rating button
Restart grant scheme | Local Restrictions Support Grant (LRSG) 16 February to 31 March 2021 and Restart Grant (1 April 2021) | Birmingham City Council

Restart grant scheme

On 3 March 2021, Government announced the introduction of grant support for non-essential retail, hospitality, accommodation, leisure, personal care and gym businesses in England.

See the restart grant announcement on the GOV.UK website

Under the Restart Grant scheme, Local Authorities will receive funding to be allocated in one-off grants to businesses.

There are 2 strands to the scheme, Non Essential Retail, and Hospitality, accommodation, leisure, personal care and gym business.

  • Grants of up to £6,000 will be paid to non-essential retail business premises, to help them reopen safely.
  • Grants of up to £18,000 will be allocated to hospitality, accommodation, leisure, personal care and gym business premises, which may open later under plans set out in the roadmap and will be more impacted by restrictions when they do reopen.

The Restart Grant scheme supports businesses that are predominantly reliant on delivering in-person services for the general public in the above sectors

How much funding will be provided to businesses?

The Restart Grant scheme is for business with premises in the Ratings list only and they are the named Rate Payer on the Business Rates records.

If you are not the named Rate Payer, you are not eligible for this scheme.

The Restart Grant is a one-off grant.

The Restart Grant will support non-essential retail premises with one-off grants of up to £6,000 in Strand 1 of the Restart Grant.

The following thresholds apply for these businesses:

  • Businesses occupying premises appearing on the local rating list with a rateable value of exactly £15,000 or under on 1 April 2021 will receive a payment of £2,667
  • Businesses occupying premises appearing on the local rating list with a rateable value over £15,000 and less than £51,000 on 1 April 2021 will receive a payment of £4,000
  • Businesses occupying premises appearing on the local rating list with a rateable value of exactly £51,000 or over on 1 April 2021 will receive a payment of £6,000

The Restart Grant will also support hospitality, accommodation, leisure, personal care and gym business premises with one-off grants of up to £18,000 in Strand 2 of the Restart Grant.

The following thresholds apply for these businesses:

  • Businesses occupying premises appearing on the local rating list with a rateable value of exactly £15,000 or under on 1 April 2021 will receive a payment of £8,000
  • Businesses occupying premises appearing on the local rating list with a rateable value over £15,000 and less than £51,000 on 1 April 2021 will receive a payment of £12,000
  • Businesses occupying premises appearing on the local rating list with a rateable value of exactly £51,000 or over on 1 April 2021 will receive a payment of £18,000

Any changes to the rating list (rateable value or to the hereditament) after 1 April 2021 will be ignored for the purposes of eligibility.

Local Authorities are not required to adjust, pay or recover grants where the rating list is subsequently amended retrospectively to 1 April 2021.

Strand 1 Non-Essential Retail Government Definition:

For the purposes of this scheme, a non-essential retail business can be defined as a business that is used mainly or wholly for the purposes of retail sale or hire of goods or services by the public, where the primary purpose of products or services provided are not necessary to the health and well-being of the public.

Local Authorities may use the following criteria to assess whether a business is eligible for a grant under this threshold:

  • Businesses offering in-person non-essential retail to the general public
  • Businesses that were likely to have been required to cease their retail operation in the January 2021 lockdown
  • Businesses that had retail services restricted during January lockdown
  • Businesses that sell directly to consumers

Strand 1 Non-Essential Retail Business Excluded

The following business are not eligible for this scheme:

Food retailers, including food markets, supermarkets, convenience stores, corners shops,

  • off licences, breweries
  • pharmacies, chemists
  • newsagents
  • animal rescue centres and boarding facilities
  • building merchants
  • petrol stations, vehicle repair and MOT services, bicycle shops, taxi and vehicle hire businesses
  • education providers including tutoring services
  • banks, building societies and other financial providers
  • post offices
  • funeral directors
  • laundrettes and dry cleaners
  • medical practices, veterinary surgeries and pet shops
  • agricultural supply shops, garden centres
  • storage and distribution facilities
  • wholesalers
  • employment agencies and businesses
  • office buildings
  • automatic car washes
  • mobility support shops

Strand 2 Hospitality Government Definition:

For the purposes of this scheme, a hospitality business can be defined as a business whose main function is to provide a venue for the consumption and sale of food and drink.

Local Authorities may use the following criteria to assess whether a business is eligible for a grant under this threshold:

  • Businesses offering in-person food and drink services to the general public
  • Businesses that provide food and or drink to be consumed on the premises, including outdoors. For these purposes, the definition of a hospitality retail business should exclude: food kiosks and businesses whose main service is a takeaway (not those that have adapted to offer takeaways during periods of restrictions, in alignment with previous COVID-19 business grant schemes)

A Leisure business will be defined as a business that provides opportunities, experiences and facilities, in particular for culture, recreation, entertainment, celebratory events and days and nights out .

The following criteria will be used to assess whether a business is eligible for a grant under this threshold:

  • Businesses that may provide in-person intangible experiences in addition to goods
  • Businesses that may rely on seasonal labour
  • Businesses that may assume particular public safety responsibilities
  • Businesses that may operate with irregular hours through day, night and weekends

An accommodation business can be defined as a business whose main lodging provision is used for holiday, travel and other purposes.

The following criteria will be used to assess whether a business is eligible for a grant under this threshold:

  • Businesses that provide accommodation for ‘away from home’ stays for work or leisure purposes
  • Businesses that provide accommodation for short-term leisure and holiday purposes

A Gym and Sport business can be defined as a commercial or non-profit establishment where physical exercise or training is conducted on an individual basis or group basis, using exercise equipment or open floor space with or without instruction, or where individual and group sporting, athletic and physical activities are participated in competitively or recreationally.

The following criteria will be used to assess whether a business is eligible for a grant under this threshold:

  • Businesses that offer in-person exercise and sport activities to the general public
  • Businesses that open to members of the public paying an entry or membership fee
  • Businesses that require extensive cleaning protocols, which significantly slow down trade
  • Businesses that offer exercise classes or activities, which may mandate space and no masks etc.

A Personal Care business can be defined as a business which provides a service, treatment or activity for the purposes of personal beauty, hair, grooming, body care and aesthetics, and wellbeing.

The following criteria will be used to assess whether a business is eligible for a grant under this threshold:

  • Businesses that deliver in-person holistic, beauty and hair treatments
  • Businesses that provide services such as tattoos and piercings
  • Businesses that offer close-contact services, which are required to deliver the treatment
  • Businesses that offer services, treatments or activities that require social distancing and cleaning protocols, which have led to a reduction in their capacity to deliver personal care services

Strand 2 Accomodation exclusions

Private dwellings, education accommodation, residential homes, care homes, residential family centres, beach huts.

Strand 2 Leisure exclusions

A leisure business should exclude: all retail businesses, coach tour operators, tour operators and telescopes

Strand 2 Gym and sports exclusions

Home gyms, home exercise studios, home sports courts and home sports grounds.

Strand 2 Personal care exclusions

  • Businesses that only provide personal care goods, rather than services
  • Businesses used solely as training centres for staff, apprentices and others
  • Businesses providing dental services, opticians, audiology services, chiropody, chiropractors, osteopaths and other medical or health services, including services which incorporate personal care services, treatments required by those with disabilities and services relating to mental health.

Information on payments

If you have previously applied for a Local Restriction Support Grant and have completed an Online Application since November 2020, you do not need to re-apply for this Grant.

Your existing application and information will be used to determine your eligibility based on the following, which is in line with the latest Government Guidance:

  • You are the named Rate Payer
  • You are in the Non-Essential Retail or Hospitality, accommodation, leisure, personal care and gym business
  • Your business is not excluded
  • Your business is actively trading as at 1 April 2021
  • Your business has passed all of the Government pre-payment and fraud assurance checks.

Local authorities are expecting this funding in April.

We will update this website once we have an expected timeline for payments.

Update to COVID-19 business grant subsidy allowance

The EU State aid rules no longer apply to subsidies granted in the UK following the end of the transition period, which ended on 31 December 2020.

BEIS Guidance for public authorities explaining the subsidies chapter of the TCA, World Trade Organisation rules on subsidies, and other international commitments can be found on the GOV.UK website.

On Thursday 4 March new subsidy allowances were established for the COVID-19 business grants schemes, on the basis of the principles set out in Article 3.4 of the TCA.

Subsidy allowance

This scheme is covered by 3 subsidy allowances:

  • Small Amounts of Financial Assistance Allowance, allowed up to £335,000 (subject to exchange rates) over any period of 3 years
  • COVID-19 Business Grant Allowance, allowed up to £1,600,000
  • COVID-19 Business Grant Special Allowance, if  limits under the Small Amounts of Financial Assistance Allowance and COVID-19 Business Grant Allowance are reached, you may be able to access a further allowance of funding under these scheme rules of up to £9,000,000, provided certain conditions are met

Grants under these 3 allowances can be combined for a potential total allowance of up to £10,935,000 (subject to exchange rates).