New support for “Tier-2” businesses announced on 22 October 2020. What’s the detail?

Business grants

There has been growing concern since the introduction of the tier system that businesses not legally required to close, in particular, those in the leisure, hospitality and accommodation sectors will be hardest hit.

The problem is that, unless these businesses are located in a Tier-3 alert area, they won’t qualify for support. The Chancellor has now announced that further funding will be allocated to local authorities to allow such businesses to access support.

The way the money will be allocated will be by looking at the number of hospitality, hotel, B&B, and leisure businesses in the area, then the rateable value of the business. The maximum funding will be £2,100 per month.

It will then be up to the local authority to determine which businesses can access support, and how much they will receive. Businesses should therefore refer to their own authority website, rather than GOV.UK.

This article has been reproduced by kind permission of Indicator – FL Memo Ltd. For details of their tax-saving products please visit or call 01233 653500.