New Discretionary Grant Fund total not enough

The new Discretionary Grant Fund will not provide anywhere near enough cash to support the vast majority of businesses in South and Vale affected by the COVID-19 pandemic.

 

discretionary grant fund - south and vale logos

 

South Oxfordshire and the Vale of White Horse district councils are currently assessing how many businesses may be eligible but have explained that they’d only be able to provide a tiny percentage of eligible businesses a grant to support them during this crisis. Nationally, the government is only providing an extra five per cent of funding on top of the money received in the first round of COVID-19 business grants in April.

The government has provided criteria within which the the district councils can create a discretionary scheme.

Cllr Leigh Rawlins, Cabinet Member for Finance and Deputy Leader of SODC, said:

‘We now have the challenge of trying to spread this money to as many businesses as possible, while ensuring they also receive a meaningful amount to make any kind of a difference. The simple matter is that there is not enough money to do that. We will see if we can try to identify the businesses most in need, but that won’t be easy.’

Cllr Andrew Crawford, Cabinet Member for Finance at the Vale of White Horse District Council, said:

“We know our small and micro businesses are worried and we’re doing everything we can to help them, but it’s very clear that this new grants scheme will fall quite short of being able to help those that weren’t eligible for the last round. We will do everything we can to provide guidance and advice to businesses that aren’t successful in their application and to point them to other sources of funding, like the government COVID-19 loans scheme.’

 


Timeline

The councils are aiming to start paying funds by early June in line with the government’s guidance. They are now setting up the online application process using the detailed eligibility criteria the government has just announced, so it might take until near the end of May before businesses in South and Vale can start applying.

However, taking a bit of time now to set it up now will ensure the process is quicker and easier to complete, meaning the councils can pay the funds to successful applicants without delay.

Important notes

Only businesses that were trading on 11 March 2020 will be eligible for this scheme and funds received will be subject to tax, although only for businesses that make an overall profit once the grant income is included.

Businesses who have applied for the Coronavirus Job Retention Scheme are eligible to apply for this scheme.

This grant funding will be for businesses that are not eligible for other support schemesBusinesses which have received cash grants from any central government COVID-19 related scheme are ineligible for funding from the Discretionary Grants Fund. 

 

discretionary grant fund