To ask the Secretary of State for Business, Energy and Industrial Strategy, what happens to funding allocated to local authorities as part of the Local Restrictions Support Grant (LRSG) and Additional Restrictions Grant (ARG) which is not distributed to businesses.
19 January 2021
The Government has put forward an unprecedented package of support for businesses in recognition of the disruption caused by Covid-19. This support includes extensive grant funding for businesses that have been required by law to close as a result of, or have been severely impacted by, localised and national restrictions.
Local authorities should pay businesses in line with the restriction period to which the funding is allocated to ensure local economies are supported during restrictions. Any unspent funding allocated to local authorities under a mandatory grants scheme will be recovered after a reconciliation process. It is not expected that discretionary schemes, such as the ARG, will have any unallocated funding as we would expect local authorities to apportion this funding to businesses. We are working closely with local authorities to ensure funding gets out the door to businesses as quickly as possible and to avoid any unnecessary underspend.