On 9th September 2020 the government announced new grants of up to £1,500 for businesses that have been forced to close due to local COVID-19 lockdown orders. This was increased to £3,000 on 9 October 2020.

Speaking in the House of Commons Chief Secretary to the Treasury Steve Barclay announced that the new funding would be available every three weeks for each business property. This was reduced to two weeks when the increase to the grants, to £3,000, was announced in early October. Payments will be triggered when central government implements a local lockdown due to a high incidence of Coronavirus.

  • Where there are lockdowns applied by local authorities, they will be responsible for distributing grants to businesses.
  • Grants will be worth up to £3,000 every two weeks (£1,500 for every three weeks prior to 9 October 2020) the lockdown applies. Smaller businesses will receive £1,000.

The payments are currently available to businesses in Blackburn, Darwen, Pendle and Oldham as part of an ongoing trial scheme.


  • Any businesses still closed at a national level (e.g. nightclubs), will not be eligible.
  • If a business occupies a premise with a rateable value less than £51,000 or occupy a property or part of a property subject to an annual rent or mortgage payment of less than £51,000, it will receive £1,000.
  • If a business has a rateable value more than £51,000 or part of a property subject to an annual rent or mortgage payment of more than £51,000, it will receive £3,000/£1,500.
  • Local authorities will also receive an additional 5% top-up amount of business support funding to enable them to help other businesses affected by closures which may not be on the business rates list. Payments made to businesses from this discretionary fund can be any amount up to £1,500. Grants may be less than £1,000 in some cases.
  • Local authorities will be responsible for distributing grants to businesses in circumstances where they are closed due to local interventions.
  • Further eligibility criteria may be determined by local authorities.
  • As with other COVID business grants, local grants to closed businesses will be treated as taxable income.


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