{"id":164259,"date":"2021-03-01T08:51:56","date_gmt":"2021-03-01T08:51:56","guid":{"rendered":"https:\/\/www.theindustry.fashion\/rishi-sunak-to-offer-5bn-business-grants-to-help-re-start-the-high-street\/"},"modified":"2021-08-06T12:10:26","modified_gmt":"2021-08-06T12:10:26","slug":"rishi-sunak-to-offer-5bn-business-grants-to-help-re-start-the-high-street","status":"publish","type":"post","link":"https:\/\/www.theindustry.fashion\/rishi-sunak-to-offer-5bn-business-grants-to-help-re-start-the-high-street\/","title":{"rendered":"Rishi Sunak to offer \u00a35bn business grants to help re-start the high street"},"content":{"rendered":"<p>Non-essential retailers, pubs, restaurants and other businesses hit hardest by the coronavirus pandemic will be boosted by a \u00a35bn grant scheme to help them reopen as the lockdown is eased.<\/p>\n<p><!--more--><\/p>\n<p>Chancellor Rishi Sunak will detail the <strong>\u201cre-start grants\u201d worth up to \u00a36,000 per premises to help non-essential retailers re-open<\/strong> and trade safely at his Budget on Wednesday.<\/p>\n<p><strong>Hospitality, hotels, gyms, as well as personal care and leisure firms,<\/strong> will be eligible for up to \u00a318,000 per premises as they are due to open later under the plans for easing lockdown.<\/p>\n<p>The Treasury <strong>estimates 230,000 firms will be eligible for the higher band,<\/strong> which will be awarded based on their rateable value, and 450,000 shops will also be able to apply.<\/p>\n<p>Sunak told the <em>Mail on Sunday<\/em> the scheme would <strong>provide at-risk businesses with \u201cthe support they need to get them through,<\/strong> get them back on their feet and get the tills ringing once again\u201d.<\/p>\n<p>But Sunak issued a warning about the scale of the damage caused by the pandemic, <strong>suggesting he could use the Budget this week to begin making less palatable decisions<\/strong> to tackle the deficit.<\/p>\n<p>He told the <em>Financial Times<\/em> he plans to <strong>\u201clevel with people\u201d during his Commons speech<\/strong>, as he spoke of the \u201cenormous strains\u201d on the UK\u2019s public finances are facing.<\/p>\n<p>Treasury sources did not deny a report suggesting the Chancellor plans to<strong> raise \u00a36bn by<\/strong> <strong>freezing income tax thresholds for at least three years.<\/strong><\/p>\n<p><em>The Sunday Times<\/em> said he would <strong>freeze the \u00a312,500 point at which people start paying the basic rate<\/strong> of income tax and the \u00a350,000 threshold where they begin paying the higher 40p rate, as he aims to raise \u00a343bn a year.<\/p>\n<p>The move would allow Sunak to raise extra funds <strong>without breaking the manifesto pledge<\/strong> that guaranteed the Conservatives would not raise the \u201crate\u201d of income tax.<\/p>\n<p>But the newspaper estimated the move would<strong> push an extra 1.6 million people into a higher tax bracket<\/strong> before the next general election is due in 2024.<\/p>\n<p>The Government is braced for the possibility of a rebellion from Tory MPs over any tax rises, with backbenchers being warned they could be kicked out of the parliamentary party if they vote against the Budget.<\/p>\n<p>Labour leader<strong> Sir Keir Starmer has said that \u201cnow is not the time\u201d for tax increases,<\/strong> as have some Tory MPs who want the Chancellor to focus in growing the economy as it reopens from lockdown.<\/p>\n<p>In a series of announcements ahead of his set-piece speech, <strong>Sunak said the UK will launch a sovereign green savings bond for retail investors<\/strong> to help cut greenhouse emissions to net zero by 2050.<\/p>\n<p>The \u00a35bn for re-start grants is <strong>targeted at England, but the devolved nations in Scotland, Wales and Northern Ireland will receive an extra \u00a3794m<\/strong>\u00a0in funding through the Barnett formula.<\/p>\n<p><strong>Local authorities will be tasked with distributing the grants <\/strong>and will receive the funding in April.<\/p>\n<p>The British Retail Consortium (BRC) called for clarity on whether the grants will be subject to state aid caps mirroring the EU\u2019s, but <strong>welcomed the funding as \u201ca vital injection of funding during this extremely challenging period\u201d<\/strong>.<\/p>\n<p>BRC CEO Helen Dickinson did, however, warn that the grants \u201cwill only provide temporary relief\u201d and called for <strong>an extension to the moratorium on aggressive rent enforcement and to the business rates relief<\/strong> in the Budget.<\/p>\n<p>Federation of Small Businesses national chair Mike Cherry said the grants will \u201cprovide a much-needed lifeline\u201d, but called for the Chancellor to <strong>set out more funding \u201cfor those that have been excluded from income support<\/strong> throughout this crisis\u201d.<\/p>\n<p><a href=\"\u201cCash reserves have been severely depleted after a year of closure and restrictions and these grants are a very welcome boost, putting the sector in a better place to restart. \u201cBusinesses are crying out for the cash now so there can be no further delays which might make it too late for some.\u201d But she said the grants must form part of a wider package that includes an extension to the reduced VAT rate and a business rates holiday. \u201cWithout these measures, and full furlough while we reopen, the hospitality sector\u2019s recovery will be stunted along with our ability to start tackling unemployment by creating jobs,\u201d she added. The British Retail Consortium (BRC) joined UKHospitality in calling for clarity on whether the grants will be subject to state aid caps mirroring the EU\u2019s, but welcomed the funding as \u201ca vital injection of funding during this extremely challenging period\u201d. BRC chief executive Helen Dickinson did, however, warn that the grants \u201cwill only provide temporary relief\u201d and called for an extension to the moratorium on aggressive rent enforcement and to the business rates relief in the Budget. Federation of Small Businesses national chair Mike Cherry said the grants will \u201cprovide a much-needed lifeline\u201d, but called for the Chancellor to set out more funding \u201cfor those that have been excluded from income support throughout this crisis\u201d.\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-144088 size-full\" src=\"https:\/\/www.theindustry.fashion\/wp-content\/uploads\/Daily-Newsletter-Banner.png\" alt=\"Newsletter banner\" width=\"1680\" height=\"268\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Non-essential retailers, pubs, restaurants and other businesses hit hardest by the coronavirus pandemic will be boosted by a \u00a35bn grant scheme to help them reopen as the lockdown is eased.<\/p>\n","protected":false},"author":68,"featured_media":142557,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[16042,10585,6,10494],"tags":[10520,10519,5707,14038,11408,14041,16011],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.7 - 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