Local councils yet to pay Restart Grants totalling £800 million

Local authorities are still sitting on £800 million worth of Restart Grants, new government data has revealed.

Out of the £3.4 billion handed out to local councils to pass to hard-hit businesses in retail, hospitality and leisure sector, only £2.6 billion has been allocated as of 23 June, according to the data from the Department for Business, Energy and Industrial Strategy.

British Independent Retailers Associations (Bira) said some of its members are still waiting for the grants two months after the launch of the scheme.

“Bira is continuing to campaign for the prompt payment of these grants for the government to instruct local authorities to distribute funds that have not been used up,” Andrew Goodare, Bira chief executive told Asian Trader.

“This could be done by the application, asking those business owners still impacted by Covid to apply. Local authorities should return all this money because they can use it to help so many businesses in so many ways.”

In East Riding, Yorkshire Council had issued £23.7 million in grants to 3,141 businesses under the scheme up to the end of May. It came from a £25.1 million pot given to the council, which leaves £1.4 million to still give away by the end of July.

Meanwhile, Bassetlaw District Council had issued £5.8 million in grants to 817 businesses in the same period. It came from a £6.9 million pot, which leaves £1.1 million to still give away.

Goodare said: “This data clearly shows that some local authorities still have money to hand out to hard-hit businesses to help with their recovery.

“We have already voiced its disappointment in the speed in which some local authorities issued grants. They were meant to be Restart grants, in line with the reopening of so-called non-essential retail on April 12.

“However, we know from our members that some councils still haven’t paid the grants – or did so many months too late – despite having business details to hand from the last time lockdown grants were issued.”

Goodare has advised its members to make sure the local authority have your business registered on their system and to check the local authority websites for the grants that are available to support businesses impacted by Covid. He urged businesses to speak, write or email the local authority if the grant is not received, and look out for special grants that are available to business owners who have been more severely impacted by Covid.