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Luton Borough Council

Additional Restrictions Grant

 

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Luton has developed this discretionary grant scheme to help those businesses who:

  • ​are unable to access funding through the Local Restrictions Support Grants or Business Restart Grant
  • have been severely impacted by the restrictions put in place to control the spread of Covid-19

The first two tranches were focussed on businesses:

  • ​which supply the retail, hospitality, travel and leisure sectors
  • in the events and aviation sector

But the scheme has now been broadened to support all businesses below 250 employees, in any setting.

The scheme will also help businesses outside the business rates system, such as taxi/private hire drivers which have been severely impacted by the restrictions put in place

When can you apply?

These grants will be awarded on a first come first served approach and will be open until 31 May 2021, or until funding has been exhausted, whichever is sooner.

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What grant is available?

To simplify administration, the grants have been split into three levels. For those businesses most impacted a £9,000 award will be given, with those businesses lesser impacted being given £6,000 and finally those with a minor impact £4,000. These are one off payments.

Licensed taxi and private hire drivers will be able to apply for a one off grant payment of £1,500.

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Who is eligible?

Businesses must have been trading on 1 April 2021.

These grants are primarily and predominantly but not exclusively aimed at: 

  • all businesses below 250 employees in any setting
  • businesses that are severely impacted by the restrictions put in place or businesses which are legally forced to close
  • operating from a premise within Luton on 1 April 2021 or
  • licensed taxi and private hire drivers who on the 1 April 2021 held a valid taxi or private hire driv​ers licence issued by Luton Council
  • approved driving instruictors
  • other businesses such as nurseries and seasonal business impacted by the restrictions

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Exclusions from the scheme

  • Businesses with more than 250 employees
  • Businesses that have already received or in the process of applying for a Local Restrictions Support Grant or Business Restart Grant
  • Businesses that are able to continue to trade and can operate their services effectively remotely
  • 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
  • Car parks and parking spaces
  • Financial services - banks, building societies, cash points, bureaux de change, short term loan providers
  • Medical Services – vets, doctors, osteopaths, chiropractors, physio therapists
  • Professional services – solicitors, accountants, insurance agents, financial advisors
  • Post Office sorting offices

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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.

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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Apply

Click on the suitable button below to apply for the ARG.

Apply for Additional Restrictions Grant

Apply for Additional Restrictions Grant Taxi and private hire​​​​​​​​​​​​​​​​​​​​​​​​​​​

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© 2021 Luton Council, Town Hall, Luton LU1 2BQ