Decision details

The Additional Restrictions Grants (ARG) Scheme is the means by which the council is able to deliver the business support announcement by Central Government on 31 October 20. The scheme provides essential financial support to businesses who have not been able to access it through other Local Restrictions Support Grant schemes.

Being a discretionary scheme, strict eligibility criteria were initially set to limit the number of awards. Alterations to the scheme have been necessary (a) to enable funds to be spent (b) to keep pace with the direction set by Central Government announcement (c) to support the local economy and the Towns priorities.

The latest round of funding through the Additional Restrictions Grant ‘ARG August 21’ is confirmed as is the council’s allocation.

Following the new round of funding further amends to the Additional Restrictions Grant scheme are necessary to keep pace with the current economic position. This amended scheme will involve the awarding of direct grants to support the economic recovery and turnaround of business who are in need of assistance. Businesses with commercial premises and associated fixed costs will be able to apply. Businesses in the start-up phase and new to trading with a commercial premises liability are also eligible.

The amount to be awarded will be subject to the rateable value. If one does not exist this will be based on the annual rental value.

Businesses will be able to utilise the grant to carry out improvements to their business, cover fixed overheads, and manage operational change and improvement. Wage subsidy /staffing/retraining costs are not eligible under this new round.

Outcomes of the ARG August 21 scheme include:
• Strengthened local economy
• Resilience within the marketplace
• Safeguarding of jobs
• Viable business base
• Improved NDR collection rates
• Improved commercial unit occupancy rates
• Visible improvements to the high street.

A simple eligibility criteria and conditions will allow businesses to access fair and proportionate grant awards of between £5,000 and £20,000 per business.

Awards will be in line with Rateable Value/Rental Value:

Rateable Value/Rental Value Amount
£15,000 or under £5,000
£15,001 to £50,999 £10,000
£51,000 and above £20,000

Eligible criteria includes:

• Businesses in start-up phase able to demonstrate active trading and liability for commercial premises
• Businesses located within business premises on a full commercial basis i.e. liable for rates or rent,
• A base within the Middlesbrough local authority area
• Businesses that have received approved/recognised business agency support or recovery planning support with Middlesbrough Council’s Business Recovery Officer to encourage business sustainability
• Ability to demonstrate that business operations have been affected by Covid 19 pandemic restrictions; has not returned to pre pandemic capacity levels or operations continue to be impacted. Impacts could include financial; delay in locating suitable premises, reduced footfall, staffing reductions/isolations “pingdemic” recruitment issues; impacted growth plans.
• The business must have a business bank account or provide evidence of business activity through a nominated account in the same name as the business applicant

Hospitality, Leisure, Personal Care, Non-Essential Retail can only qualify if the premises are different to those already supported previously with grants distributed via the Covid small business/LRSG/Wet Led Pubs and ARG grant schemes distributed by Middlesbrough Council.

Exclusions also include:

• National retailers
• Essential retail
• Businesses seeking support for wage/staffing costs
• Amusement Arcades
• Adult Gaming & Gambling centres
• Fast Food
• Takeaways
• Banks/Financial Institutions
• Businesses with multiple linked branches
• Franchises
• Self Employed (SEISS and personal income support has
continued to be available)
• Home based businesses (resident / council tax support
continues to be available)
• Businesses that rent a chair or sublet an area or space from
Market traders
• Taxi Drivers and operators
• Businesses already in receipt of or in the application process of
the following 20/21 Middlesbrough Council Grant Schemes:
o Strategic Business Grant
o Future High Street Grant
o Heritage Action Zone Development Funding
• Property Developers and Commercial Property Landlords

Awards will be made, provided the applicant meets the criteria and the evidence to support the application is appropriate and relevant. Once the application has been considered the applicant will be informed of the decision within 7 working days. All decisions are final.

The amount spent will be monitored weekly, the scheme will also be subject to review in both December 2021 and January 2022 to ensure it continues to support the local economy. Any changes to the scheme will be subject to further approval.

REASON FOR DECISION:

Alterations to the scheme have been necessary (a) to enable funds to be spent (b) to keep pace with the direction set by Central Government announcement.

N/A