Small Businesses: Coronavirus

Department for Business, Energy and Industrial Strategy written question – answered on 12th October 2020.

Alert me about debates like this

Photo of Grahame Morris Grahame Morris Labour, Easington

To ask the Secretary of State for Business, Energy and Industrial Strategy, if he will make an assessment of the potential merits of (a) notifying the European Commission that local authority grants to businesses impacted by local lockdown restrictions fall outside of any state aid provisions restricting businesses receiving full compensation and (b) directing local authorities that payments can be made to local businesses outside of such state aid restrictions.

Photo of Paul Scully Paul Scully Parliamentary Under-Secretary (Department for Business, Energy and Industrial Strategy), Minister of State (London)

The United Kingdom left the EU on 31 January 2020. Under the Withdrawal Agreement, EU State aid rules continue to apply during the transition period, subject to regulation by the EU Commission.

In administering the Local Restrictions Support Grant, the Government will provide to an eligible business up to £1,500 of funding for each three-week period that the business is required to close by local restrictions implemented by Government. Local authorities administering the schemes must be satisfied that all State Aid requirements have been fully met and complied with when making grant payments.

Although payments under this scheme and certain other Covid-19 related business grant schemes are treated as State aid and therefore count toward the total de minimis State Aid limit of €200,000, if firms have reached that threshold they may still be eligible for funding under the Covid-19 temporary State aid framework where the limit is €800,000.

Does this answer the above question?

Yes1 person thinks so

No0 people think not

Would you like to ask a question like this yourself? Use our Freedom of Information site.