November 2020 we did run a campaign encouraging businesses to check their business rates information and to make any updates, if necessary, by contacting either our Business Rates Team or the Valuation Office, to ensure they would have the correct information on file for any future grants.

"We are encouraging all businesses to sign up to our newsletter to ensure they are kept up-to-date with available grants to support businesses during Covid restrictions.”

To sign-up for the Business Newsletter, visit www.e-lindsey.gov.uk/ebb .