Around half of Somerset smaller business have missed out on coronavirus financial support : but there is still time
By Susie Watkins
4th May 2020 | Local News
Around half of all small businesses in Somerset are missing out on coronavirus grants from the government – because they don't meet the criteria.
Figures provided by the Office of National Statistics (ONS) indicate there are nearly 25,000 small and medium enterprises (SMEs) operating across the county.
But only around half of these have received support from either of the big grants the government has put in place to keep small firms afloat during the lockdown.
Somerset's district councils have urged businesses who have not yet applied to come forward.
What support is available?
There are two kinds of grants available to SMEs, which were announced by chancellor of the exchequer Rishi Sunak MP on March 17.
The small business grant fund provides a £10,000 lump sum to all businesses in receipt of small business rates relief and rural rates relief.
The retail, hospitality and leisure grant fund offers £25,000 for businesses in the sector with property with a rateable value between £15,000 and £51,000.
In each case, the grants are only available to those who pay business rates on their premises – meaning those who operate their business from a residential property are excluded, as are those who share premises (such as markets).
How many businesses are eligible?
The ONS lists Somerset as having 24,450 SMEs, according to its most recent figures.
But separate statistics, analysed by the Reach shared data unit, has determined only 12,141 are eligible for either grant – just under 50 per cent.
While some businesses will be receiving other support – such as the job retention scheme (where employees are furloughed) or the self-employment income support scheme – these grants are generally less substantial.
Furthermore, those who are eligible for either grant are still awaiting payment.
As of April 26, nearly 4,600 Somerset businesses were still waiting for their grants to be paid – the equivalent of £60.7M in funding.
Mike Cherry, national chair of the Federation of Small Businesses, said: "Every day that goes by for a small business without those cash grants is another day worrying about the future of their livelihoods.
"That is why it is essential that councils get these funds issued as soon as possible and into the hands of small firms before it's too late.
"Now more than ever, it is vital that we get the money out there and back our small businesses."
How many businesses in my area are benefiting?
The grants are administered by Somerset's four district councils.
They have been allocated £151.5M for these grants by central government, and have paid out £90.8M so far to 7,557 businesses.
Somerset West and Taunton Council has paid out the largest amount so far at £28,275,000, split between 3,943 businesses (out of a total of 6,625 SMEs).
South Somerset District Council has paid out £26,650,000 to 2,784 firms, followed by Sedgemoor District Council (£19,350,000 to 2,650 companies) and Mendip (£18,505,000 to 2,764 businesses).
One of the businesses that has benefited from the grants is Scoffage Takeaway based on Bridgwater's High Street.
Kate Gardiner, who runs the business, said: "It's such a shame to shut the doors on a business still very much in its infancy in any circumstance, but when a global pandemic hits everything just seems so unclear and scary.
"The business support grant has ensured we don't have to close and we can continue to employ, continue to grow and continue to supply Bridgwater with vegan takeaway food.
"It really has got us through this horrendous crisis when we initially thought permanent closure would be the only way out."
Another successful applicant has been Sue Milverton, who runs a bed-and-breakfast and events business from Clavelshay Barn near the Quantock Hills.
She said: "The grant has enabled us to pay all suppliers and run a home delivery service, producing top quality meals, boxed and delivered to homes in the Taunton and Bridgwater areas, so it has been a huge help."
What has the government said?
A spokesman for the Department of Business, Energy and Industrial Strategy said: "We have announced a substantial package to support businesses of all sizes, including grants through local authorities, where so far over £7.5bn has already been paid out to more than 614,000 business properties.
"This grant funding is being provided to businesses who are ratepayers. However, we continually review our support for the economy and to businesses through the covid-19 response.
"Businesses that are not eligible for local authority grant payments are able to benefit from the wide-ranging multi-billion pound package of support that the Government has made available."
What do I do if I've not yet applied?
Apply as soon as you can via your council's website:
Mendip: www.mendip.gov.uk/businessrates
Mendip leader Ros Wyke, said: "It's grants that are on offer here. They are not loans. No business will ever be required to pay back this funding.
"We know these are challenging times for local businesses but the finances are there, and we are here to support you. Please contact us and get the help you are entitled to."
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