Originally written by Timothy Adler on Small Business
Although government says it has paid out the £4.6bn worth of Covid-19 grants to be distributed by all 314 local authorities over the current national lockdown, it still has to release of the £12bn worth of support first offered last year.
The Local Government Association says that councils have also been struggling to distribute the money, due to increased state-aid compliance issues and vetting applicants for fraud. They have focused on getting larger amounts for January’s closures out the door, as opposed to last year’s smaller grants.
But businesses still awaiting grants say they may not still be in business by the time money is finally released.
>See also: Where to find your £1,000 small business lockdown grant
The British Beer and Pub Association estimates that around three quarters of so-called “wet pubs”, which focus on selling drinks, had not received the £1,000 grant promised by the government in December.
Craig Beaumont, external affairs chief at the Federation of Small Businesses, criticised the “postcode lottery” for grants.
“Some councils have done well, but others are taking weeks or months,” he told the Financial Times. “Councils are afraid of making mistakes and want government clarity, while the government insists they should get the money out.”
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