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Luton Borough Council

Additional Restrictions Grant

 

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Further funding has been made available by the government to support businesses that have been severely impacted by restrictions, or by the Omicron variant but do not qualify for the Omicron Hospitality and Leisure Grant.

This scheme is aimed at supporting businesses with less than 250 employees, including those outside of the business rates system that fall within the following sectors:

  • hospitality
  • accommodation
  • leisure
  • personal care
  • travel and tourism sector (including group travel, travel agents and tour operators, coach operators)
  • wedding industries, nightclubs, theatres and events industries
  • wholesalers, English language schools, breweries
  • freelance and mobile businesses (including caterers, events, hair, beauty and wedding related businesses)
  • gyms and sports businesses (including dance and fitness studios, sports centres and clubs, sports courts, swimming pools and golf courses)

When can you apply?

The scheme is open until 13 March 2022, however these grants will be awarded on a first come first served approach, until the additional funding we have secured has been exhausted. Therefore it may be necessary to close the application window before this date is reached so we urge businesses to apply as soon as possible.

Due to the number of applications we are forecasting to receive and the short application period only complete applications, with all the evidence we request, will be accepted. We are unable to follow up your application by asking you to provide further evidence of information after you apply if you don’t provide sufficient evidence to process your application, so please provide us with this at the time of your application

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What grant is available?

The grants have been split into three levels:

  • Micro businesses - 0 to 10 employees will be awarded £2,667
  • Small businesses - 11 to 49 employees will be awarded £4,000
  • Medium businesses - 50 to 249 employees will be awarded £6,000

These are one off payments and are payable per business and not per property, therefore if you operate from more than one business premise you may only apply for one grant.

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Who is eligible?

Businesses below 250 employees in the following sectors that have been severely impacted by the restrictions or, by the Omicron Variant, operating from a premise within Luton on 30 December 2021. Businesses must have been trading on 30 December 2021 and be able to evidence a significant reduction in income in December 2021 compared with December 2019.

  • hospitality
  • accommodation
  • leisure
  • personal care
  • travel and tourism sector (including group travel, travel agents and tour operators, coach operators)
  • wedding industries, nightclubs, theatres and events industries
  • wholesalers, English language schools, breweries
  • freelance and mobile businesses (including caterers, events, hair, beauty and wedding related businesses)
  • gyms and sports businesses (including dance and fitness studios, sports centres and clubs, sports courts, swimming pools and golf courses)

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Exclusions from the scheme

  • Businesses with more than 250 employees
  • Businesses that have already received or are eligible to receive an Omicron Hospitality and Leisure Grant
  • Businesses that have already received grant payments that equal the maximum levels of state aid permitted under the De-minimis and the Covid-19 Temporary State Aid Framework
  • For the avoidance of doubt, businesses that are in administration, insolvent or where a striking-off notice has been made, are not eligible for funding under this scheme
  • Premises used for personal use, examples of where there may be personal use include private stables and loose boxes, beach huts and moorings
  • Financial services - banks, building societies, cash points, bureaux de change, short term loan providers
  • Medical services – vets, doctors, osteopaths, chiropractors, dentists
  • Professional services – solicitors, accountants, insurance agents, financial advisors, estate agents, letting agents
  • Petrol stations/service stations, Post Office sorting offices, car parks and parking spaces
  • Storage businesses
  • Retail businesses (unless in the personal care sector)
  • Takeaway businesses including mobile vans/kiosks
  • Dog groomers
  • National chains

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Will grants be subject to tax?

Grant income received by a business is taxable. The Additional Restrictions Grant will need to be included as income in the tax return of the business.

Only businesses which make an overall profit once grant income is included will be subject to tax.

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New rules on grant subsidy allowances

New national rules on grant subsidy allowances came into effect on 4 March 2021, which recipients of Covid-19 business grants schemes need to follow. These replace previous requirements to comply with EU State Aid rules.

Here is a broad summary of those requirements. Grant applicants will need to consult their own financial advisers if they have any questions about whether they comply with the government’s new rules on subsidy allowances.

  • Under the ‘Small Amounts of Financial Assistance Allowance’, a single economic actor must not receive more than £335,000 in grants over any three-year fiscal period.
  • In cases where this threshold is reached, there is a further ‘Covid-19 Business Grant Allowance’ of a further £1,600,000 per single economic actor.
  • Beyond this threshold, there is a ‘Covid-19 Business Grant Special Allowance’ where applicants may be able to access a further allowance of funding up to a further £9,000,000 per single economic actor, subject to conditions.

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© 2022 Luton Council, Town Hall, Luton LU1 2BQ