Delight as Government U-turn allows B&Bs to access virus grant funding

Bed and breakfasts paying council tax will now be able to qualify for a £617m coronavirus grant scheme after a Government U-turn.
MP Tim Farron had campaigned for the change in the rules.  (Photo by Matt Cardy/Getty Images)MP Tim Farron had campaigned for the change in the rules.  (Photo by Matt Cardy/Getty Images)
MP Tim Farron had campaigned for the change in the rules. (Photo by Matt Cardy/Getty Images)

A top-up fund was announced earlier this month by the Department for Business, Energy and Industrial Strategy to help struggling firms who did not qualify for other existing grants - with B&Bs that pay council tax specified as being among the priorities to receive the cash.

However, The Yorkshire Post revealed that the vast majority of them would not be able to receive support under the initial eligibility rules.

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That decision has now been reversed, with the eligibility rules changed. The Bed and Breakfast Association said the change to the grant scheme, which is being administered by local councils following nationally-set rules, was a “great result”.

An estimated 10,000 bed and breakfasts – including many in Yorkshire – were among those who had missed out on previous schemes offering £10,000 grants to struggling firms due to paying council tax rather than business rates. It was initially decided that the new top-up grant scheme would not be open to any business eligible for any kind of other Government support.

That included the Self-Employed Income Support Scheme (SEISS) which allows businesses to claim 80 per cent of their trading profits for three months.

The Government’s own estimate is that SEISS covers 95 per cent of people who receive most of their income from self-employment – meaning many B&Bs were set to miss out again.

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But revised rules were published on Saturday which confirmed businesses eligible for SEISS were now eligible for the scheme.

Former Liberal Democrat leader Tim Farron, who had been campaigning on the issue which also affected B&Bs in his Lake District constituency, said in a video posted on Twitter: “Many small bed and breakfasts will not just be able to claim money to help them to keep food on the table and protect their family but also to keep their businesses going.

“That’s so important for them but also our economy.”

Editor’s note: first and foremost - and rarely have I written down these words with more sincerity - I hope this finds you well.

Almost certainly you are here because you value the quality and the integrity of the journalism produced by The Yorkshire Post’s journalists - almost all of which live alongside you in Yorkshire, spending the wages they earn with Yorkshire businesses - who last year took this title to the industry watchdog’s Most Trusted Newspaper in Britain accolade.

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Postal subscription copies can be ordered by calling 0330 4030066 or by emailing [email protected]. Vouchers, to be exchanged at retail sales outlets - our newsagents need you, too - can be subscribed to by contacting subscriptions on 0330 1235950 or by visiting www.localsubsplus.co.uk where you should select The Yorkshire Post from the list of titles available.

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Sincerely. Thank you.

James Mitchinson

Editor

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