More than £6bn of business grants have been distributed to English small and medium sized businesses through the government’s coronavirus grant schemes.
A total of 491,725 grants, worth £6.11bn, have been distributed out of a pot of £12.3bn as of last night, translating into a 49.58 per cent delivery rate.
Grants of £10,000 are available to small businesses of any kind with a rateable value of between £12,00 and £15,000.
Companies in the hospitality, retail and tourism sectors are also eligible for an additional grant that is paid per property of their business.
Properties with a rateable value of up to £51,000 are eligible to receive either a £10,000 or £25,000 grant.
The schemes, first announced in chancellor Rishi Sunak’s budget last month, sees the government give funds to local authorities who then distribute it to eligible businesses in their boroughs.
London businesses have received £839.42m of funding through the grant schemes so far out of a possible £1.62bn.
Some boroughs have been better than others at distributing the cash.
Southwark council has managed to distribute 87 per cent of the £70.06m it was given by the government.
Some others have only handed out less than 30 per cent of funds given to them.
London Chamber of Commerce and Industry chief executive Richard Burge said there was “more work to do” for some boroughs.
“Cashflow is fast running out for many SMEs across London and these grants are important to trying to keep them afloat in the short term,” he said.
“The London figures show that many boroughs are making good progress, but there is more work to do in others.
It’s important that businesses respond promptly to contact from their local council regarding these grants. And then equally important that councils issue these grants swiftly.”
Federation of Small Businesses national chair Mike Cherry added: ““The funding is there to be used to ensure we have a strong and robust economy to bounce back with once restrictions ease, so it’s inexcusable for any council to delay.
“Get the money out there and back our small businesses.”
Clare Coghill, an executive member of the lobby group London Councils, said some boroughs were finding it difficult to distribute funds due to a lack of data provided by businesses,
“Boroughs have been working incredibly hard to distribute the grants announced which will be distributed via the business rates system,” she said.
“However gaps in the data from businesses has been a significant problem.
“Boroughs need businesses’ bank details to ensure rapid payments can be made while carrying out the appropriate checks to minimise the potential for fraud.”
Borough by borough breakdown of grant distribution
Source: Department of Business, Energy and Industrial Strategy
|Borough||Funds distributed (Total Funds given by government)|
|Barking and Dagenham||£9.55m (£26.94m)|
|City of London||£4.14m (£14.74m)|
|Hammersmith and Fulham||£14.72m (£49.21m)|
|Kensington and Chelsea||£28.51m (£40.96m)|
|Kingston upon Thames||£17.76m (£30.65m)|
|Richmond upon Thames||£31.59m (£41.61m)|
|Tower Hamlets||£47.16m (£78.82m)|
|Waltham Forest||£16.76m (£54.07m)|