Telford MP welcomes extra support for small businesses amid Covid-19 crisis
A £617 million package to help small businesses which missed out on previous Government support has been welcomed by a Shropshire MP.
Lucy Allan, MP for Telford, said she had been lobbying the Chancellor to support businesses which had not qualified for previous assistance.
The money will be given to local authorities, which will have the discretion to decide which firms should receive it, and individual councils are expected to learn how much they will receive later this week.
The Government has asked local authorities to prioritise businesses in shared spaces, market traders, small charity properties, and bed and breakfasts that pay council tax rather than business rates.
This scheme is on top of the £12.3 billion allocated for the Small Business Grants Fundand the Retail, Hospitality and Leisure Grants Fund.
So far, Telford & Wrekin Council has processed more than 2,179 grants totalling £25.9 million and allocated a further £30 million in business rates relief to 900 local businesses.
Ms Allan said the new discretionary fund was aimed at small businesses with ongoing fixed property-related costs.
To qualify, businesses must have fewer than 50 employees and to demonstrate a significant loss of income due to coronavirus.
Struggling
There will be three levels of grant payments – £25,000, £10,000 or under £10,000.
Ms Allan said she was pleased the Government had listened to MPs who lobbied for further support.
"I am aware of a number of businesses in Telford that were ineligible for government grant funding but were struggling financially and facing closure," she said.
"This new discretionary fund will allow local authorities to be flexible when issuing grant funding and ensure that companies can receive grants as soon as possible."
She added that it was important the council did all it could to ensure the grants reached businesses as soon as possible, and said she would be closely monitoring the administration of the grants to ensure businesses were not unreasonably refused funding.
Ms Allan added that there would be more government funding in the pipeline for Telford to rebuild its economy as lockdown restrictions are eased.
